DBD: Reselling Client Owned Inventory

Setup

• Add "Customer Ship-To" with same tax code as warehouse.

  
  

  Note: Use this Ship-To for issuing credits ONLY!

• Use same Product Code on ALL items for this client (ensures GL and report accuracy).
• Consider using new Product Code that represents this reselling program.
• Recommend designated warehouse location is used for this resale program.

Buying Inventory

It’s strongly recommended that this inventory goes to a separate warehouse to isolate and maximize reporting capabilities.

1. Create Sales Order for items, ship to 9001 warehouses (standard).
2. Receive into "Inventory w/AP Invoice" (standard).
3. Invoice Sales Order to bill customer (standard). Initial Tax is charged.

4. 2 Step Inventory Adjustment:

   
   

   a. Use (*) Asterisk in "Reference Number field" to prevent GL adjustment.

   
   

   b. Adjust full quantity out of the 9001 warehouses.

   
   

   c. Adjust full quantity into NEW distributor owned warehouse (#’d 8999 or below).

   
   

   d. Verify Cost equals sell (prevents commission calculation).

Releasing Inventory

1. Enter requisition to location.
2. Invoice requisitions – "Desired Tax is charged based on Ship-To."

3. General Ledger auto activity:

   
   

   a. Credit to revenue – Debit AR.

   
   

   b. Credit NEW Inventory and Debit COS.

Credit memo

Gather the information need to credit the client.

1. Issue Credit memo using "New Customer Ship-To (w/matching tax code)."
2. Entered current months reimbursement. Initial Tax is credited.
3. Last screen of credit memo - General Ledger.

4. Add two additional GL posting records to:

   
   

   a. Credit to Cost of Goods account.

   
   

   b. Debit to NEW Inventory account.

When the credit memo is issued and MATCHES the monthly activity, the net result is a ZERO balance to the new Inventory account.