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Multi-step Multi-vendor Items

  • 1.  Multi-step Multi-vendor Items

    Posted Feb 06, 2020 09:30 AM
    We have a couple of situations for which we are trying to determine the best procedure for the system (NAV 2013R2) that would incorporate warehouse management and purchase orders to capture the total unit cost for the items.

    1. We have a product that is purchased from Vendor A and drop-shipped to Vendor B for embroidery before finally being delivered to our warehouse. Since the two vendors need separate purchase orders, how can we capture the costs of both vendors in the unit cost for the inventory item?
    2. We have another product that is purchased from Vendor X and received at our warehouse as item 123. This product is later pulled from the warehouse and sent to Vendor Z for debossing. Then, it is received at the warehouse as item 789. How can we capture the cost of item 123 and the cost from Vendor Z in the unit cost for item number 789?
    Any insights or suggestions would be appreciated.

    ------------------------------
    Ken Elliott
    Director, Financial Operations and Process Improvements
    Billy Graham Evangelistic Association
    Charlotte NC
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  • 2.  RE: Multi-step Multi-vendor Items

    TOP CONTRIBUTOR
    Posted Feb 07, 2020 07:05 AM
    First item could be Item Charges or Production Order using subcontract Purchase Orders.

    Second item Production Order with subcontract POs. 



    Sent from my T-Mobile 4G LTE Device
    Please excuse the brevity of the response and any mistakes.  Thanks. 






  • 3.  RE: Multi-step Multi-vendor Items

    Posted Feb 07, 2020 11:15 AM
    Thanks, Ron.

    We have had no need to explore Item Charges before, but this looks like it will definitely work for the first scenario.

    Regarding our second scenario, we do not have manufacturing or subcontracting options in our system. Are you familiar with any other way to handle this? We have some auto-liquidating (auto-balancing) customer numbers for when internal departments pull inventory out for use rather than for sale. I was thinking we could create an auto-liquidating (auto-balancing) vendor number as well. Then, we could use a sales order for that auto-balancing customer to pull item 123 out of inventory when we send it to the vendor, and a purchase order for that auto-balancing vendor to receive in item 789 after it is debossed. Finally, we would have a purchase order to Vendor Z for the debossing, and it would use Item Charges assigned to the purchase receipt for the auto-balancing vendor. Does that sound like it would work?

    Thanks.

    ------------------------------
    Ken Elliott
    Director, Financial Operations
    Billy Graham Evangelistic Association
    Charlotte NC
    ------------------------------



  • 4.  RE: Multi-step Multi-vendor Items

    SILVER CONTRIBUTOR
    Posted Feb 07, 2020 01:40 PM
    For item 2 you can also do this with an Assembly.

    1) Create an item for the services you purchase from Vendor Z
    2) Mark the item as Non Inventory so you don't accumulate quantities (although you could use the qty on hand as a cross check also)
    3) Purchase the item from Vendor Z
    4) Create an assembly BOM with the original Vendor X item + the Vendor Z "Service Item"

    When you get the product back from Vendor Z - create and post an Assembly Order for Item 789 - the costs of Vendor Z and Vendor X will be combined and the item will end up in inventory.

    Problem - you won't be able to easily see what you've sent to Vendor Z and what they've sent back.  The costs that show up in Item 789 are going to be based on FIFO or whatever costing you're using for the item.  Sometimes this matters, sometimes it doesn't.

    You should have Assemblies available without needing to add more modules.

    -Rob

    ------------------------------
    Robert Jolliffe B.A.Sc, MCSE, MCS - NAV Manufacturing Expert
    President
    Sabre Limited
    Cambridge
    robert@sabrelimited.com
    www.sabrelimited.com
    ------------------------------



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