Enhanced warehouse transfer markup addon
Overview
Use the enhanced warehouse transfer markup addon functionality to enable you to charge a markup percentage or amount at a more granular level than the standard capitalized addon. You can create markup definitions between the shipping and receiving warehouses based on flexible markup types: product, product line, product category, product price type, alternate product group, or none.
This granularity enables you to, for example, retain revenue when you buy in large volumes in the shipping warehouse, and charge an addon to the receiving warehouse. You can also accommodate differences in transport costs dependent on the location of the receiving warehouse.
The markup can be applied to a specified cost: Average, Last, Replacement, and Standard. The markup creates General Ledger bookings as revenue for the shipping warehouse and additional cost for the receiving warehouse.
Use the Markup Addons section in SA Administrator Options-Documents-Transfer Orders-Processing to activate the functionality and to specify markup types, a markup cost, and an override hierarchy.
Use the Transfer Markup Addons Setup function to set up various combinations of markup addons for your company. Based on settings in SA Administrator Options, select a markup type, a warehouse pair, and specify an amount or percentage and the associated value. You must add the Transfer Markup Addons Setup function to the Menu with SA Operator Setup-Function Security.
The enhanced functionality does not negate all existing standard capitalized addons you have already implemented with SA Administrator Options-Products-Costs-Cost Type Assignments and Product Warehouse Description Setup-Extended-Warehouse Transfers. If you create a transfer where no Transfer Markup Addons Setup record exists, then the standard capitalized addons rules apply. However, if a Transfer Markup Addons Setup record exists for a transfer, only the markup addon is applied.
Optionally, you can add flexibility with an override Markup Cost set in Product Warehouse Description Setup-Extended-Warehouse Transfers. The option overrides the company-wide Markup Cost setting in SA Administrator Options-Documents-Transfer Orders-Processing. With the override, you set the override on the receiving warehouse Product Warehouse Description Setup record, and the cost from the receiving warehouse Product Warehouse Product Setup record is used by the system.
When the transfer markup addon functionality is activated, and Transfer Markup Addons Setup records exist, the Line Markup Addons option is displayed as a read-only indicator on these functions: Transfer Exception Receipt Entry, Transfer Shipping Entry, and Transfer Entry.
When activated, and Transfer Markup Addons Setup records exist, the Line Markup Addons section is displayed in Transfer Inquiry-Line Detail-Extended. The Line Markup Addons option is displayed as a read-only indicator in Transfer Inquiry-Totals-Capitalized & Expensed Addons & Order Totals.
When activated, and Transfer Markup Addons Setup records exist, the Markup Addons option is displayed as a read-only indicator in Transfer Demand Center Entry.
When activated, these reports show related markup addon information:
- Product Warehouse Descriptions Master List Report
- SA Company Information Report
- Transfer Audit Report
- Transfer Entry Recommended Replenishment Action Report
- Transfer Master List Report
Workflow
Transfers can be created from:
- Transfer Entry
- Sales Order Entry
- VA Order Entry
- Purchase Entry RRAR Merge Process Report
- Transfer Entry RRAR Merge Process Report
- Sales Entry Import from Tool Crib Report
When a warehouse transfer is created, and markup addons are activated, an indicator is set on the Transfer Entry header. When the indicator is set, capitalized addon values no longer default from Product Warehouse Description Setup and the capitalized addons are read-only. The type is set to amount, and addon amount and net are initially set to zero. The addon amount is updated as lines are added, changed, and deleted.
When a transfer line is added to the system, the hierarchy is used until a match is found. Hierarchy matches are determined based on the markup type from the shipping warehouse. Updates to the transfer record are performed for a match, and include markup type, amount, percent, markup cost type. The addons for each line are calculated and accumulated to the header. For percent addons, the percent is applied to the appropriate markup cost from the receiving warehouse. For products not defined in the receiving warehouse, the transfer line cost is used.
The button in Transfer Entry-Review & Totals triggers an addon recalculation, in addition to the normal update. The hierarchy is used by the recalculation process to determine if any lines qualify for a different markup addon, or if any of the markup addon amounts or percentages have changed.
For example, if Transfer Markup Addons Setup records have been removed, the order may change from markup addons to no markup addons. In this case, the addons default from Product Warehouse Description Setup.
If Transfer Markup Addons Setup records have been added or changed, the existing addons are removed and replaced, as if the markup addon is a new line.
After a transfer line is created, the recalculation process is the only way to update the addon used. Shipping or receiving recalculates a percent addon based on the quantity shipped. At this point, the addon information on the transfer line is used, rather than the hierarchy or Transfer Markup Addons Setup information.
Addons are not stored or calculated on the report lines; however, when the transfer is created when the Transfer Entry Recommended Replenishment Action Report is merged, the line addons will be calculated and accumulated to the header of the transfer.
Transfer shipping updates from Transfer Shipping Entry, and TWL and RF shipping, are recalculated based on the actual quantity shipped. Standard postings are made to the General Ledger.
During Transfer Receipt of Inventory Entry and Transfer Exception Receipt Entry, addon percent is recalculated based on the actual quantity received. Any difference is posted to Addon in Transit and Addon Revenue.
Addon information at the line level can be viewed in Transfer Inquiry. The Line Markup Addons section is displayed in Line Detail-Extended. The Line Markup Addons option is displayed as a read-only indicator in the Totals view, in Capitalized & Expensed Addons & Order Totals.
You can use the Transfer Audit Report to compare warehouse transfer line items to warehouse transfer headers and potentially update the header with totals from the line if an out-of-balance condition occurs. When this report is generated, it automatically assumes the line item information is correct and the transfer header information is incorrect. Transfers in all stages qualify to be audited.
The audit report audits the capitalized addon for line markup addon transfers. In update mode, any discrepancies are updated. If a transfer is in exception state, the header addon is based on the shipped totals, while the line addons are based on received totals. In the latter case, the report calculates the line addons based on shipped amount and does not use the current line addon amount.
Markup addon information is displayed in the Transfer Master List Report in the Other Header Information section and indicates whether markup addons are used. In the Other Line Item Information section, the addon type, addon amount, markup type, markup cost are displayed.