Stock Transfer Concepts
In order to use and understand the multi-location stock system you should be comfortable with the concept of departments. If you have not read these topics you should do so before proceeding.
With a regular invoice, stock is moved out of your inventory system and its location is no longer kept track of because the goods are sold. With a stock transfer, the goods may either be sold or moved, but the location of that stock is maintained. In either case, there are two issues relating to stock that must be resolved:
Where the stock is being taken from.
Where the stock is going to.
The location of the stock is determined by the Department field setting of the transaction. The destination is determined by the account code that the transaction is being issued to. If you bill a standard or cash account--in other words, a "regular" account, then your inventory is moved out of the system. If you bill an internal account/department, then the inventory is moved from one department/location to another.
A transaction that moves stock is referred to as a stock transfer.
Using the Professional Edition of CAPITAL, stock is transferred using the Invoicing System. The Enterprise Edition of CAPITAL has its own dedicated stock transfer facility.
For detailed procedural information on entering stock transfers see the topic Stock Transfers.
You will not be allowed to change the department/location once stock is placed on the transaction. If
you need to change the department/location code, you must remove all stock items from the transaction
first.
During a stock movement, CAPITAL will first try to determine whether the destination location for each stock record exists. If it doesn't exist, a new product will be created for that location. The Stock In quantity will be increased by the quantity recorded on the transfer transaction.
In many cases you do not wish to record a "sale" as having occurred if the transaction involved nothing more than a movement of stock. In these cases you should set the Discount Formula of the department account to zero. The procedure is:
Go into the Customers.
Find the account you wish to change by entering the department/location code you will intend moving stock to.
Move to the page that has the Discount Formula on it.
Enter 0 (zero) in the Discount Formula field.
Save the changes you have made to the record.
All stock placed on these transactions will then have zero sales value. The cost will still be transferred, as it should be, since moving stock does not alter its cost price on a stock transfer.
Moving Stock From Different Locations
An
important note for Professional Edition users: If you
don't specify a department/location as the account of your transfer, then the stock will simply
be removed from the location you have specified (as per the Department
field under the tab). In either case, the Stock In quantity
at the from location will be reduced.
Let's say you have inventory held at three locations:
A retail counter sales area
A warehouse
and a vehicle
You've decided to code these department/locations as RETAIL, MAIN and VEHICLE respectively.
If you wanted to take inventory out of your retail stocks, you would change the Department field under on your transactions to RETAIL.
If you wanted to take stock directly out of your vehicle, you would change the Department field under on your transactions to VEHICLE, and so on.
Remember:
Normally you must do this before you start entering stock codes onto your transaction.
Keep in mind that you cannot normally mix stock from different locations onto a single transaction. If you need to take stock out of two different locations, say MAIN and RETAIL, but produce one invoice containing all the items, you would first have to create a stock transfer to move the stock from MAIN to RETAIL and then invoice with the Department field set to RETAIL.
You can override this behaviour by activating the Permit Multi Locations Per Transaction option found under Stock Control General Options. However, this extra flexibility may come at the cost of reduced accounting controls.
Most
users of the Professional Edition of CAPITAL find it
worthwhile to create a transaction type for the invoicing system called Transfer. This transaction type
is specified at the same time the department/location code is changed. This makes it easier for operators
to distinguish between "normal" transactions and transfer transactions.
You can specify a new transaction type in INSTALLATION Workshop. For more information see the topic: Transaction Sequences Setup.
A set of standard transactions already come pre-defined with CAPITAL. Replace the transaction description with the description "Transfer" for the one you are least likely to use. Be sure that you do not use transaction type 1 (unless your main business involves moving stock rather than selling stock) or transaction type "8" (which is reserved for special purposes).
Be
sure that operators do not assume that specifying a transaction type called Transfer is sufficient to
let CAPITAL know that the user intends moving stock rather than selling stock. CAPITAL will only move
stock if you have specified a department/location as the account code. Simply calling the transaction
a "Transfer" is not sufficient in itself to achieve the desired result.
You
no not need to do the above if you are running the Enterprise
Edition, as CAPITAL comes equipped with a dedicated stock transfer facility selectable from the
main menu, using this version.
Stock Write Off Accounts
Internal accounts are by default excluded from CAPITAL's reporting system. If you wish to record stock adjustments and you do not wish these to directly affect your sales reporting, you can use an internal account for this purpose. Simply ensure that the account of the transaction and the department of the transaction are the same. When both codes are the same, stock is removed from the system, just as would occur with a normal account.
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