Jun
5
Written by:
Clark
6/5/2008 4:44 PM
While this is a Distribution blog, I encountered an interesting accounting sitiation this week. A client has 4 maquila sites in Mexico, all production plants, that ship their finished product to a warehouse in Texas. All sales orders are then shipped out of the warehouse.
The Operations VP's want to get a sense for inventory turns at the plants, though. We need to trace the finished good inventory in the warehouse, in conjunction with the standard cost of shipped product (COGS), back to the originating plant.
By using the Network Code in the ptp_det record of the warehouse, we can find the plant that the part likely came from, as every part is built in one and only one plant. By finding the origination of the parts that were shipped and invoiced in a similar manner, we can deduce not only plant inventory turns, but begin to arrive at a plant Income Statement. Very powerful visibility for these Ops VP's.