Transfers between Operating Units

Transfers between Operating Units

Transfers between Operating units that are not linked to a single computer system (no on-line processing) must be treated differently. The level of trust between business units and the level of trust in the transport service requires consideration.

Transfers between Operating units are made as;

1. Monitored transfers
2. Monitored transfers.

1. Unmonitored transfers

Unmonitored transfers are transfers in which it is assumed that whatever is issued by one business unit to another is also received by the other. The setting in this case is the same as for interwarehouse transfers.

2. Monitored transfers

Monitored transfers are transfers where we set a check at receiving.

We need to insert a third party (e.g. a carrier) between the receiving and issuing warehouses and open two pairs of symmetrical material document types. Let's look at an example flowchart:

Explanation of the flowchart:

• In the flowchart we can see that we have introduced the carrier as the third party.
• We use document type A000 to issue the goods to the carrier, who receives them at the Transport warehouse.
• The business unit uses document type A100 to receive the goods from the carrier and takes them to the Business unit warehouse.
• The process is the same the other way round. We use document type A200 to issue goods from the warehouse of the business unit to the carrier, and then collect them from the carrier using document type A300.

The advantage of this method is that we can immediately identify the point. The issue from the main warehouse is monitored by the receiving to the business unit warehouse (A100-A000). The issue from the business unit warehouse is monitored by the receiving to the main warehouse (A300-A200).

The introduction of monitored transfers doubles the number of documents that need to be fed into the IT system and thus doubles the administration of transfers. When considering the use of monitored vs. unmonitored transfers, remember to keep this fact in mind.

HINT Once you have drawn the flowchart, you can start entering the material document types into PANTHEON.