Internal Distribution PDF

Internal Distribution
Internal Distribution
Information in this document is subject to change without notice. Companies, names

and data used in examples herein are fictitious unless otherwise noted. No part of this
document may be reproduced or transmitted in any form or by any means, electronic
or mechanical, for any purpose, without the express written permission of Markinson
Technologies Pty. Ltd.
2007 Markinson Technologies Pty. Ltd. All Rights Reserved.
Version 2.3S
Contents
1 Overview of Internal Distribution............................................ 1-1

1.1 Introduction to Internal Distribution ........................................................ 1-1
1.2 Conventions used in this Manual ........................................................... 1-2
1.3 Internal Distribution programs ................................................................ 1-3
2 Internal Suppliers and Customers.......................................... 2-1

2.1 Internal suppliers and internal customers .............................................. 2-1
2.2 Creating an internal supplier .................................................................. 2-2
2.3 Creating an internal customer ................................................................ 2-4
2.4 Checking internal accounts .................................................................... 2-6
2.5 Entity Restrictions in Internal Distribution............................................... 2-7
2.5.1 One supplier for multiple internal customers ............................. 2-8
2.5.2 One supplier for each internal customer.................................... 2-9
2.5.3 Multiple suppliers and customers: no restrictions.................... 2-10
2.5.4 Multiple suppliers and customers with restrictions .................. 2-11
3 Internal Distribution process .................................................. 3-1

3.1 Overview of Internal Distribution process............................................... 3-1
3.1.1 Creating internal purchase order ............................................... 3-2
3.1.2 Transmitting internal purchase order ......................................... 3-3
3.1.3 Generating internal sales order ................................................. 3-4
3.1.4 Generating invoice/pick slip ....................................................... 3-5
3.1.5 Creating local shipment ............................................................. 3-7
3.1.6 Notifying receiving warehouse................................................... 3-8
3.1.7 Receipting local shipment.......................................................... 3-9
3.2 Pricing of stock in Internal Distribution ................................................. 3-10
3.2.1 Price matrix in Internal Distribution .......................................... 3-11
3.3 Deleting an internal order ..................................................................... 3-12
4 Local shipments....................................................................... 4-1

4.1 What is a local shipment? ...................................................................... 4-1
4.2 Using the Local Shipments program ...................................................... 4-3
4.3 Inquiring on a local shipment ................................................................. 4-4
4.3.1 Local Shipment Inquiry <Invoices>............................................ 4-5
4.3.2 Local Shipment Inquiry <Products>........................................... 4-6
4.4 Receipting a local shipment ................................................................... 4-7
4.5 Using the Local Shipment Unpacking List.............................................. 4-8
4.6 Using the Local Shipment Report .......................................................... 4-9
MomentumProInternal Distribution Version 2.3S Page i

Contents
5 Distribution Networks.............................................................. 5-1

5.1 Warehouse entities in Internal Distribution............................................. 5-1
5.2 What is a Distribution Network? ............................................................. 5-2
5.2.1 Remote and local warehouses .................................................. 5-3
5.2.2 Multiple overlapping distribution networks ................................. 5-4
5.3 Warehouse reorder strategies................................................................ 5-5
5.3.1 Pull strategy ............................................................................... 5-6
5.3.2 Push strategy ............................................................................. 5-7
5.4 How to create a Distribution Network..................................................... 5-9
6 Paying internal suppliers ........................................................ 6-1

6.1 Internal accounts .................................................................................... 6-1
6.2 Automatic offset journals ........................................................................ 6-3
6.3 Settling internal accounts by cheque ..................................................... 6-4
6.4 Settling internal accounts using journals................................................ 6-5
7 Reordering................................................................................ 7-1
7.1 Internal Distribution reordering review ................................................... 7-1
7.2 Distribution networks and reordering ..................................................... 7-2
7.3 Purchase Order Run and Internal Distribution ....................................... 7-3
7.4 Purchase Order Processing in Internal Dist ........................................... 7-8
7.5 Spot Orders ............................................................................................ 7-9
8 Frequently Asked Internal Distribution Questions................ 8-1

8.1 Frequently asked internal distribution questions.................................... 8-1
8.1.1 How can I delete backorders on an internal purchase order? ... 8-1
8.1.2 How can I cancel an internal sales order that has gone to
picking? ...................................................................................... 8-1
8.1.3 How can I delete a product from both the internal sales and
internal purchase order? ............................................................ 8-1
8.1.4 How can I delete an internal sales order? ................................. 8-2
8.1.5 How can I print a list of products on an internal shipment in
transit? ....................................................................................... 8-2
8.1.6 How can I move stock from one warehouse to another
without raising a purchase order?.............................................. 8-2
8.1.7 I cant create a new internal customer as the system tells
me there is already one for this warehouse............................... 8-2
8.1.8 Why am I not able to create local shipments when using
internal purchase/sales orders?................................................. 8-2
9 G/L postings in Internal Distribution ...................................... 9-1

9.1 Sales Processing.................................................................................... 9-1
9.2 Local Shipment Dispatch........................................................................ 9-2
9.3 Local Shipment Receipts........................................................................ 9-3
9.4 Debtors Cash Receipts .......................................................................... 9-4
9.5 Debtor Journal Entry Credit Journal....................................................... 9-5
9.6 Debtor Journal Entry Debit Journal ........................................................ 9-6
9.7 Credit Notes ........................................................................................... 9-7
9.8 A/R Sundry Invoices............................................................................... 9-8
9.9 Sundry Credit Notes ............................................................................... 9-9
9.10 Creditor Invoice Entry........................................................................... 9-10
9.11 Creditor Journal Entry Credit Journal................................................... 9-11
9.12 Creditor Journal Entry Debit Journal .................................................... 9-12
9.13 A/P Sundry Credit Notes ...................................................................... 9-13
9.14 A/P Sundry Invoices ............................................................................. 9-14
9.15 Return for Credit................................................................................... 9-15
MomentumProInternal Distribution Version 2.3S Page ii

Contents
10 Glossary of Terms ................................................................. 10-1
11 Index........................................................................................ 11-1
MomentumProInternal Distribution Version 2.3S Page iii

1 Overview of Internal Distribution
1.1 Introduction to Internal Distribution

Internal Distribution is the process of moving products between warehouses within
your organisation. It has no relevance to an organisation with only one warehouse.
Internal Distribution is not a specific module in MomentumPro. It is a way of using
various MomentumPro Modules to track internal ordering, internal sales, reordering
between warehouses and inter-warehouse inventory movements.
This manual assumes that you are familiar with entities, reordering procedures,
purchase orders and sales orders as used in MomentumPro. Further information on
these topics can be found in the Purchasing, Sales Processing and General Ledger
Manuals.
Internal Distribution offers full accountability of internal sales between entities. It
provides paperless ordering between warehouse entities as well as full tracking of
internal purchase orders and internal sales orders. Purchase orders are transmitted
electronically and the corresponding sales order is created automatically at the
receiving warehouse entity. As well, a configuration setting allows for the automatic
creation of pick slips at the supplying warehouse entity.
You are able to transfer stock between your warehouse entities at cost or at cost with a
small markup using a special pricing structure.
Since the Internal Distribution system uses the Purchase Orders program, there is no
need to learn two purchasing systems. The internal selling process uses the Sales
Processing and Open Invoices programs. This again means that there is no need to
learn a separate selling system for internal sales.
The main advantage to be gained from using the Internal Distribution system is time
saved. Most of the steps are automated. The only manual tasks involve raising the
initial purchase order in the receiving warehouse entity, and picking the stock in the
supplying warehouse entity before finalising the internal sale.
MomentumProInternal Distribution Version 2.3S Page 1-1

