We have had long term problems with using Adagio Inventory for Stock Transfers and so we recently switched to using Order Entry. As suggested to us in an older post on these forums, we decided to Invoice our branches out of our stock and then Credit them back after confirmation of the delivery returning the product to their stock. Thus, moving the stock from our warehouse to theirs. It's not a great solution, but it provides better paperwork and inventory control than Adagio Inventory's Stock Transfer.

Since were are now doing a large volume of Credit Notes in this process, I have questions regarding what effect it is having on our inventory item cost.

1. We sometimes Invoice and then Credit the Invoice the same day. This gives us a message about the cost has not been processed by Day End and will use the Standard Cost. What exactly does this mean?? Should we delay enterring the Credits until the next day to avoid this? Just to explain further, we use Standard Cost as the cost for our Sales Reps. We mark up our Actual Cost (Avg Cost) slightly to cover processing and manually enter that amount in Standard Cost at the point of receiving the product from our suppliers. Later when the items is sold, our Sales Reps commission is based on a percentage of Selling Price minus the Standard Cost. So therefore our Standard Cost is always a little higher than our Actual (Avg Cost).

2. After we issue the Credit, we immediately print a Valuation Report for our branch warehouse location. The bottom of the report has note that says: "**Note: Invoices have been entered in Order Entry, but have not been costed. Items will not show correct costs until O/E Day End processing is completed". Does this mean we should wait another day after the Credit Note has been entered to print the valuation report? When we do the valuation report the same day as the Credit note, some of the items are completely missing from the valuation report because we have "restrict to nonzero qtys and costs" checked. I believe that the qty's are updated on the system immediately when the credit is issued, however, some of the costs are maybe at zero until after day end is processed therefore explaining why those items are missing from the valuation report??

Thanks for your help on this. I hope to fine tune this process ASAP.