Project cost and material transfer

1

We have created multiple warehouses, each assigned to unique Project. In fact, we have set a new field in Project “Default warehouse” so that the same applies to all new material requests and POs.

When purchase is completed for project 1, the newly purchased materials get stored in the corresponding warehouse A. Sometime later, we might need to transfer some materials from that purchase to another warehouse B of Project 2. We use Material request form for that with purpose set to “Material Transfer”. This request will be approved and material transfer will be done. Lets assume the initial purchase was worth $100 and the material transfer was worth $50 + $5 as transportation expense.

Whenever we viewed project summary, we expect the system to account for that material transfer i.e. reduce project expense in Project 1 by $50 and increase project expense by $50 for material and $5 for transportation in Project 2. However, we do not see any such provision.

Are we looking at the wrong place or are we using the system in the wrong way ?

How are we supposed to handle such material transfer in between projects ?

2

Looks like no one has an answer !

3

Project expense are only updated on invoice generations. Not on stock transfers or consumption.
So you could create a sales invoice for the material at 50$ mapped to the project to account for the transfer to the new project warehouse. But this would mess up your accounting.

So a possible solution would be to create a sales Invoice for the Project A with update stock. Then create a purchase invoice for Project B with update stock.
You can maintain dummy supplier and customer accounts for these transactions. This will ensure your accounting is good and the project expenses/income are properly maintained for profitability analysis.

1 Like