Overview of Internal Distribution
1.2 Conventions used in this Manual

Keyboard keys are enclosed in square brackets e.g. [Tab], [Enter]
On screen buttons are enclosed in angle brackets e.g. <Option>
Module names are italicised e.g. Inventory Module
Program names are bold and italic e.g. Local Shipments program
Field names are Arial and bold e.g. Entity
Window names are bold and capitalised e.g. LOCAL SHIPMENT ENTRY

Overview of Internal Distribution
1.3 Internal Distribution programs

There is no Internal Distribution Module. However, the following programs in the
Purchasing Module are specific to the Internal Distribution process.
Menu Program Page number

Inquiry Local Shipment Inquiry 4-4
Operation Local Shipment Receipts 4-7
Maintain Local Shipments 4-3
Distribution Networks 5-9
Reports Local Shipment Report 4-9
Local Shipment Unpacking List 4-8

2 Internal Suppliers and Customers
2.1 Internal suppliers and internal customers

One of the key components of the Internal Distribution system is the concept of
internal suppliers and internal customers.
An internal supplier or an internal customer is in contrast to an external supplier or
an external customer. External accounts are the standard accounts used to sell to, or
purchase from, organisations outside your company. An internal account is an account
used to record trade and activity within your organisation.
For example, if you wish to order stock from another warehouse entity within your
organisation, you need to have an internal supplier to represent the supplying
warehouse entity. You also need to have an internal customer to represent your
receiving warehouse entity.
Once you have both an internal supplier and an internal customer you are able to buy
and sell between warehouses as internal purchase orders and internal sales orders are
the same as external ones.

Internal Suppliers and Customers
2.2 Creating an internal supplier

Internal creditors/suppliers are created in the same way as an external
creditor/supplier. In the Accounts Payable Module, use the Creditor/Supplier Master
program [Accounts Payable:Maintain:Creditor/Supplier Master] to <Add> a
creditor/supplier.
The internal creditor type is set on the <Details> screen using the Combo box. Choose
Internal from the drop-down list. Since the Internal Distribution system uses email to
transmit purchase orders, it is important to enter a valid email address for this internal
supplier. The internal suppliers email address would normally be that of a warehouse
entity supervisor.
Once you have selected Internal as the creditor type, the warehouse entity field (W/H)
becomes enabled. You are required to enter the supplying warehouse entity i.e. the
warehouse from which this internal supplier takes his stock.
You should select Email as the Advise method. Internal purchase orders can be
transmitted by email to the supplying warehouse.
Tax Incl Buy Prices, Tax Incl Base Price and Tax on Purchases should all be
turned off if you are selling at cost between warehouses. The setting to allow back
orders should be set the same as the internal customers setting.
You may also wish to <Restrict> the internal creditor to an entity or an entity view. If
you have a number of warehouse entities and wish this internal supplier to be
available to all your warehouse entities and you have Enforce Entity on Creditor
turned on (in the A/P System Configuration program), you should <Restrict> this
internal creditor to an entity view rather than an entity.

If you have a number of warehouse entities and wish this internal creditor to only be
available to one warehouse entity and you have Enforce Entity on Creditor turned
on, you should <Restrict> this internal creditor to the entity of the warehouse to be
supplied.
Note: If you are creating more than one internal supplier for the warehouse entity, you
should use the <Restrict> option before setting the supplier type to Internal.

2.3 Creating an internal customer

Internal customers are created in the same way as an external customer. In the
Accounts Receivable Module, use the Customer Master program [Accounts
Receivable:Maintain:Customer Master] to <Add> a customer. Since the Internal
Distribution system uses email to transmit shipment dispatch details, it is important to
enter a valid email address for the internal customer.
The internal customer type is set on the <Details> screen using the Combo box.
Choose Internal from the drop-down list.
Once you have selected Internal as the customer type, the warehouse entity field
(W/H) field is enabled. You are required to enter the receiving warehouse entity i.e.
the warehouse entity to which the stock is delivered.
You should select Email as the Advise method as shipment dispatch details can be
emailed to the receiving warehouse. The setting to allow back orders should be set the
same as that of the internal supplier. The internal customer and the internal supplier
should also have the same tax statusthey should either both pay tax or both not pay
tax.
You may wish to <Restrict> the internal customer to an entity or an entity view. If
you have Enforce Entity on Debtor turned on (in the A/R System Configuration
program) and you wish this internal customer to be able to buy from all your
warehouse entities, you should <Restrict> this internal customer to an entity view
rather than to an entity.

If you have Enforce Entity on Debtor turned on and you wish this internal customer
to be able to buy from a specific warehouse entity, you should <Restrict> the internal
customer to the entity of the supplying warehouse entity.
Note: If you are creating more than one internal customer for the warehouse entity,
you should use the <Restrict> option before setting the customer type to Internal.

2.4 Checking internal accounts

Once you have set up internal suppliers and internal customers, you can check these in
the Entity Master programs <Internal> option [General Ledger:Maintain:Entity
Master]. This lists the internal suppliers and internal customers that have been set up
for the nominated entity.
You are shown the Type, which sales entity the customer or supplier is restricted to
(Owned By), the Account Number and its Name. Drilling down on a line takes you
to the appropriate inquiry program.

2.5 Entity Restrictions in Internal Distribution

If you do not enforce an entity on either a creditor or a debtor, your internal suppliers
and internal customers can order and purchase freely from each other.
However, if you are enforcing an entity on either or both creditors and debtors, or if
you wish to strictly control which internal customer can buy from which internal
supplier (for reconciliation purposes for example), there are three possible scenarios.

2.5.1 One supplier for multiple internal customers
Scenario one is the situation where one internal supplier supplies multiple warehouse
entities.
Each receiving warehouse entity must have its own internal customer.
If these internal customers are to be permitted to only purchase from the one internal
supplier (in this case InternalSupplierB1), they must be restricted to the entity of the
supplying warehouse (B1 in this example).

2.5.2 One supplier for each internal customer
The second scenario shows that greater control can be exercised over the Internal
Distribution process by restricting each internal customer to purchasing from their
own internal supplier at the supplying warehouse entity.
The internal customers must be restricted to the entity of the supplying warehouse.
The internal suppliers are restricted to the entity of the receiving warehouse.
This situation makes it relatively simple to reconcile accounts at the end of each
month as each internal supplier has only one customer.

2.5.3 Multiple suppliers and customers: no restrictions
The third scenario is the situation where all warehouse entities can purchase from all
other warehouse entities. This requires that each warehouse entity has both an internal
supplier and an internal customer.
The diagram above shows this situation with no entity restrictions in place. Each of
the internal customers can buy from each of the internal suppliers.

2.5.4 Multiple suppliers and customers with restrictions
The same situation of multiple suppliers/customers can also be strictly controlled with
entity restrictions, as shown in the following diagram.
This allows you maximum control over the Internal Distribution system. Each internal
customer has only one internal supplier to purchase from, and each internal supplier
can only supply one internal customer.
If you wish to have this degree of control, you must set up one internal customer and
one internal supplier for each warehouse entity in your organisation.

