Interorg transfers - How to prevent average cost of an item in two inventory orgs from mixing during
Client has 4 OUs having one inventory Org each
Each unit can hold inventory belonging to another unit. Typical business case is as follows:
Unit A may have insufficient raw material storage capacity and may do inter-org transfer of the item to Unit B to hold its stock until required for consumption
Requirement:
Item rates should not mix.
A Raw material item such as cotton is used in all 4 orgs. When an item qty is transferred from Org A to Org B for storage, and then from Org B back to Org A for consumption, the rates get averaged out. This causes distortion in the accounts (Stock valuation and COGS) of both Orgs involved.