SYSPRO's Goods in Transit system provides a mechanism for greater management control over stock items that are in the process of being transferred between warehouses. It achieves this by monitoring warehouses transfers and supply chain transfers.
Warehouse transfers are generated using the Inventory Movements program, where the transfer of an item from a source warehouse generates a detailed record of the transaction. Stock is depleted from the source warehouse at the time of confirming each line of the transfer.
At the receiving warehouse, a review process with extensive selection criteria enables you to control the receipt of this stock. Supply chain transfers are generated using the Sales Order Entry program. The capture of a supply chain transfer order enables you to reserve stock for transfer at a later point in time (as opposed to an immediate transfer out catered for by Inventory Movements).
You should consider implementing the Goods in Transit system if you manage multiple warehouses and transfer stock regularly between these warehouses.
- Warehouse Transfers
- Supply Chain Transfers (Sales Orders)
- Supply Chain Transfers (Requirements Planning)
- Costs and Integration
With the implementation of the full Goods in Transit transfers facility, the Warehouse Transfers function (which appears on the Inventory Movements program menu) is replaced by a Goods in Transit Transfers function.
The transfer functions: Out (no destination) and Immediate remain unchanged. However, the transfer functions: Out and In have been extensively amended to provide for the effective monitoring of stock movements.
A transfer OUT from a warehouse creates goods in transit records indicating that stock was transferred from the source warehouse to the target warehouse. These records include any lots, bins or serials involved in the transfer.
Stock on hand is decreased at the source warehouse, while stock is placed in transit for the target warehouse.
If the target warehouse is defined as transfer supplied (Warehouses for Stock Code) then the system establishes whether any lead time and/or cost multiplier exists between the two warehouses. Lead time and/or cost multiplier entries defined against a specific stock code/warehouse combination take precedence. If these entries are not defined at stock code level, then the program uses entries defined at warehouse level (Browse on Warehouse Move Matrix). If entries are not located in the matrix then a lead time of zero (0) and a cost multiplier of one (1) is used.
Each goods in transit transfer is identified by a reference number which is generated according to your numbering method specified within the Inventory Setup options.
You can select to append lines to an existing GIT reference number provided that it is for the same run of the program. In addition, an operator preference allows you to print on a single document all goods in transit transfers OUT per reference number. The document is printed when you select the option indicating the last transfer before printing.
Normal Transfer journals are created.
The record of outstanding transfers controls the transfer in process. You can select to review outstanding transfers for each warehouse according to various selection criteria.
You can select to receipt the total quantities transferred, or you can change the receipt quantity to effect a partial receipt.
If you receipt the total quantity outstanding then the transfer is marked as complete. The in transit quantity for the target warehouse is reduced and the on hand quantity is increased by the receipt quantity.
For a partial receipt, the transfer line can be completed by updating the source warehouse with the difference in stock quantity and posting an adjustment transaction, or by writing off the stock and posting an expense transaction.
Supply Chain Transfers (SCTs) allow stock to be replenished across multiple warehouses using the Sales Order module as well as managing back orders for stock to be transferred.
A supply chain transfer provides a method of reserving stock for transfer, instead of transferring the stock out immediately. Although similar to inter-branch transfers, supply chain transfers do not require the capture of customer details.
Upon entry of a supply chain transfer order, you are required to specify the source and target warehouses. These remain in force for the duration of the supply chain transfer, and cannot be changed during maintenance.
Although only stocked merchandise lines and comment lines can be entered, the transfer cost multiplier assigned to the stock code/warehouse provides the facility to include transport costs at the receiving warehouse.
The line ship date is always required for a supply chain transfer order. The expected receipt date is determined from the entered ship date plus any transfer lead time defined for the stock code/warehouse. If this has not been defined, then the transfer lead time is extracted from the Browse on Warehouse Move Matrix. If this is not defined then the transfer lead time defaults to zero.
The cost of the item is used as the price. Although you cannot change this, the system refreshes the current cost at the time of transfer. You can prevent operators from viewing this cost by setting the access level against the activity: S/O Show cost/profit to denied. Operators will be unable to view the transfer cost when creating supply chain transfers or when browsing on sales order lines.
At the end of capturing a supply chain transfer order, you can maintain the order using the normal order entry facilities, or using the Back Order Release program.
Although an SCT may proceed through the normal order process of printing a delivery note before releasing it to a status 8, it can also proceed directly from a status 1 to status 8 without the printing of a delivery note. A transfer document must, however, be printed before the target warehouse can transfer the stock items into its warehouse. A transfer reference number is allocated (or entered, if you indicated that goods in transit references must be generated manually) at the time of releasing the SCT to a status 8.
