Sage 100

Component Parts assembled by Another Plant Sage 100 Std 4.4 - Both East and West Plants fabricate parts to ship directly to Customers. However,the East Plant makes some component parts that gets shipped to the West Plant for assembly and they ship the finished goods to the Customer. The East Plant invoices the West Plant who is setup as a Customer for the parts. The West Plant will never actually pay these invoices. They do this so the East Plant gets credit for revenue and costs of the parts. The West plant now invoices the real customer for the assembled Finished Goods and gets credit for revenue and costs minus the revenue and costs already assigned to the East Plant for the parts. To make this work, the CFO makes a bunch of Journal Entries at the end of each month to get everything in sync. All manufacturing processes are done with an in-house manufacturing software and imported into Sage 100 Sales Order. The West plant does not have Sage 100 installed nor do they have access to it. The East Plant actually does the Invoicing for both plants. The Invoice letterhead based on what plant ships the product is determined by Conditional Statements. They do not use separate Company Codes or Divisions. Revenue and cost for each plant are assigned separate GL Accounts. This may have been manageable when there were only a couple transactions per month but two things have occurred: now we have many transactions per month AND the lady whose responsibility to keep track of the transactions for the CFO retired. Does anyone have any ideas on how to better handle the assignment of revenue and costs to the proper GL Accounts for each plant?

Here is one idea we have implemented for intercompany manufacturing transactions. Would need to setup the West Plant as a company code. West Plant enters a PO for components. Clicks button to run script that creates a SO for the East Plant. East Plant manufactures and creates an SO Invoice. Clicks button that runs script to create a PO Receipt of Goods/Invoice for West Plant. May or may not still need a month end reconciliation report depending on how all GL accounts are setup.

AR to AP clearing. Set up a vendor for the west plant, then clear at month end. I would suggest you find out more about the GL accounts in play. Maybe develop an import to override the GL account assignments if the west coast plan is the customer.