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We have a customer that transfers inventory to and from related entities with different base currencies.  Company A sends the inventory to Company B.  Company A has a base currency of USD and Company B has a base currency of CAD. 

We cannot perform Transfer Orders or 1-step or 2-step transfers to any warehouse with a differing base currency.  I have a case open on this but was hoping to reach out to the community to see how they might have solved this issue.

The customer does not want to do intercompany sales for these types of transactions for a couple of reasons.  1. An intercompany sale requires the person creating the sales order to know the cost of the inventory “selling.”  They are simply transferring cost from one warehouse to another.  2. They are not billing each other for these items, they are wanting to transfer inventory and costs between Company A in USD and Company B in CAD.

Any thoughts or suggestions would be greatly appreciated!

@rena98 , if companies have different base currencies, it probably means they also have separate accounting for their assets/liabilities/P&L. If so, how is such transfer supposed to be reflected in accounting for each of entities? What are offset accounts for inventory issue in the A and inventory receipt in B?


Hi Mark,

It would expect it behave the same as a regular transfer between companies/branches.  

When I do this between companies with same currencies the following transactions are created:

TR order from Company A to Company B.  Shipment is created, generates the following transaction: inventory type, transfer.  Batch:  Company A credits inventory, debits Company B inventory in transit, also a due to/do from for IC.

When Company B receives the items (through purchase receipts as a type “Transfer Receipt”) the transaction is as follows:  Batch: Company B debit inventory, Company B credit inventory in transit.

I am hoping for the same behavior to occur for IC transfers with different currencies, but no luck yet. I am guessing it has to do with the inability to do MC for IC.


Hi Mark,

I was encouraged to let you know that I am a partner and to ask you what steps to check and how would you accomplish this task.

Any additional insights would be appreciated!

Thanks again,

Rena


Hi @rena98 were you able to find a solution? Thank you!


Hi @Chris Hackett , no, no answer yet.  I do still have a case open, so if anything comes up I’ll be sure to post it.


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