Performing Interunit and Intercompany Transfers

A stock transfer originates with a transfer request in the source business unit through a material stock request (MSR) entered in the Create/Update Stock Request component or by the PO Sourcing process, or through the Express Issue component. The demand lines then undergo either express issue or standard fulfillment processing, depending upon which component you used to create the request. At this point, if the transfer is an intercompany transfer, it requires additional processing in PeopleSoft Billing.

When the transferred stock arrives at the destination business unit, workers at the receiving dock receive it using the Interunit and RMA Receiving component. After the material has been received, it is inserted into the PeopleSoft Inventory Staging Interface table (STAGED_INF_INV) for putaway processing.

During the putaway process, you specify storage locations for the received items. Only certain locations are eligible for a particular item, depending upon the item's ownership status in both the source and destination business units. In general, if the item came from an owned location, you must put it into an owned storage location; if the item came from a non-owned location, you must put it into a non-owned storage location. There are two exceptions to this rule:

  • If the item was consigned in the source business unit, put it into an owned storage location.

    Consigned items put away through interunit and intercompany transfers are considered to be consumed at the time of shipment and are therefore classified as owned when they are received at the destination business unit.

  • If the item was non-owned in the source business unit but is consigned in the destination business unit, put it into an owned storage location.

    To ensure correct costing, PeopleSoft Inventory then sets the transfer price in the staging interface table to zero.

  • If the business unit is a VMI business unit, owned items are allowed to be put into a non-owned location. For interunit transfers received into a VMI BU, the putaway location is determined by the ship-to customer.

The complexity of the transaction determines the method by which you transfer stock. Use an express issue to streamline the transfer of goods between warehouses; use an MSR when complete fulfillment processing is necessary.

Express Issue Transfers

In an express issue transfer:

  1. Someone at the source business unit adds an express issue transfer on the Express Issue page.

  2. The person entering the issue launches the Deplete On Hand Qty (Depletion) process by using the Deplete On Hand Qty link.

    In addition to the regular processing, the Deplete On Hand Qty (Depletion) process assigns a transaction group matching the type of transfer (interunit or intercompany). PeopleSoft Cost Management later uses that transaction group to create accounting lines for the transfer.

    For interunit transfers, this is the final step.

  3. For intercompany transfers, run the Interunit Transfer Billing multiprocess job (BIINIU) in PeopleSoft Billing to calculate VAT, generate invoices, create accounting entries, and initiate voucher creation.

    For express issues using direct invoicing, you can launch the Interunit Transfer Billing job by using the Deplete On Hand Qty link on the Express Issue page or by running the Direct Invoicing with Auto-Ship multiprocess job (DIRAUTO) from the Ship and Invoice page.

    For express issues that do not use direct invoicing, generate billing output by performing the steps discussed in the Staging Sales Orders and Intercompany Transfers for PeopleSoft Billing section of this topic.

Material Stock Request Transfers

In an MSR transfer:

  1. Someone at the source business unit records an MSR using the Create/Update Stock Request component.

    The system can also generate an MSR automatically through a planning message or purchase order sourcing request.

  2. PeopleSoft Inventory manages the demand lines on the MSR through standard fulfillment processing (reservations, picking, picking confirmation, and depletion).

    You can initiate the Deplete On Hand Qty (Depletion) process from these locations:

    • Shipping/Issues or Express Issue component.

      If the business unit is set up for intercompany processing, the system automatically opens a PeopleSoft Billing job page upon completion of the Deplete On Hand Qty (Depletion) process. You use this page to launch the Interunit Transfer Billing multiprocess job and to select the job server, output destinations and types, and distribution lists.

      For intercompany transfers designated for direct invoicing, the system generates all output immediately. For intercompany transfers without direct invoicing selected, the Billing Interface and VAT Defaults processes (both of which are part of the Interunit Transfer Billing job) create bills, but these bills remain uninvoiced in the PeopleSoft Billing system. To complete processing, change the bill status to RDY (ready) on the Bill Entry pages and then run the Single Action Invoice process (BIJOB03) from the Single Action Invoice page.

    • Depletion page.

      For intercompany transfers, generate billing output by performing the steps discussed in the Staging Sales Orders and Intercompany Transfers for PeopleSoft Billing section of this topic.