3 Internal Distribution process
3.1 Overview of Internal Distribution process

The Internal Distribution process can be seen in the following diagram.
Internal
1 Purchase Order
Warehouse A 5432
(Receiving warehouse) Product 1
7 Receipting Product 2
Product 3
Notification
6
TRANSMIT 2
5 Local Shipment
Internal Sales Order 5432

Invoice/Pick Slip Product 1
Product 1 4 Product 2
Product 2
Product 3 Warehouse B
(Supplying warehouse)

Internal Distribution process
3.1.1 Creating internal purchase order
The Internal Distribution process starts with the receiving warehouse creating a
purchase order on an internal supplier using the Purchase Orders program
[Purchasing:Operation:Purchase Orders].
The purchase order automatically becomes an Internal purchase order when the
supplier is an internal supplier. Internal purchase orders use a different numbering
sequence from normal purchase orders to clearly identify them as being internal.
When creating an internal purchase order, you should ensure that the entity on the
purchase order is that of the receiving warehouse i.e. the warehouse entity placing the
order.
Products are added as normal. A warning is given if the suppliers stock would fall
below the safety stock level, providing safety stock levels have been set for the
products. Any comments entered when selecting products are transferred with the
purchase order and can be viewed when drilling down on the lines.

3.1.2 Transmitting internal purchase order
Internal purchase orders must be transmitted using the <Transmit> option. This
automatically generates an email message informing the supplying warehouse entity
of the internal purchase order number, which then becomes the internal sales order
number.
For the order to be transmitted, the status must be Ready to Send. You are able to
edit the message before it is transmitted if required.
Once the internal purchase order has been transmitted, it is not possible to alter it. If
you wish to order additional products you must raise another internal purchase order.
The status of the purchase order is shown in the bottom right corner of the Purchase
Orders program [Purchasing:Maintain:Purchase Orders]. A purchase order with a
status of Transmitted cannot be deleted.

3.1.3 Generating internal sales order
An internal sales order is generated automatically at the supplying warehouse when

the internal purchase order is received. This internal sales order uses the internal
purchase order number as its customer purchase order number.
You are able to view the details of the internal sales order in the Sales Orders
program [Sales:Maintain:Sales Orders]. You can locate the sales order by carrying out
an F11 [Search] on the S/Order field.
Because it is an internal sales order, it is not possible to change the sales order in any
way. If you attempt to drill down on a product line, you receive a message to this
effect.

3.1.4 Generating invoice/pick slip
The option to Auto Print P/Slips in the Entity Master program [General
Ledger:Maintain:Entity Master] determines the steps to follow next.
If this setting is on, the internal sales order is processed in the Open Invoices program
[Sales:Operation:Open Invoices]. You are able to over supply the product lines for an
internal customer even when the product is not flagged to allow over supplying. This
allows you to be supply internal orders with more appropriate quantities depending on
stock packaging, space availability and so on. If more items are picked than were
initially ordered, the supplied quantity on the internal sales invoice is increased.
Completing the sale in the Open Invoices program automatically creates a local
shipment, if the warehouse entities are defined as being remote. A remote
warehouse entity is one where the physical location of the warehouse from the
dispatching warehouse requires some time for the goods to be dispatched and
received. Warehouses are remote by default. An email notification is sent to the
originating (or receiving) warehouse entity that the local shipment has been
dispatched.
If the Auto Print P/Slips setting is off, the internal sales order is processed using the
Sales Processing program [Sales:Operation:Sales Processing]. Entering the internal
customer and the internal sales order number as the Customer P/O number results in
the sales order lines being loaded into the program. The sale can then be completed as
usual. It is not possible to over supply an internal order in the Sales Processing
program.

The different process, depending on the Auto Print P/Slips setting, is shown in the
diagram below.
Note: If the internal purchase order is raised with a due date other then the current
date, when the order is transmitted, a pick slip is not automatically created. A sales
order is created with everything on backorder. The sales order then needs to be
recalled using the Sales Processing program or a customer back order run can be used
to create a pick slip for the stock.

3.1.5 Creating local shipment
If the Auto Print P/Slip setting in the Entity Master program [General
Ledger:Maintain:Entity Master] is off, a LOCAL SHIPMENT ENTRY window is
shown when the internal sales order is finalised in the Sales Processing program
[Sales:Operation:Sales Processing]. Otherwise it is shown when the sales order is
finalised in the Open Invoices program [Sales:Operation:Open Invoices].
Here you are able to enter freight information including the number of cartons and
pallets. If further invoices are to be added later, you can leave the shipment open. If
there is already an existing local shipment to the same receiving warehouse entity, the
new shipment is allocated to it. Otherwise a new local shipment is created. You can
finalise the local shipment at this time, or dispatch the shipment using the Local
Shipments program [Purchasing:Maintain:Local Shipments] later.
After confirming, you are given the shipment number.

3.1.6 Notifying receiving warehouse
Once a shipment has been dispatched, an email notification is automatically generated

to be sent to the receiving warehouse entity. This email notification includes the local
shipment number, thus enabling the receiving warehouse entity to inquire on the status
of the shipment.

3.1.7 Receipting local shipment
When the stock arrives at the receiving warehouse, it is receipted using the Local
Shipment Receipts program [Purchasing:Operation:Local Shipment Receipts].
<Details> allows you to view the lines on the local shipment although there is no drill
down available. If products are bin tracked, <Put Away> allows you to alter the
default bin.
The local shipment is finalised using <Receipt>. After the shipment has been
receipted, the stock is released so that it can be processed and sold as normal.

3.2 Pricing of stock in Internal Distribution

If your warehouse entities are defined as being remote, you may incur considerable
freight expenses in transferring stock. MomentumPro allows you to set up an internal
customer price code which can be allocated to all internal customer accounts. This
internal customer price code can then be used to include freight costs. The internal
customer price code is different from the default customer price code allocated to
external customer accounts. It is possible to set up a price matrix to suit your internal
requirements using this internal customer price code and the product price code. If
you do not set up a price matrix, stock is transferred at cost between any two internal
warehouse entities.

3.2.1 Price matrix in Internal Distribution
A price matrix forms an association between a product price code and a customer
price code in the form of a two dimensional matrix, one side being product price code
and the other side being the customer price code.
You can use the customer price code created for your internal customers and associate
this customer price code with some or all of your product price codes to create price
matrices. You are able to set your pricing to be cost-plus in a price matrix. This means
that you are able to set a small percentage to cover transfer costs.
Refer to the Pricing Manual for further details on setting up a price matrix.

3.3 Deleting an internal order

Once an internal purchase order has been transmitted it is not possible to alter that
order by changing the purchase order. This is a feature of MomentumPro and prevents
the order from being updated whilst it is being filled at a another sales location.
You can however update both the sales order and purchase order by updating the sales
order using either the Sales Processing program [Sales:Operation:Sales Processing]
or the Open Invoices program [Sales:Operation:Open Invoices].
For example if you are not going to supply an item requested by an external branch or
the external branch no longer wish you to supply the product, you can alter the
supplied quantity to zero and the backordered quantity to zero. An email notification
is automatically generated for the receiving warehouse, informing the warehouse that
the product is not being supplied and has been taken off backorder. The invoice must
then be completed, creating a local shipment.
When the invoice is finalised and the local shipment is receipted, the purchase order is
updated to show the item as no longer being on order. (If the supplied and
backordered quantities are changed in the Sales Processing program, neither an
invoice nor a local shipment is created.)

