The following is a detailed example of how to set up the IFT system for a company with multiple warehouse locations.
Two warehouses set up so that transfers can be processed in both directions (each warehouse is both shipping and a receiving facility).
Let’s assume we are a distributor with 2 main warehouse locations ATL (Atlanta), and MIA (Miami). Our purchasing department has decided that they wish to be able to transfer inventory between these inventory locations using the IFT system. The purchasing department will be responsible for ensuring that the inventory movements are made in a coordinated and cost effective manner. To implement the IFT system in this situation, we would need to do the following.
1. Create the IFT Vendor Record. The IFT Vendor record is used for all IFT transfers, regardless of the source and destination location used on the transfer. In this case, the Vendor name is “Interfacility Transfer” and the Vendor Account is set to “-COVELOC”
2. Create the IFT Customer record. The IFT Customer record is used for all IFT transfers, regardless of the source and destination to be used for the transfer. The IFT Customer records must be created with a name that is identical to the name of the IFT Vendor created in the previous step. In this case, the Customer name is set to “Interfacility Transfer” and the customer account is set to “-COVELOC”. Note: You may use a name other than Interfacility Transfer for the IFT customer and vendor, but the names used for the IFT customer and vendor record MUST be identical, and the account field in the records MUST be set to “-COVELOC” in order for the system to process the IFT transactions correctly.
3. Create a Shipto record for each of the warehouse locations where IFT transactions can be processed. IFT Shipto records are created from and attached to the IFT customer record created in the prior step. Each IFT Shipto record should have the name and physical address for the warehouse location in the name and address fields in the Shipto record, and the warehouse location code for the warehouse in the Default Loc field of the record. You may edit the name of the Shipto records (they do not have to be set to “InterFacility Transfer” and do not need to match the IFT customer and Vendor name, but the records must have the account “-COVELOC” in them and they must have the appropriate warehouse information entered into them. In this example, you would create two Shipto records as follows.
Acct# Ship to Name Default Loc
-COVELOC Global Distributing – Atlanta ATL
-COVELOC Global Distributing – Miami MIA
Once these records have been created, and the IFT programs have been properly installed, the purchasing department may process IFT transactions between the ATL and MIA locations. Both MIA and ATL can be used as a source or a destination location, and transfers can be initiated by the purchasing department in either or both locations.
For more information about IFT processing procedures (such as creating an IFT P/O, checking on the status of a transfer, receiving an IFT P/O, etc.), please refer to the IFT Procedures Guide.