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Requisition From Stock for Promotion
02-07-2018, 11:11 PM,
#1
Requisition From Stock for Promotion
So here is what I hope is a simple question...

We receive a 55-gallon drum of high-value product into inventory. The majority of product is sold to our customers via normal Sales Order method. Some goes with salesmen on the road to use as promotional examples in gallon-sized containers.

What is the best/proper/preferred method to:

+ Requisition the particular product from inventory
+ Charge against GL COA for Marketing Promotions

Any help is greatly appreciated!
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02-07-2018, 11:32 PM,
#2
RE: Requisition From Stock for Promotion
How about the Internal stock request functionality?

It isn't what I really designed it for but seems to meet your needs. You can put in a requisition, this then requires authorising, and then when it is issued it goes to a GL code defined in the stock category.

Tim
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02-07-2018, 11:48 PM, (This post was last modified: 02-07-2018, 11:48 PM by VortecCPI.)
#3
RE: Requisition From Stock for Promotion
Tim,

Thank you and I just saw that now and I am testing it. It does place demand and move product but I have not figured out what happens to the books yet.

Do you happen to know the impact on GL COA when we use this functionality? Does the value just come off the books? Should not the value of the product issued (removed) be placed elsewhere in the books? In my case it would be Marketing promotions but what about things such as consumables for production?

This particular product is both inventory AND promotional, as can be many others.
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02-07-2018, 11:54 PM,
#4
RE: Requisition From Stock for Promotion
Paul, the double entry would be:

DR Issues GL (a P&L account setup in the stock categories maintenance script)
Cr Stock account (to reduce the stock asset).

This assumes that cost is written off to the P&L at the moment the stock is issued to the sales person. If however you want the stock the sales person has to be tracked then you need to setup separate stock locations for them, and do it via a stock transfer request.

Tim
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02-08-2018, 12:19 AM,
#5
RE: Requisition From Stock for Promotion
Tim,

The promotional products, though high-value, will never come back into stock/inventory. The products are consumed during demos and/or left with the customer. The product category should always remain FIN(ished) so it seems to me the Internal Stock Request feature is the best and correct method to move stock/inventory.

I need stock/inventory count and value to come down when the products are issued but I also need GL COA 6150 to go up.

I guess I have a very odd case here. How can I increase 6150? What is the other side of the equation?

Am I over-complicating this?
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02-08-2018, 12:34 AM, (This post was last modified: 02-08-2018, 12:35 AM by TimSchofield.)
#6
RE: Requisition From Stock for Promotion
You can setup a new stock category of stock type 'finished goods' for these items, and then set account 6150 as the "Internal Stock Issues GL Code:" and assign the items to this category.

Then on fulfilment the stock value will be credited (decreased) and the Promotional goods account in the P&L (6150) will be debited (increased) so all your requirements should be met?

Tim
Actually thinking about it you don't even really need a new stock category you could probably just set that account for the stock category that you are already using providing there are no other items in there that you are using for internal requests.
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02-08-2018, 12:41 AM, (This post was last modified: 02-08-2018, 12:41 AM by VortecCPI.)
#7
RE: Requisition From Stock for Promotion
Tim,

Is this what you are speaking of?

   
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02-08-2018, 01:03 AM,
#8
RE: Requisition From Stock for Promotion
Yes, that's the one.
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02-08-2018, 01:55 AM,
#9
RE: Requisition From Stock for Promotion
Okay. Thank you. Will try in just a bit...

Busy creating new Sales Orders and new POs!
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02-08-2018, 11:21 PM, (This post was last modified: 02-08-2018, 11:26 PM by VortecCPI.)
#10
RE: Requisition From Stock for Promotion
Okay... So just to be sure I understand...

For stock that is sold but also issued for promotional sales work...

Change"Issues GL" value from 5700 to 6150 for "FIN" Stock Category.

Or... Alternatively... Create an entirely new Stock Category...

Copy FIN Stock Category to new Stock Category called" PRO"
Change the "Issues GL" value from 5700 to 6150
Set the Category for those items to "PRO"
Issue using Internal Stock Request

The manual does not mention "Issues GL" in the table so I just want to be sure.

   

From a reporting aspect it would seem there may be advantages to the second option.
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