Understanding Stock Transfers Between Business Units

In PeopleSoft Inventory, an interunit transfer is a transfer of stock between two PeopleSoft Inventory business units. You can create interunit transfers using these methods:

  • Express Issue component.

  • Create/Update Stock Request component.

  • PeopleSoft Planning messages.

  • PeopleSoft Purchasing Sourcing process.

Note: This topic discusses transferring stock between two Inventory business units. For information on shipping stock to internal departments or on behalf of another general ledger business unit, see PeopleSoft Cost Management , "Designing Inventory Accounting," Designing Shipment On Behalf Of and Creating and Reversing Interunit Expensed Issues.

There are three approaches to interunit transfers:

  • Interunit transfer using only an in-transit account.

    As you move stock from one business unit to another, you record the cost in an in-transit account. Use this approach when both business units post to the same general ledger.

  • Interunit transfer with interunit receivables and interunit payables accounts.

    You use an in-transit account along with due to and due from accounts for each business unit. Use this approach when the two business units post to different general ledgers. This approach can be used when transferring stock between separate legal entities or within the same legal entity.

  • Interunit sales.

    The source PeopleSoft Inventory business unit records a sale, and the linked PeopleSoft Billing business unit issues an invoice to the receiving business unit's PeopleSoft Payable unit. (This is also called an intercompany transfer.) This approach can be used when transferring stock between separate legal entities or within the same legal entity, but it is required if the PeopleSoft General Ledger business units use different currencies.

When you transfer goods between business units, you need to account for transfer costs, currency changes, taxes, and invoicing for the affected business units.