Internal Transfer Pricing Concept in ERPNext

ERPNext
1

Hi All,

When goods are transferred from factory(warehouse A) to Retail Outlet (warehouse B) belonging to same company, we would like to tag internal transfer price for this transfer.

This is needed from the Accounting perspective so that the Profit & Loss of the Retail Outlet.

Any Suggestion on how can we model this in ERPNext?

Thanks,
Saravana

2

Team,

Any update on this?

Any one has used this concept in their implementation?

Thanks,
Saravana

3

I don’t understand what you meant by accounting perspective.Valuation is done per warehouse as per the cost of the item on basis of FIFO or WA .Are you transferring at another price than the cost price?

4

Yes, our factory (warehouse A) is internally selling to Retail outlet (warehouse B) at a different price, than the cost price. This internal transfer pricing is implemented to calculate the cost/profit separately at Retail outlet level.

Is there a standard way to model Internal Transfer pricing as a functionality in ERPNext , where one department will sell to another department (and not just material transfer)?

5

Can you add the difference as a BOM item?

6

You can create the department as customer and create a special price list for that customer then sell to that internal customer. however there are lots of question as to how your accounting will look. if you sell to an internal customer what happen to that inventory? do you retail outlet sell that inventory as the same company? do you have seperate GL for the retail outlet?