4 Local shipments
4.1 What is a local shipment?

A local shipment is a term used to describe a group of items being sent from one
warehouse entity to a remote warehouse entity.
The shipment can contain multiple invoices, with multiple lines on each invoice, or it
can consist of a single invoice with either a single line or multiple lines. For example,
each of these is a valid local shipment:
Invoice #A103
Line 1..
Line #A102
Invoice 2..
LineLine 3..
1..
LineLine 4..
2..
Invoice #A101
Line
Line 3..
1..
Line 4.. Shipment 1
Line 2..
Line 3..
Line 4..
Invoice #A104
Line 1..
Line 2..
Shipment 2
Line 3..
Line 4..
Invoice #A105
Line 1.. Shipment 3
A local shipment is created when an internal sales order for a remote warehouse is
finalised.
The local shipment can include partially filled as well as completed internal sales
orders that are consolidated into the one shipment. The shipment can be inquired on in
the Local Shipment Inquiry program [Purchasomg:Inquiry:Local Shipment Inquiry].

Local shipments
If further invoices are to be added later, you are able to leave the shipment open.
Invoices can be added to a local shipment when another internal sales invoice is
processed. If there is an open local shipment, you are able to choose to add this sales
order to the open shipment.
If there are multiple local shipments open, the message Multiple Open Shipments is
displayed in the lower right hand corner of the screen. This alerts you so that you are
able to select the appropriate shipment to add to.
If you elect to leave a shipment open, you are presented with a warning to this effect.

Local shipments
4.2 Using the Local Shipments program

A local shipment is automatically generated when an internal sales order is completed
in either the Sales Processing [Sales:Operation:Sales Processing] or the Open
Invoices programs [Sales:Operation:Open Invoices]. This means that you do not have
to use the Local Shipments program [Purchasing:Maintain:Local Shipments] unless
you wish to:
Dispatch the local shipment if this has not occurred in the Sales Processing or the
Open Invoices programs.
Modify details of a local shipment.
Delete local shipments that are empty.
Create a new local shipment.

Local shipments
4.3 Inquiring on a local shipment

The Local Shipment Inquiry program [Purchasing:Inquiry:Local Shipment Inquiry]
allows you to inquire on all details relating to a specific local shipment. The program
shows you the status of the local shipment, which can be one of In Transit, Packing
or Finalised. Finalised shipments are not shown with <Next> and <Prev> but must be
entered with their shipment number.
<Next> and <Prev> only cycle you through the local shipments at the nominated To
Warehouse entity.

Local shipments
4.3.1 Local Shipment Inquiry <Invoices>
<Invoices> allows you to view the invoices allocated to the selected local shipment.
Drill down facilities are available.

Local shipments
4.3.2 Local Shipment Inquiry <Products>
<Products> allows you to view the products that are on the selected local shipment.
No drill down is available from this option.

Local shipments
4.4 Receipting a local shipment

The Local Shipment Receipts program [Purchasing:Operation:Local Shipment
Receipts] allows you to receipt stock that has been sent as a local shipment, using the
Internal Distribution system.
You are able to view the lines on the invoices in the local shipment using <Details>.
No drill down is available in this window.
If any of the products on the local shipment are bin tracked, you are able to change the
assigned bin using <Put Away>.
The local shipment is finalised using <Receipt>.
If you have the option to Print Unpacking Report turned on in the Purchasing Sys
Configuration program, you are able to print the Local Shipment Unpacking List
directly from the product confirmation screen, to verify that the local shipment is
correct. If any corrections need to be made, these can be made using the Stock
Adjustments program.

Local shipments
4.5 Using the Local Shipment Unpacking List

The Local Shipment Unpacking List [Purchasing:Reports Local Shipment Unpacking
List] in the Purchasing Module prints an unpacking list for receipted stock on a
specific local shipment. The list is run after a receipt has been processed for an
internal supplier.
The list identifies those items that should be put away on the shelves and those items
that have been committed to backorders. This eliminates the unnecessary work of
putting all the stock away and then repicking it for backorders.
The list is produced for a specific shipment number. You are able to choose to print
details regarding commitments associated with orders. You are also able to print the
bin locations. The list can be sorted by product code or by supplier product.
When run, the list shows the products (codes and descriptions), product group,
purchase order number/s, the buying quantity and unit, the number to put away, the
number on backorders, the number committed and the stocking unit.

Local shipments
4.6 Using the Local Shipment Report

The Local Shipment Report [Purchasing:Reports Local Shipment Report] prints a list
of local shipments for a specific receiving warehouse entity.
The report can be produced in a summary or a detailed format. The summary format
prints a one line entry for each shipment. This gives the key shipment details, such as
Carrier and ETA. The detailed format prints most details relating to the shipment.
You can produce the report for all local shipments going to the receiving warehouse
entity. Alternatively, you can narrow the scope of the report by using the report
criteria such as a nominated date range.
You are also able to run the report for a single shipment.

5 Distribution Networks
5.1 Warehouse entities in Internal Distribution

Internal Distribution involves warehouse entities that are also sales entities. A
warehouse entity is basically an entity where stock is held. In a large organisation
there may be more than one warehouse entity. These may be located in close
proximity to one another or they may be remote from each other.
A sales entity is an entity that is used for sales analysis purposes. Within Internal
Distribution, it is usual to define each warehouse entity as also being a sales entity.
You may define any number of warehouse entities within your organisation. A
warehouse entity may not necessarily be a physical building. For example, you may
have a bulk store and a main store, both in the one building. Both of these can be set
up as warehouse entities so that you can control the stock quantities at each location.

Distribution Networks
5.2 What is a Distribution Network?

If you have a multiple warehouse entity organisation, you may wish to define a
distribution network. A distribution network links those warehouse entities within
your organisation that may be treated as a group from the point of view of purchasing
and distribution. Distribution Networks are only relevant to a multi-warehouse
organisation.
A Distribution Network also includes a description as to whether the warehouse
entities are remote or local to the main warehouse entity. If you do not use a
Distribution Network, it is assumed that your warehouse entities are remote. If you
choose not to define a Distribution Network you are still able to use the Internal
Distribution system.

5.2.1 Remote and local warehouses
A remote warehouse entity is one where the physical location of the warehouse from
the main warehouse requires some time for the stock to be dispatched and received.
A local warehouse entity could be a sub-warehouse or a parts store within the same
building or complex. The movement of goods from the main warehouse to the local
warehouse can take place immediately since no distance is involved.
The Internal Distribution system uses the position of the warehouse (remote or local)
to determine whether transfers between two warehouse entities occur immediately (if
they are local) or go via a local shipment (if they are remote).
MAIN warehouse
WH-1 Minor
Warehouse
WH-5
Minor Minor Minor

Warehouse Warehouse Warehouse
WH-2 WH-3 WH-4
In the diagram above, a movement of stock between WH-1 and WH-5 would not raise
a local shipment as the two entities are not remote from one another. However, a
movement of stock between WH-1 and WH-2, WH-3 or WH-4 would raise a local
shipment as these entities are remote from each other.

