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Evo-ERP and DBA Classic >> Sales >> Partial Shipment Invoicing
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Message started by treace on 11/01/05 at 06:51:14

Title: Partial Shipment Invoicing
Post by treace on 11/01/05 at 06:51:14

We have a situation that may not be unique to DBA users, so hopefully someone has found a solution.

We have a number of key customers with large orders that request that we ship partials but only provide one invoice. Our policy has been to wait until the last item ships before sending an invoice.

As you know, the finished goods inventory is not relieved until we post the invoice, but this could take weeks. We have chosen to post an invoice for each partial shipment and then delete them and create a new one once the final item ships, however this is creates an accounting mess. Is there another solution or custom code available? Please help.

Thanks, Dave

Title: Re: Partial Shipment Invoicing
Post by tdlugosh on 11/01/05 at 09:09:03

We have a similar situation. Our solution was to go ahead and create invoices for each shipment, but don't send them to the customer. When the order has shipped complete we then make up a dummy invoice (outside of DBA) and send that to the customer. We attatch all the real invoices for tha project to the dummy invoice so that we have back-up when the payment arrives and for auditing. Down side is that accounts receivable aging is always a problem for that customer. We tried future dating each of the real invoices to the expected final invoice date, but that created it's own set of problems. I haven't found a "clean" solution.

Title: Re: Partial Shipment Invoicing
Post by treace on 11/01/05 at 11:43:42

Title: Re: Partial Shipment Invoicing
Post by JNAPIER on 11/01/05 at 12:04:26

treace wrote:

We definitely want to stay within DBA for the invoicing. Any custom program solutions?

If we could show the finished goods "shipped" or removed from inventory, then it would not be necessary to "post" the invoice in DBA.

Thoughts? ???

When we are building a large order that we ship complete, we have a separate location set-up for this so we can transfer the items out of our default factory location. This way no one can see the items during normal order processing. When we process the order to ship, we either transfer it back or enter the sales order with the other location set.

John

-Dave

Title: Re: Partial Shipment Invoicing
Post by Lynn Pantic on 11/01/05 at 12:41:10

The new (and continually evolving) segregated Location capability could perhaps be further developed for this situation. Dave, I know you were looking for a possible custom program solution and I haven't forgotten about it but I am trying to fit as much as possible within the framework of the standard program without customization.

Title: Re: Partial Shipment Invoicing
Post by lmk223a on 11/02/05 at 05:19:46

treace wrote:

To remove finished goods from inventory without posting an invoice, you could use IN-C, the "SHIP" transaction category and use the packing slip as a reference point. The only down side to this, is when you prepare the final invoice, you cannot re-use the inventory part number for previous quantities shipped, because posting the invoice will again deduct the item from finished goods. You could use an A/R voucher for billing previous quantities shipped without affecting inventory.
The down side to this, is neither the inventory adjustment as a shipment, nor the AR voucher will decrease quantities on the open sales order.

Title: Re: Partial Shipment Invoicing
Post by treace on 11/02/05 at 05:50:43

I appreciate the alternatives suggested.

I had not explored the "shipment" adjustment (IN-C) and thought (as I read) that this might be a workable solution, until you mentioned the lack of connection to the Sales Order - ouch.

I like the idea of the second inventory location, but when we experimented with this (in a demo company) we verified that the inventory is still on hand within DBA calculations. So, this confuses the planning side for WO's and PO's. Or, am I missing something about the visibility?

The "segregated location" that Lynn mentioned seems like it would possibly be the cleanest alternative. I agree with trying to stay within the system, and given the frustration level here over the multiple invoices I thought I would ask the users.

Any other ideas, or is there something else with the multiple locations?

Thanks,
-Dave

Title: Re: Partial Shipment Invoicing
Post by JNAPIER on 11/02/05 at 06:26:26

This is true that you still see Units On Hand. You can hit the location button and see where the units are by location. It still isn't a great solution but a workable one at best.

John

Title: Re: Partial Shipment Invoicing
Post by treace on 11/02/05 at 07:27:57

Lynn, would it be possible to make the "Packing List" relieve inventory (like IN-C), but tie the inventory change to be reflected on the sales order?

The other thing that would have to be changed is the reduction of inventory via posting of the invoice. If it is done via the Packing List, it would not need to be done via the posting of the invoice.

This way, the Packing List would drive shipments and inventory relief, and one invoice could be created at the completion of the Sales Order that would not affect inventory.

Is this possible? Could it be a changeable setting in the System Mgr page? Additional thoughts?

-Dave

Title: Re: Partial Shipment Invoicing
Post by treace on 11/10/05 at 05:51:10

Hi Lynn, any further thoughts on this one?

You can answer here or feel free to email me at dave@rickly.com.

Thanks,
-Dave

Title: Re: Partial Shipment Invoicing
Post by Laura Oliver on 11/10/05 at 12:37:13

What about this:
ship and post invoices on schedule, but hold invoices,
after final shipment , go into the original SO and add a unique part # (maybe the customer's PO?) and then create and post a credit invoice totaling all the previous invoices, and then create and post a postive invoice for the total that would be mailed to the customer.

or
ship and post invoices on schedule, but hold invoices,
after final shipment , void all the invoices and then release all lines at one time, creating a new final invoice.

either option keeps your history accurate. option 1 would create an invoice with only 1 line and no detail, where option 2 would show original part numbers and details.

If the shipments were in different months, option 1 would allow you to keep your montly sales figures accurate.

Title: Re: Partial Shipment Invoicing
Post by Lynn Pantic on 11/10/05 at 13:17:17

Dave -

We are improving the "Segregated Inventory Location" - the next update will in fact exclude the segregated Location from the total On Hand when you rebuild stock status. It will also have the ability to enter a different Location on different lines of a sales order. Once that update is released (shooting for this weekend - may be a bit later; still testing a few things), you would be able to do the following:

Use IN-L-M and transfer one or a list of parts to a segregated Location at the time of shipment. The Transfer Sheet could be edited to say "Packing Slip" so you have a document to go with the parts. Then go into SO-A and change the Location of that line (or lines) on the original sales order to the segregated Location so the On Sales Order demand for production is reduced. When you make the final shipment, release the whole order and process the invoice. The items previously shipped will be deducted from stock at the segregated Location.

We could also write a custom program to automatically do all this behind the scenes when you print a packing slip but that would cost money. I would suggest the manual approach first to work out any kinks and get it working the way you want and then if the time savings makes it worthwhile, look into the custom.

Title: Re: Partial Shipment Invoicing
Post by treace on 11/16/05 at 03:51:01

That sounds like an excellent solution!

We are on DBA Classic -- will this upgrade be available for DBA Classic as well as EVO?

Title: Re: Partial Shipment Invoicing
Post by Lynn Pantic on 11/16/05 at 08:24:35

Yes, it will be available for both.