Proper way to handle inventory needing processing
Hoping for some insight on how to "properly" handle our inventory and processing.
We buy our product in bulk, and apply a coating to it once it arrives. This is done at an outside vendor. We don't apply coating to about 5% of the product, because some customers like it uncoated.
1) Buy an Inventory Item "ABC" from the manufacturer, and receive it to stock in our "Main Warehouse" location.
2) We then create a purchase order to our coating vendor for the qty that we want coated.
3) We create a transfer order to a location called "Outside Processing", and physically send the product to the vendor.