5.2.2 Multiple overlapping distribution networks
There may be reason to set up multiple overlapping Distribution Networks in the same
organisation. This can occur if one warehouse entity is the distributor of a particular
product range but is a sales outlet for others. In other words, the same warehouse
entity could be involved in different networks and with different allocated main
warehouse entities.
The diagram above shows Warehouse A belonging to two distribution networks:

Distribution Network 1 with Warehouses B and C and Distribution Network 2 with
Warehouses A, D, E and F. In Distribution Network 1, Warehouse C is the main (or
supplying) warehouse; in Distribution Network 2, Warehouse D is the main (or
supplying) warehouse.

5.3 Warehouse reorder strategies

When creating a distribution network in the Distribution Networks program
[Purchasing:Maintain:Distribution Networks], each distribution network must be
designated a warehouse strategy.
There are two basic strategies available in MomentumPro: a pull strategy and a push
strategy. The strategies are used in reorder processing when reordering for the entire
distribution network. The strategy used tells MomentumPro how the relationship
between the minor (receiving) warehouses and the main (supplying) warehouse
operates.

5.3.1 Pull strategy
A pull strategy is a decentralised supply system for the distribution network. It

involves the receiving warehouse entities determining their own stock levels and
pulling the stock from the supplying warehouse. It basically implies that the receiving
warehouses have the autonomy to make their own purchasing decisions.
In the case of a pull strategy, the supplying, or main, warehouse entity assumes that
the orders placed on it by the receiving warehouses are accurate and therefore are to
be included in the overall group orders to external suppliers. If a minor warehouse has
incorrectly ordered, or forgotten to order, the mistake flows on to the consolidated
order.
Therefore, when the supplying warehouse entity is processing a centralised order to
cover supply for the distribution network, it simply looks at its own stock situation
and all the orders that have been placed on it. It then orders the appropriate amount of
stock.
A pull strategy does not look at the actual sales of the receiving warehouse entities.
In the diagram above, there are three minor warehouse entities placing orders on the
main warehouse for a total of 19 of an item. In addition, the main warehouse has a
total of 10 external sales orders and a safety stock of 5. Assuming no quantity on
hand, the main warehouse entity needs to purchase 34 to cover the requirements of the
entire pull distribution network.
Forecast sales at the minor warehouse entities are ignored.

5.3.2 Push strategy
A push strategy is a centralised supply system for your warehouse stock. The
decisions of what, how many, when and where to ship stock are made from a central
locationthe supplying warehouse entity.
The stock is purchased at the main warehouse entity and pushed out to the receiving
warehouses. The stock requirement decisions are made by the supplying warehouse
entity on behalf of the receiving warehouse entities.
When computing a reorder quantity, the push strategy ignores orders placed by the
receiving warehouses on the supplying warehouse and instead looks at the actual
forecast external sales of each warehouse entity.
Using the same figures as before, the three minor warehouse entities have forecast
sales of 23 for an item. In addition, the main warehouse has a total of 10 external sales
and a safety stock of 5.
Assuming no quantity on hand, the main warehouse entity needs to purchase 38 to
cover the requirements of the entire push distribution network.
Internal orders at the minor warehouse entities are ignored.
If a main warehouse is set up be a distribution hub only, the main warehouse is only
used to facilitate the consolidation of branch orders and does not maintain a level to
stock to cover future branch orders. The branch requirements are determined
individually using the separate reorder configuration settings for each branch as well
as the suppliers lead times.

The following table presents a simplified example of the individual warehouse

requirement quantities and the total network order quantity that would occur when the
new setting is activated with a suppliers lead time of 60 days.
Warehouse Stock Available Ideal Receipts Requirement

cover (quantity Stock due (quantity)
(days) ) (quantit (quantity)
y)
Main W/H 30 0 0 0 0
Branch 1 30 10 15 0 20
Branch 2 7 2 5 5 36
Network Order Total: 56

5.4 How to create a Distribution Network

Distribution Networks are created, modified and deleted in the Distribution Networks
program [Purchasing:Maintain:Distribution Networks].
1. Choose the Distribution Networks program.
2. Click <Add>.
3. Type a code of up to three characters.
4. Click <OK>.
5. Enter a Description of this network.

6. Enter the Main Warehouse i.e. the supplying warehouse.
7. Select the Warehouse Reorder Strategy to use.

8. Click <Add> on the right hand side of the screen to add a warehouse to the
distribution network.
9. Select the Remote box if the warehouse is remote from the main warehouse.
10. <OK>.
11. Repeat steps 810 for each minor (receiving) warehouse in the distribution
network.
12. Click <Save> when all the warehouses have been added.

6 Paying internal suppliers
6.1 Internal accounts

MomentumPro records internal transactions in separate accounts in the Chart of
Accounts. This means that internal transactions are not automatically included when
you run any of the analysis programs in the Sales Processing Module.
A number of these programs, such as the Customer Sales Report
[Sales:Reports:Sales Analysis:Customer Sales Report] and the Entity Sales Report
[Sales:Reports:Sales Analysis:Entity Sales Report] have an option that allows them to
be run for internal customers only. Programs such as A/R Management Analysis
Accounts Receivable:Inquiry:A/R Management Analysis] and A/P Management
Analysis [Accounts Payable:Inquiry:A/P Management Analysis] allow you to specify
the customer/creditor type. If you choose internal you are able to analyse internal
debtors and internal creditors.
Internal debtor and internal creditor accounts have balances recorded against them.
Because they are flagged as internal accounts, they are not included in the normal
Trial Balances. However, you are able to prepare an A/R Trial Balance [Accounts
Receivable:Reports:A/R Trial Balance] and an A/P Trial Balance [Accounts
Payable:Reports:A/P Trial Balance] for internal accounts only.

Paying internal suppliers
Transferring stock from one warehouse entity to another warehouse entity using
Internal Distribution requires that the receiving warehouse entity (the internal
customer) pays the supplying warehouse entity (the internal supplier). This should be
done on a monthly basis.
There are three possible procedures that can be used to settle internal accounts:
Automatic offset journals
Payment by cheque
Payment by journal entry

6.2 Automatic offset journals

There is a setting, Auto Offset Internal Accounts, in the Internal Dist.
Configuration program, which if turned on, automatically creates credit journal
transactions on the internal debtor and the internal creditor accounts, when the goods
are receipted at the receiving warehouse.
If turned on, this setting eliminates the need to settle internal accounts. This is then
done automatically as part of the Internal Distribution process.
Note: RFCs and credit notes are not included in the automatically created offset
journals.

6.3 Settling internal accounts by cheque

The simplest procedure to settle internal accounts involves a standard cheque payment
process. This method is mainly used when the warehouse entities are to be treated as
separate operating entities.
1. Obtain the outstanding balance for the internal creditors account.
2. The internal customer (the receiving warehouse entity) releases that amount for
payment using the Release Payments program [Accounts Payable:Operation:Release
Payments]. This uses the same procedures as for a normal creditor.
3. A dummy (or an actual) cheque is drawn for the outstanding amount using the
Creditors Payment Run [Accounts Payable:Operation:Creditors Payment Run] or the
Payment Entry programs [Accounts Payable:Operation:Payment Entry].
4. The cheque generated in step 3 is then receipted by the internal supplier (the
supplying warehouse entity) for the internal customer using the Debtor Cash Receipts
program [Accounts Receivable:Operation:Debtor Cash Receipts].
Note: It is best to use a payment type for the payment and receipt that will not appear
on the bank deposit slip. You will also need to ensure that both the payment and the
receipt are reconciled against each other in the normal bank reconciliation processes.

