Understanding Interunit Transfers

A transfer of stock between two inventory business units is known as an interunit transfer. To create an interunit transfer:

  1. Add a material stock request (MSR) with the request type of Interunit Transfer. The MSR includes a destination (receiving) inventory business unit.

  2. Complete the demand fulfillment steps within the source (sending) Inventory business unit to ship the stock.

  3. Run the Deplete On Hand Quantity (Depletion) process in the source unit. In addition to other functions, this process calculates the transfer price (transfer cost) of the stock and any additional transfer costs.

  4. When the items are received in the destination business unit, run the Load Staged Items process (INPSSTGE).

  5. Run the Cost Accounting Creation process page to create the accounting entries for the interunit transfer. These accounting entries record the changes to the inventory stock accounts, intransit accounts, and record any additional transfer expenses or gain/loss on transfers.

While using this topic, please note the following points:

  • The terms transfer price and transfer cost both refer to the same value.

  • The setup of an interunit transfer can be divided into several parts. In this topic, we discuss the transfer pricing and accounting entries related to a transfer. Before defining your transfer pricing structure, you must set up the overall interunit transfer structure. The PeopleSoft Inventory provides detailed instructions for setting up the system for interunit transfers.

    See PeopleSoft Inventory: Understanding Stock Transfers Between Business Units

  • PeopleSoft Cost Management does not support interunit pricing for non-cost items.

  • This topic discusses transferring stock between two Inventory business units. For information about shipping stock to internal departments or on behalf of another GL unit, see the PeopleSoft Cost Management, Setting Up the Accounting Rules Structure topic. Read the sections "Designing Shipment On Behalf Of" and "Creating and Reversing Interunit Expensed Issues."

    See Designing Shipment On Behalf Of.

    See Creating and Reversing Interunit Expensed Issues.