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Transfer Order Shipping
Transfer Order Shipping
After a transfer order has been created, picking documentation is printed at the supplying company/warehouse to provide item numbers and quantities needed. This documentation is printed on request or automatically as part of daily report processing (depending on the value of the Picker Print Request Code defined on Reference File category D05). When the picker is generated, the status of transfer orders associated with the picker is changed from open to released. Only released transfer orders may be shipped.
A user at the supplying company/warehouse then picks the inventory to be shipped and enters the quantity shipped against each order line. Validation ensures that the quantity shipped is less than or equal to the quantity ordered. The cumulative quantity shipped to date for each transfer order line is stored on the transfer order line record. This record is updated with subsequent shipments. One shipment record is created for each order line for each shipment.
At shipping time, you have the option to indicate whether an invoice will be created for the transfer order. This option will only be available if ESL/SSD processing is being used and is maintainable until the order has been shipped. If this flag is set to 'Y', the customer number defined on Reference File category D07 will be retrieved and the VAT code, VAT type, and Home/Export flag will be validated on the Customer Master File. Only exonerated VAT will be processed on the invoice and the home/export flag must be 'H' to indicate a home customer. Otherwise, invoice processing will not be performed. All transfer order invoices must be consolidated. The invoice price will be determined by either the transfer price or the standard cost for the item on the sourcing warehouse's Warehouse Balance File. Reversal transactions will not be allowed for invoiced transfer orders.
A default book code created for transfer order shipping will be used to format the accounting transactions that are written to the A/R Accounting Transaction File. Transactions will also be written to the Shipment/Returns Audit Trail File for the invoiced transfer order shipments, giving visibility over in-transit shipments.
Since only invoiced transactions will appear on the ESL and SSD report, it will be your responsibility to invoice all customers that cross the EEC border so that these transactions will appear on the reports.
On completion of the Transfer Order Shipping conversation, the shipped quantity is relieved from supplying warehouse inventory and posted to in-transit warehouse inventory if the shipment is not invoiced. (An in-transit warehouse is defined for each combination of supplying company/warehouse, receiving company/warehouse, and free on board code on Reference File category D07.) This reference file contains the In-Transit Balance Type field, a required field which has four valid values:
H - On-hand (Is available for planning, but is not available for distribution)
D - Distribution (Is not available for planning, but is available for distribution)
T - Transit (Is not available for planning, and is not available for distribution)
Q - Quality (Is not available for planning, and is not available for distribution)
If the in-transit company/warehouse is a distribution warehouse and is also available for planning, you should set this field to not available for distribution in order to prevent double counting during a transfer control shipment. By doing so (and assuming that Requirements Planning Generation is run when the shipment is in-transit), the transfer order quantities will not be double counted.
The default in-transit balance type in Reference File category D07 is only used if three specific conditions are met. The in-transit warehouse must be a distribution warehouse, this warehouse must have an Available for Planning flag on the Warehouse Description file set to Y, and the balance type used is not Available for Distribution, as defined on the System Control File with Installation-Specific Data, in Balance Type Maintenance.
If the above conditions are not met, the default cannot be used to prevent the occurrence of double counting transfer order quantities. If the default balance type is not used, the first balance type, Available for Distribution, usually 'D', is used.
After Reference File category D07 has been validated, you may request a printout of the order, showing quantity shipped to date, quantity shipped for this shipment, and quantity ordered.
An exception report can be printed from the Transfer Order Detail File periodically at your request to highlight open order lines with outstanding quantities (lines with a quantity shipped that is less than the quantity ordered). Picking lists for these items can also be printed on request.
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