6.4 Settling internal accounts using journals

1. Obtain the outstanding balance for the internal creditors account.
2. Create a creditors credit journal entry for the amount outstanding for the internal
creditor. Leave this amount unallocated.
3. Use the Apply Unallocated Transactions program [Accounts
Payable:Operation:Apply Unallocated Transactions] to allocate this amount to the
internal invoices.
4. Create a debtors credit journal entry for the same amount for the internal customer.
5. Use the Apply Unallocated Trans program [Accounts Receivable:Operation:Apply
Unallocated Trans] to allocate this amount to the internal invoices.

7 Reordering
7.1 Internal Distribution reordering review

It is possible to use the Purchase Order Processing program
[Purchasing:Operation:Purchase Order Processing] to automatically analyse and
place orders on a supplying warehouse entity.
The Purchase Order Processing program aims at maintaining stock levels to meet
customer demands whilst also enabling the warehouse entity to carry an optimal level
of stock. Ideal stock levels vary from product to product. Details of how
MomentumPro calculates ideal stock are available in the Purchasing Manual. This
chapter is concerned only with reorder processing as it relates to Internal Distribution.

Reordering
7.2 Distribution networks and reordering

Distribution networks affect the forecast calculation. How the forecast is calculated
depends on whether the distribution network is set up with a push or pull strategy.
If you have a pull strategy in place, only the external sales of the main (supplying)
warehouse entity are considered. Sales at minor (receiving) warehouse entities are
ignored. It is assumed that the minor warehouse entities have reviewed their internal
orders and placed accurate orders on the main warehouse entity. A pull strategy is
therefore a decentralised supply system.
If you are using a push strategy, the external sales of all warehouse entities are
considered. Quantities on hand at all the warehouse entities in the distribution network
are taken into account. Internal sales orders are ignored but the actual forecast external
sales of all the warehouse entities in the distribution network are taken into account
when calculating the reorder quantity. A push strategy is therefore a centralised supply
system. The decision making is made by the main (supplying) warehouse on behalf of
the minor (receiving) warehouse entities.

Reordering
7.3 Purchase Order Run and Internal Distribution

The Purchase Order Run program [Purchasing:Operation:Purchase Order Run]
allows you to carry out the intensive system calculations necessary for reorder
processing in the background. It can also be run after hours for overnight preparation
of purchase orders. If you are preparing several runs for multiple warehouse entities,
you are able to set up multiple batch reorder processing runs to happen
simultaneously.
For example, it may suit your requirements to run batch reorder processing for every
warehouse every night. Alternatively, you may prefer to do this only once or twice a
week.
The Purchase Order Run program allows you to fully automate the creation of an
internal purchase order and the transmission to the supplying warehouse entity.
The Purchase Order Run program can be run for a distribution Network if you are
using one. If a distribution network is entered, the Warehouse Entity must be the
main warehouse entity for that distribution network.

Reordering
The Supplier entered should be the internal supplier for the supplying warehouse.
You are able to limit the purchase order run to particular Product Groups if required.
You can also select to Analyse Outstanding Customer Orders Only.

Reordering
There are three levels of reorder processing available to you.

The first allows you to use the Purchase Order Run program to only create the
purchase order run. If you select this level of processing, you can later recall the
unfinalised purchase order run in the Purchase Order Processing program
[Purchasing:Operation:Purchase Order Processing] where you can review and then
raise the purchase orders.
The second level allows you to create both the purchase order run and the purchase
orders themselves. You can then transmit the purchase orders at a time convenient to
you.
The third level allows you to create and transmit the purchase orders. Using the
Internal Distribution system, the corresponding sales order and the corresponding pick
slips (the latter is dependent upon the Auto Print P/Slips setting being turned on for
the supplying warehouse) are created in the supplying warehouse. This is normally
done overnight so that the next morning the warehouse staff have the pick slips ready
to pick the stock and ship the order.

Reordering
You are then required to select whether to run the task in batch or save it to a batch
suite. If you add the Purchase Order Run program to a Recurring batch suite with
selections appropriate to internal reordering, you are able to fully automate the
reordering process.
If you elect to run the purchase order run task in batch, you are required to enter a
Start Time, a Date and an Email Address. The program defaults the start time and
date to the current time and date.

Reordering
If you elect to save the purchase order run in a batch suite, you are required to enter
the name of the batch suite.
The final step requires that you enter your User ID and an optional PIN.

Reordering
7.4 Purchase Order Processing in Internal Dist

The Purchase Order Processing program [Purchasing:Operation:Purchase Order
Processing] within the Internal Distribution system can be used to automatically
create suggested reorder quantities of selected products and then raise the required
internal purchase orders.
If a distribution network is entered, the Warehouse must be the main (supplying)

warehouse of that distribution network. The supplier should be the internal supplier
for the supplying warehouse.
You can <Add> a product. You can enter selection <Criteria> for the reorder
calculations or you can <Load> product items in bulk using the selection criteria in
this window.
Once the products have been loaded, click <OK>. The system then generates the
purchase order.
You are then able to select to <Transmit> this purchase order. Since this is an internal
purchase order, an email notification is automatically generated.

Reordering
7.5 Spot Orders

It is sometimes necessary to generate spot orders. A spot order is when you place an
order outside of the reorder processing run. This order is then transmitted to the main
supplying warehouse entity.
1. Raise an internal purchase order
A purchase order becomes an internal purchase order, with a different numbering
sequence from external purchase orders, by using an internal supplier for the goods.
2. Transmit
The internal purchase order must be sent electronically to the supplying warehouse
entity. This is done using <Transmit> in the Purchase Orders program
[Purchasing:Operation:Purchase Orders]. This automatically creates an email
message for the internal supplier located at the supplying warehouse. Included in the
email notification is the internal purchase order number which becomes the internal
sales order number. You are able to edit this message before it is transmitted if
required.
Once the internal purchase order has been transmitted, it is not possible to alter it. If
you wish to order additional products, you must raise another internal purchase order.
3. Creation of internal sales order
The transmitting of the internal purchase order automatically creates an internal sales
order at the supplying warehouse. The internal sales order number is the same as the
internal purchase order number.
When an internal purchase order is raised on a supplying warehouse, the system
automatically looks for an internal customer in the receiving warehouse entity. If the
system cannot find an internal customer, the Internal Distribution process does not
take place. You must have corresponding internal suppliers and internal customers at
each end of the Internal Distribution process.
4. Invoice/Pick Slip Creation
The internal sales order is processed at the supplying warehouse, either through the
Sales Processing program [Sales:Operation:Sales Processing] or through the Open
Invoices program [Sales:Operation:Open Invoices]. If you have the option to Auto
Print P/Slips turned on in the Entity Master program [General Ledger:Maintain:Entity
Master], the pick slip is printed together with the invoice number, allowing you to
finalise the internal sale in the Open Invoices program.

