Good day,
I have a question on the best method to bring master cartons that have been emptied back into inventory to be used in manufacturing again.
- The master cartons are part of the BOM used during the manufacturing process.
- The master cartons are consumed via production work orders (issued to).
- The master cartons are initially procured from outside vendors and included in our demand planning.
A simple stock adjustment is not ideal because management wants to capture the cost of handling the cartons and posting them back into inventory at our distribution center. Our manufacturing facility and distribution center are under the same plant and GL accounts (different warehouses/storage locations).
As of now; my thought is to create a PO with two lines, one line to post the goods receipt and bring the master carton back into inventory and the second line to post a cross charge from one cost center to another (distribution charge to manufacturing) as a service charge.
First, is my idea the right direction to go and is this possible through standard (considering the warehouses are under the same GL accounts)?
If PO and MIGO goods receipt is feasible;
What type of PO?
What item and account assignment category combination fits for the relevant lines?
Any advice would be appreciated