Bonded Dispatches

Version Relevance: All versions

Issue: I have a new scenario that I have to implement on the system in the next couple of weeks.

Basically we are starting a SOI (Supplier Owned Inventory) system with real time stock movements via a web portal.

Now I have to keep our stock levels on the customers site between upper and lower limits and ship product out to them on a 3 day delivery system (customer in Holland) so I am having to work on forecasts to ensure enough completed stock is available at our end.

The main problem I am fore seeing is that I need to be able to track the stock at their site as well as raising dispatch paperwork to ship them over there. Then once they use the stock I am able to raise the invoice.

From what I can see the Bonded Dispatch part of Caliach should achieve this rather than multi-location stock control.

But will I be able to dispatch say 10 units but invoice them 1 at a time or will all 10 have to be invoiced at the same time. If I could it would keep an accurate stock total when we do the monthly stocktake.

Sep 20th, 2005

Feedback: Bonded stock will work fine as long as you have a sales order, but bonding does not (cannot) predict which locations are to be used and also has to be able to operate for non-multi-location parts (and is consequently completely location independent); hence it may not always be ideal. Run a pilot (perhaps on a copy datafile) to test it out.

If you mark a sales order as "No Invoice on Dispatch" you can only subsequently invoice sales dispatch items by line; so if you do a single dispatch of say 20 items, you would have to invoice them all in one go.

A preferred approach in this environment is to just use the multi-location stock tranfer system to move stock from your site to theirs - after all, the stock is still owned by you, so should still be on your books. When they use it, you then do a dispatch (from their location) and invoice it. The stock transfer documents serve as consignment notes for tracking the movements, and give you a full audit trail.

Paul Wilson - Caliach Consultant

Issue: I understand what you are saying but we have to raise despatch paperwork for each shipment we send to Holland for Customs purposes and to be able to book into their inventory system.

Thats why I decided against the multi-location system.

I looked at raising seperate dispatch paperwork but that has been rejected by the recieving customer.

Besides this cause multiple versions of dispatch paperwork for the same items.

The bonded should work as long as we can find away to invoice on used amounts. Single unit dispatches have been ruled out by the carrier as it involves to much paperwork.

Sep 20th, 2005

Feedback: There is no reason a stock transfer document cannot pass as shipping documents for customs purposes, with customisation if necessary (to act as a "customs" invoice for example); in fact this is one anticipated usage.

When your customer books the stock in to their system on receipt, they will not book it in as their inventory, but yours (probably in a dedicated consignment stock module).

It is important to remember that until they have notified you of consumption (and allowed you to invoice), it is still your stock and technically undispatched from your sales system.

Also crucial here is to distinguish between a "dispatch" of goods as consignment stock (technically and legally a stock transfer of your inventory to another site), and the sales dispatch when they consume the stock, which is an invoiceable event transferring stock from your balance sheet to theirs, incurring a corresponding liablility in their accounting system (under "Trade Creditors"), along with an equivalent asset appearing on your "Trade Debtors" balance sheet account.

It is important to ensure that system reported inventory levels, outstanding order cover and invoiced values reflect this correctly. It may be worth speaking to your accounting/commercial department to get their view.

Paul Wilson - Caliach Consultant