Reordering
5. Local Shipment Creation

Finalising the internal sale results in the creation of a local shipment if the receiving
warehouse is remote from the dispatching warehouse. The goods are picked for
dispatching on this local shipment. The shipment can stay open until it is of sufficient
size to dispatch it or it can be dispatched immediately, depending on your
requirements. There is no limit to the number of invoices that can be assigned to the
one local shipment.
If there are multiple local shipments open, a message Multiple Open Shipments is
displayed in the lower right hand corner of the window. This ensures that you select
an appropriate open shipment.
If the receiving warehouse is not remote, the goods are transferred immediately.
6. Dispatch Notification
When the shipment is dispatched, an email notification is automatically sent to the
receiving warehouse. This email message provides the receiving warehouse with the
shipment number as well as an Estimated Time of Arrival. With this information, it is
possible for the receiving warehouse to use the Local Shipment Inquiry program
[Purchasing:Inquiry:Local Shipment Inquiry] to make inquiries concerning the local
shipment.
7. Goods Receipted
When the goods arrive at the receiving warehouse, they must be receipted using the
Local Shipment Receipts program [Purchasing:Operation:Local Shipment Receipts].
Once they have been receipted, it is possible to run the Local Shipment Unpacking
List [Purchasing:Reports:Local Shipment Unpacking List].

8 Frequently Asked Internal
Distribution Questions
8.1 Frequently asked internal distribution questions
8.1.1 How can I delete backorders on an internal purchase

order?
Open the internal sales order in the Open Invoices program [Sales:Operation:Open
Invoices] or the Sales Processing program [Sales:Operation:Sales Processing].
Change the back ordered quantity to zero. Complete the invoice. This generates the
local shipment and two emails are sent to the receiving warehouse: one informs the
warehouse of details of the local shipment; the other informs the warehouse of the
product/s that have been deleted and are therefore not going to be supplied. The
internal purchase order is updated accordingly when the local shipment is receipted.
8.1.2 How can I cancel an internal sales order that has gone to
picking?
Invoices]. Change the supplied and back ordered quantities to zero. Complete the
invoice. This creates a local shipment with no products on it. The invoice and
purchase order are updated when the local shipment is receipted, even though there
are no products on it.
8.1.3 How can I delete a product from both the internal sales
and internal purchase order?
You cannot delete a product from an internal order once it has been transmitted.
However you can ensure that it is not supplied.
Invoices]. Change both the supplied and back ordered quantities for the product to
zero. Complete the invoice. Receipt the local shipment. Both the sales order and the
purchase order are then updated.

Frequently Asked Internal Distribution Questions
8.1.4 How can I delete an internal sales order?
Open the internal sales order in the Sales Processing program [Sales:Operation:Sales
Processing]. Change both the supplied and back ordered quantities for the products to
zero. An automatic email notice is generated informing the receiving warehouse that
the order is not being supplied and the products are not being placed on backorder.
The purchase order is updated and no local shipment is created.
8.1.5 How can I print a list of products on an internal shipment

in transit?
The only way that you can get a listing of all the products on a local shipment in
transit is to inquire on the shipment using the <Invoices> option in the Local
Shipment Inquiry program [Purchasing:Inquiry:Local Shipment Inquiry]. From this
you can ascertain the invoice numbers. You are then able to print out the invoices
using the Sales Invoice Inquiry program [Sales:Inquiry:Sales Invoice Inquiry].
8.1.6 How can I move stock from one warehouse to another

without raising a purchase order?
The Stock Transfers program [Inventory:Operation:Stock Transfers] moves stock

from one warehouse to another without requiring a purchase order.
8.1.7 I cant create a new internal customer as the system tells

me there is already one for this warehouse.
If you want to have more than one internal customer for a warehouse you must use the
<Restrict> option in the Customer Master program [Accounts
Receivable:Maintain:Customer Master] and restrict the internal customers to different
entities. The restriction must be in place before you make the customer internal.
8.1.8 Why am I not able to create local shipments when using

internal purchase/sales orders?
Local shipments are only created when warehouses are defined as being remote.
This is defined in the Distribution Networks program
[Purchasing:Maintain:Distribution Networks] If no distribution network has been
created, warehouses are defined as being remote by default.

9 G/L postings in Internal Distribution
The following postings are based on the standard MomentumPro Chart of Accounts.
9.1 Sales Processing

Internal Customer Tax class: resident tax exempt with tax number
Interface Code Acc # Default G/L Account DR CR

intsal 1020 Internal Sales 100.00
intcos 2020 Internal Cost of Sales 100.00
invent 6110 Inventory 100.00
intdeb 6070 Internal Debtors 100.00
Internal Customer Tax exempt

RFC for Internal Customer Tax exempt Finalised

intcrd 8060 Internal Creditors 25.00
rfcout 8225 Outstanding RFC Clearing 25.00
Acct
chorfc 8090 Creditors Holding (RFC) 25.00

G/L postings in Internal Distribution
9.2 Local Shipment Dispatch

Internal supplier Transfer at cost No tax payable

choldl 8070 Creditors Holding (Local) 155.00
gitl 6090 Goods in Transit (Local) 155.00

9.3 Local Shipment Receipts

Internal supplier Transfer at cost No tax payable

choldl 8070 Creditors Holding (Local) 155.00
invent ** 6110 Inventory 155.00
gitl 6090 Goods in Transit (Local) 155.00
** Entity of receiving warehouse
Internal supplier Automatic offset No tax payable

intdis 8530 Internal Distribution Clearing 155.00
Internal debtor Automatic offset No tax payable

intdis 8530 Internal Distribution Clearing 155.00

9.4 Debtors Cash Receipts

Internal debtor

cashb 6020 Bank Account 200.00

9.5 Debtor Journal Entry Credit Journal

Internal Customer

--------------- ------- User entered 50.00

9.6 Debtor Journal Entry Debit Journal

Internal Customer

--------------- ------- User entered 50.00

9.7 Credit Notes

Internal Customer Tax Class = Resident No restocking fee


9.8 A/R Sundry Invoices

Internal customer No service job entered

--------------- ------- User entered 100.00
Overridden by G/L Account on customer
Internal customer Service job entered No cost

Internal customer Service job entered with cost

wip 6200 Work in Progress 50.00
Can be overridden by G/L accounts on Service Category

9.9 Sundry Credit Notes

Internal customer With or without service job entered

Internal customer Service job entered with cost

wip 6200 Work in Progress 50.00

9.10 Creditor Invoice Entry

Internal supplier (set up to pay no tax)

--------------- ------- User entered 100.00

9.11 Creditor Journal Entry Credit Journal

Internal supplier (set to not pay tax)

--------------- ------- User entered 100.00

9.12 Creditor Journal Entry Debit Journal

Internal supplier (set to not pay tax)

--------------- ------- User entered 100.00

9.13 A/P Sundry Credit Notes

Internal Creditor

--------------- ------- User entered 100.00

9.14 A/P Sundry Invoices

Internal Creditor

--------------- ------- user entered 100.00

9.15 Return for Credit

RFC for Internal Customer Finalised

rfcout 8225 Outstanding RFC Clearing 25.00
Acct
chorfc 8090 Creditors Holding (RFC) 25.00
Refer to the General Ledger Manual for a complete listing of G/L postings.