If you enabled the option: Use source branch for numbering SCT orders (Sales Order Setup) then the next number assigned to a supply chain transfer order is based on the numbering method of the branch assigned to the source warehouse. Otherwise the numbering method of the branch assigned to the target warehouse determines the next order number assigned to a supply chain transfer order.
Once the transfer document is printed, details of the transfer update the Goods in Transit Reference in the Inventory Movement file. This information is accessible using the GIT Detail Report and Browse on GIT References programs.
At this point, control returns to the Inventory warehouse transfer system where the transferred items are received at the target warehouse using the Transfer In facility.
Within the Requirements Planning system, supply chain transfer orders (SCT orders) are treated as both a supply and a demand and the system takes into account any items that are part of a warehouse transfer awaiting receipt at the target warehouse.
The Requirements Planning system creates suggested Supply Chain Transfers based on demand for transfer supplied items.
A specific demand is derived from a stock/warehouse combination that is designated as transfer supplied, and thus suggests a transfer from another warehouse (i.e. SCT) instead of a job or a purchase order.
The suggested transfer is based either on the warehouse designated as the supply warehouse at stock code level, or the warehouse in the matrix. Lead times are selected in the same way. A new suggested supply chain transfer could trigger a series of suggested SCTs, as each one creates a new demand. It could also trigger either a job or purchase order at the top of the supply chain if the demand extends to the top.
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Suggested supply chain transfers will not function if warehouses are consolidated - they will cancel themselves out. Suggested SCTs will also be ineffective if any warehouses are excluded from the calculation - the supply chain will be broken, resulting in a suggested Purchase Order or Job. Suggested supply chain transfers are presented for confirmation to live SCT orders. |
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A cost multiplier can be applied to the transfer of an item between warehouses. This enables you to assign non-merchandise costs to the warehouse from which the item is being transferred (e.g. freight and handling charges).
This multiplier can be defined at stock code level - against the warehouse for specific stock items - or at warehouse level within the Browse on Warehouse Move Matrix program.
When receiving items at the target warehouse, you will be required to distribute the non-merchandise portion of the cost to nominated ledger accounts.
Integration occurs via the transfer cost ledger account. This account can be defined at company level (General Ledger Integration) or within the Browse on Warehouse Move Matrix for each source/target warehouse combination.
Configure goods in transit
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You activate the Goods in Transit system by enabling the option: Use full Goods in Transit transfer facility (Inventory Setup).
If the system verifies that no transfers are currently in process, you can save your selection and exit the program. You are now ready to process warehouse transfers, and supply chain transfers as required.
If the program detects that warehouse transfers are currently in progress, a window is displayed with the option to either run the Warehouse Exception or to run the GIT Conversion Program program.
- Running the Warehouse Exception program will highlight where there are unfinished transfers that need to be addressed.
- Running the GIT Conversion Program program will convert existing warehouse transfers to Goods in Transit transfers.
However, in order to maximize the effectiveness of the system, there are a number of other setup options that you should configure before you begin the process of transferring goods.
These include:
- The key type (i.e. numeric or alphanumeric) of your goods in transit reference
- The length of time you want to retain goods in transit entries
- The goods in transit reference numbering method
- The ledger control account that you want to use for these entries
Some of these options will have an effect on how the system functions; others will assist you in establishing the correct controls required to monitor your goods in transit.
Setting up your company
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From the Company Maintenance program, select the Key Types tab and indicate whether the GIT reference must be alphanumeric or numeric.
If you want to generate a GIT reference manually, then you can define your GIT reference as numeric or alphanumeric.
If you want to generate a GIT reference automatically by company or by warehouse, then you must define a numeric key type for your GIT reference.
If you want to generate a GIT reference automatically by warehouse with a prefix, then you must define your GIT reference as alphanumeric and you must specify a prefix for the warehouses that will be using GIT transactions.
Setting up your Inventory module
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From the Inventory Setup program, select the General tab and enable the option: Use full Goods in Transit transfers facility.
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From the Options tab, enable the option: Apply cost multiplier when processing receipts.
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From the Options tab, enable the option: Request ledger codes for inventory transactions and click on Define Options. Ensure that the options: Receipts and Stock transfers are selected.
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From the History tab, highlight the Goods in Transit entries field and indicate the number of G/L periods you want to retain entries.
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From the Documents tab, indicate whether you want to print Transfer out documentation on line and/or in batch mode. Select this if you want system-generated documentation to accompany goods in transit.
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From the Numbering tab, indicate how you want to generate Goods in Transit Reference numbers.
Setting up General Ledger integration
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From the General Ledger Integration program, select the Inventory tab, highlight the Goods in Transit G/L control account field and indicate the control account to which postings must be made.