The Storage Room Project and Using the Item Transfer Window

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The Storage Room Project is a specialized Project used to record, maintain, and even purchase merchandise that is not currently designated for an on-going Project. For example, occasionally you will come across merchandise that might not be applicable to a current Project but which you know will be perfectly suited to a future Project at some point in time.  After purchasing the merchandise, it can be added as specifications to the Storage Room Project in Design Manager.  Purchase Orders can be generated for documentation along with the appropriate Vendor Invoice and payment information. Use the Company Information Window - COGS Accounts Tab to designate the Storage Location Project.


During a design project, it is not uncommon for an article of merchandise to be purchased from a Vendor, only to have the Client ultimately not desire the good for whatever reason.  In such circumstances, the cost needs to be removed from the Project as to not distort the overall profitability of the job.  Design Manager provides an interface to move such merchandise out of the Project into a Project for a different Client, or the Storage Location Project, along with providing a complete Accounting audit trail of the transactions by using the Transfer Item Window.


To utilize the Transfer Project Item Window, first go to the Projects and Specifications Window.


proj specs window


On the Specifications Tree, select the Item to be transferred and click the Transfer Item projspecs_xfer item button button.  Doing so will display the Transfer Item Window shown below.


xfer item window


The Source Project and Source Item information is populated automatically with the Project and selected Item from the Project and Specifications Window.  The Item Quantity and Client Description are also displayed for reference.  In the Transfer To frame, enter the Code of the Project into which the merchandise is to be transferred in the Destination Project field.  The Search button in the lower left corner of the window can be used to select the desired Project from the Project Search Window.  If a Storage Location Project has been entered on the Company Information Window - COGS Accounts Tab, it will be defaulted as the Destination Project.  You can optionally enter a Location Code within the Destination Project under which the merchandise will be moved in the Destination Location field.  The Mark Source Item menu allows you to set the status - Complete, Inactive, or Nothing - of the Source Item upon executing the transfer.  If Complete, which is the default selection, or Inactive is selected, the Source Item will be moved into the respective folder on the Projects and Specifications Window.  If Nothing is chosen, the Item will continue to available with the other active Items in the Source Project.


If the Item in question contains multiple Components and you only wish to transfer particular Components, click the Partial button.  Doing so will display the Transfer Components Grid which lists each Component of the Item and the Transfer Item Quantity field.


xfer item - partial

The Transfer Components Grid has the following columns:


Tag:  Check this column to include the Component in the transfer process.


Reference Number (#):  The unique Reference Number of the Component.


Description:  The Purchase Order Description of the Component.


Type:  The user-assigned Component Type such as Merchandise, Freight, etc.


Purchase Order Quantity (PO Qty.):  The Component Quantity.


Paid Quantity (Paid Qty.):  The total quantity recorded on all Vendor Invoices for the Component.


Actual Cost (Act. Cost):  The total cost recorded on all Vendor Invoices for the Component.


Transfer Quantity (Transfer Qty.):  The quantity of the Component that is going to be transferred to another Project.  By default, the Transfer Quantity will equal the Paid Quantity.


Transfer Cost:  The amount of cost of the Component that is going to be transferred to another Project.  By default, the Transfer Cost will equal the Actual Cost.


The Transfer Quantity and Transfer Cost can be changed for the Component selected on the Transfer Components Grid by clicking Edit button.  You would want to reduce the Transfer Cost and/or Transfer Quantity if the Component is not going to be transferred in its entirety.  By default, all Components will be included in the transfer, to remove a Component from the transfer process, simply uncheck the Tag column.


Two additional options are available when the Partial button has been clicked, As a New Item and As Components of Item #, each of which changes how precisely the Components will be transferred as follows:

As a New Item:  The As a New Item option will create a new Item in the Destination Project containing each Component included in the transfer.  The Item Quantity, which is displayed on Proposals and Client Invoices, will be set to the amount recorded in the Transfer Item Quantity field.  The Transfer Item Quantity amount is defaulted from the original Item but can be changed as desired.
As Components of Item #:  When the As Components of Item # option is selected, enter or select the Reference Number of the desired Item from the Destination Project into which the Components will be transferred.


Once all the desired Components are tagged and have the proper Transfer Cost and Quantity, click the OK button.  Upon doing so, you will be asked "Are you sure that you want to execute this transfer?".  Clicking Yes will transfer the Components including the Description, Vendor, etc. and the Transfer Cost and Transfer Quantity into the Destination Project.  If the As a New Item option is used, the Item Description will be set to the Description of the Item from which the Components are being transferred.  If the As Components of Item # option is being used, the Components will simply being added to the selected Item in the Destination Project.  A message stating "The transfer is complete." will be displayed upon the conclusion of the transfer process.


Accounting:  Upon executing the transfer, the following transactions are created:


A negative Project Purchase Order Vendor Invoice is created for each Component on the original Purchase Order for the Transfer Cost of the Component.  The negative Vendor Invoice will be for a special XFER Vendor so that all the activity of all transfers can be monitored by reviewing the activity for the XFER Vendor.
If the Component was originally created using a Project-Related Operating Expense, a negative Project-Related Operating Expense for the XFER Vendor will be created rather than a negative Vendor Invoice for a Project Purchase Order.
These Vendor Invoices will remain on the Checking Window - Pay Bills / Print Checks Tab and in Accounts Payable until manually removed by the User.  You will need to Tag both entries and choose the Offset offset button button on that window.  This allows the offsetting Payables to be reviewed if necessary.