10 Glossary of Terms
Default
Initial value entered into a field by the system.
Distribution Network
A network that links together warehouse entities within your
organisation that can be treated as a group for purchasing and
distribution.
Entity
A reportable section of your organisation. An entity can be
designated as being a sales entity and/or a warehouse entity.
Internal Customer
A customer account set up for use within your own
organisation.
Internal Supplier
A supplier that is used when transferring goods between
warehouse entities within your organisation.
Local Shipment
A group of items being sent from one warehouse entity to a
remote warehouse.
Pick Slip
A form that shows the items to be picked to fill a customer
order. Used by your warehouse entity staff to pick the
products from stock for a customer.
Product Price Code
A code allocated to a product to represent the products
discount structure.
Pull Strategy
A decentralised supply system for your distribution network.
It requires that the minor warehouse entities determine their
own stock levels.
Purchase Order
A request to purchase goods or services from a supplier.

Glossary of Terms
Push Strategy
A centralised supply system for your distribution network.
The main warehouse entity determines the stock levels for the
minor warehouse entities.
Sales Entity
An entity used for sales analysis purposes.
Warehouse Entity
An entity where stock is held.

11 Index
Internal Sales Order, 3-4
Internal Supplier, 2-1, 2-2
A
A/P Management Analysis program, 6-1 L
A/P System Configuration program, 2-2
A/P Trial Balance program, 6-1 Local Shipment, 3-7, 4-1
A/R Management Analysis program, 6-1 Receipting, 3-9
A/R System Configuration program, 2-4 Local Shipment Inquiry program, 1-3, 4-1, 4-4,
A/R Trial Balance program, 6-1 7-10, 8-2
Apply Unallocated Trans program, 6-5 Local Shipment Number, 3-7
Apply Unallocated Transactions program, 6-5 Local Shipment Receipts program, 1-3, 3-9, 4-
Auto Print P/Slips, 3-5 7, 7-10
Local Shipment Report program, 1-3, 4-9
Local Shipment Unpacking List program, 1-3,
C 4-7, 4-8, 7-10
Centralised Reorder Strategy, 5-7 Local Shipments program, 1-3, 3-7, 4-3
Checking Internal Customer, 2-6 Local Warehouse, 5-3
Checking Internal Supplier, 2-6
Creating M
Distribution Network, 5-9
Internal Customer, 2-4 Maintain
Internal Supplier, 2-2 Distribution Networks, 5-9
Local Shipment, 4-3 Local Shipments, 4-3
Creditor/Supplier Master program, 2-2 Multiple Open Shipments, 4-2
Creditors Payment Run program, 6-4
Customer Master program, 2-4, 8-2
Customer Sales Report program, 6-1
O
Open Invoices program, 3-5, 3-7, 3-12, 4-3, 7-
D 9, 8-1
Operation
Debtor Cash Receipts program, 6-4 Local Shipment Receipts, 4-7
Decentralised Reorder Strategy, 5-6 Overview of Internal Distribution, 3-1
Deleting Internal Purchase Order, 3-12
Deleting Internal Sales Order, 3-12
Distribution Network, 5-2
P
Distribution Networks program, 1-3, 5-5, 5-9, Paying Internal Suppliers, 6-4
8-2 Payment Entry program, 6-4
Price Matrix, 3-10
E Procedures
Creating Internal Customer, 2-4
Email, 2-2, 2-4 Creating Internal Supplier, 2-2
Email Notification, 3-8 Programs
Entity Master program, 2-6, 3-5, 3-7, 7-9 Distribution Networks, 5-9
Entity Sales Report program, 6-1 Local Shipment Inquiry, 4-4
Local Shipment Receipts, 4-7
Local Shipment Report, 4-9
I Local Shipment Unpacking List, 4-8
Inquiry Local Shipments, 4-3
Local Shipment, 4-4 Pull Reorder Strategy, 5-5, 5-6
Internal Accounts, 6-1 Purchase Order Processing program, 7-1, 7-5,
Internal Customer, 2-1, 2-4 7-8
Internal Customer Price Code, 3-10 Purchase Order Run program, 7-3, 7-5
Internal Dist. Configuration program, 6-3 Purchase Orders program, 3-2, 3-3, 7-9
Internal Purchase Order, 3-2 Push Reorder Strategy, 5-5, 5-7

Index
R Sales Orders program, 3-4

Sales Processing program, 3-5, 3-7, 3-12, 4-3,
Receipting, 3-9 7-9, 8-1, 8-2
Receipting Local Shipment, 4-7 Shipment Number, 4-8
Release Payments program, 6-4 Spot Orders, 7-9
Remote, 5-2 Status
Remote Warehouse, 5-3 Transmitted, 3-3
Reports Stock Adjustments program, 4-7
Local Shipment, 4-9 Stock Transfers program, 8-2
Local Shipment Unpacking List, 4-8
Restrict
Internal Customer, 2-4
T
Internal Distribution, 2-7 Transmit, 3-3
Internal Supplier, 2-2 Transmitted, 3-3
S W
Sales Entity, 5-1 Warehouse Entity, 2-1, 5-1
Sales Invoice Inquiry program, 8-2 Warehouse Reorder Strategy, 5-5

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Internal Distribution

Information in this document is subject to change without notice. Companies, names

2007 Markinson Technologies Pty. Ltd. All Rights Reserved.

1 Overview of Internal Distribution............................................ 1-1

2 Internal Suppliers and Customers.......................................... 2-1

3 Internal Distribution process .................................................. 3-1

4 Local shipments....................................................................... 4-1

MomentumProInternal Distribution Version 2.3S Page i

5 Distribution Networks.............................................................. 5-1

6 Paying internal suppliers ........................................................ 6-1

8 Frequently Asked Internal Distribution Questions................ 8-1

9 G/L postings in Internal Distribution ...................................... 9-1

MomentumProInternal Distribution Version 2.3S Page ii

10 Glossary of Terms ................................................................. 10-1

MomentumProInternal Distribution Version 2.3S Page iii

1.1 Introduction to Internal Distribution

MomentumProInternal Distribution Version 2.3S Page 1-1

1.2 Conventions used in this Manual

MomentumProInternal Distribution Version 2.3S Page 1-2

1.3 Internal Distribution programs

Menu Program Page number

MomentumProInternal Distribution Version 2.3S Page 1-3

2.1 Internal suppliers and internal customers

MomentumProInternal Distribution Version 2.3S Page 2-1

2.2 Creating an internal supplier

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2.3 Creating an internal customer

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2.4 Checking internal accounts

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2.5 Entity Restrictions in Internal Distribution

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2.5.1 One supplier for multiple internal customers

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2.5.2 One supplier for each internal customer

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2.5.3 Multiple suppliers and customers: no restrictions

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2.5.4 Multiple suppliers and customers with restrictions

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3.1 Overview of Internal Distribution process

Internal Sales Order 5432

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3.1.1 Creating internal purchase order

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3.1.2 Transmitting internal purchase order

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3.1.3 Generating internal sales order

An internal sales order is generated automatically at the supplying warehouse when

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3.1.4 Generating invoice/pick slip

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3.1.5 Creating local shipment

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3.1.6 Notifying receiving warehouse

Once a shipment has been dispatched, an email notification is automatically generated

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3.1.7 Receipting local shipment

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3.2 Pricing of stock in Internal Distribution