<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/wh/onlinemanual/000459" xml:lang="en">
   <Header>
      <Title>Financial warehouses</Title>
      <Keyword type="header" order="d1e2972901">
         <Level1>Financial warehouse</Level1>
         <Level2>setup</Level2>
      </Keyword>
   </Header>
   <AimSection>
      <List>
         <ListIntro> 
            <Link href="/baanerp/wh/glossary/glossary#000463" role="glossary" Update="No">Financial warehouses</Link> are used in various internal <Link href="/baanerp/wh/glossary/glossary#000469" role="glossary">vendor managed inventory (VMI)</Link> scenarios, in which:</ListIntro>
         <ListItem>The ownership of goods changes resulting from inventory
		  transactions between departments or business units that belong to the same
		  organization but have their own p &amp; l accountability.</ListItem>
         <ListItem>Goods are not paid for on receipt, but at a later stage in the
		  supply chain.</ListItem>
      </List>
      <Paragraph>A financial warehouse is used to specify the
		internal owner of the inventory. As a rule, the inventory of a warehouse is
		owned by the <Link href="/baanerp/tg/glossary/glossary#000072" role="glossary">financial company</Link> to which the warehouse belongs.
		However, if the inventory is owned by another financial company, a financial
		warehouse is used to show that the inventory is stored in a warehouse belonging
		to financial company A but owned by financial company B.</Paragraph>
      <Paragraph>For this purpose, the financial warehouse is
		linked to the financial company of the business unit or department that owns
		the goods and to the warehouse actually storing the goods. In a financial
		warehouse, no physical transactions take place, it merely reflects the
		inventory levels of the physical warehouse (of the other financial company)
		where the goods are actually stored and handled. For further information on how
		a financial warehouse is linked to the financial company owning the inventory
		and to the warehouse storing the inventory, see <Link href="#setup" role="internal">Setup</Link>.</Paragraph>
      <Paragraph>For example, an organization has main office M
		and business unit B. Each is has its own p &amp; l accountability. The
		inventory is stored in B's warehouse, but owned by M until B consumes the
		inventory.</Paragraph>
      <Paragraph>B has physical, that is "real", warehouse Wh_B.
		M has financial warehouse M_WhF. The goods are actually stored in Wh_B, and
		M_WhF reflects the inventory levels of Wh_B. In Wh_B, the inventory is shown as
		owned by M with ownership <Link href="/baanerp/wh/glossary/glossary#000466" role="glossary">consigned</Link>. The ownership change is <Link href="/baanerp/wh/glossary/glossary#000480" role="glossary">consumption based</Link>. In M_WhF, the goods are shown as own inventory.</Paragraph>
      <Paragraph>When goods are received in Wh_B, the inventory
		level is increased in both Wh_B and M_WhF. If goods are issued from Wh_B, B
		becomes the owner of the goods and consequently, the inventory level of Wh_B
		and M_WhF decreases. Because B has become the owner, he must pay for the goods.</Paragraph>
      <Paragraph>If a unit within an organization owns goods that
		are stored in several warehouses, each of which belonging to another business
		unit or department with its own p &amp; l accountability, you can link the
		financial warehouse to the warehouses of each of these units. For more information, refer to <Link href="#Link_to_many_physical_whses" role="internal">Link financial warehouse to various physical warehouses</Link>.</Paragraph>
      <Paragraph>Because the main purpose of a financial
		warehouse is registering owned inventory actually stored in another
		department's physical warehouse, functionality and settings dealing with
		inbound movements, outbound movements, locations, and handling units is not
		required. For information on financial warehouse properties, see <Link href="#finance_wh_properties" role="internal">Financial warehouse properties</Link>.</Paragraph>
   </AimSection>
   <GeneralSection ID="setup">
      <SectionTitle>Setup</SectionTitle>
      <Paragraph>Internal ownership registration is modeled as
		follows:</Paragraph>
      <Paragraph>Each department, such as a purchase office or
		business unit is defined as a <Link href="/baanerp/tc/glossary/glossary#000005" role="glossary">department</Link> in ERP Enterprise. Each ERP Enterprise department is linked to an <Link href="/baanerp/tc/glossary/glossary#000011" role="glossary">enterprise unit</Link>. Warehouses, financial or otherwise, are separate entities which
		are also linked to an enterprise unit. <Link href="/baanerp/tc/glossary/glossary#000074" role="glossary">Internal business partners</Link>, also linked to an enterprise unit, represent the
		warehouses linked to the enterprise unit.</Paragraph>
      <Paragraph>Enterprise units are linked to <Link href="/baanerp/tg/glossary/glossary#000072" role="glossary" Update="No">financial companies</Link>. Financial transactions carried out for
		an enterprise unit are booked in the enterprise unit's financial company. To
		book financial transactions in the correct department's accounts, you must link
		the departments, internal business partners, and warehouses involved to the
		enterprise unit linked to the proper financial company.</Paragraph>
      <Paragraph>For example, internal business partner IBP_M is
		linked to <Link href="/baanerp/tc/glossary/glossary#000011" role="glossary">enterprise unit</Link> EU_M, thus representing main office M
		(see previous example). Financial warehouse M_WhF is linked to EU_M and
		physical warehouse Wh_B (see below). EU_M. is linked to <Link href="/baanerp/tg/glossary/glossary#000072" role="glossary">financial company</Link> A.</Paragraph>
      <Paragraph>Internal business partner IBP_B is linked to
		enterprise unit EU_B, thus representing business unit B. Warehouse Wh_B is
		linked to financial company B, which is also linked to enterprise unit
		EU_B.</Paragraph>
      <Paragraph>In this way, payments resulting from inventory
		consumptions by B are paid into financial company A and subtracted from
		financial company B.</Paragraph>
      <GeneralSection ID="Link_to_many_physical_whses">
         <SectionTitle>Link financial warehouse to various physical
		  warehouses</SectionTitle>
         <Paragraph>For example, an organization has a site in
		  country ABC and one site in country BCD. Each site has one normal warehouse and
		  two shop floor warehouses. Each site has its own p &amp; l accountability.
		  Therefore, in ERP Enterprise, they
		  are modeled as two separate financial companies. The organization also has a
		  separate business unit, Business Unit 1, which owns inventory in both sites.</Paragraph>
         <Paragraph>Business Unit 1 can be a business unit in
		  country ABC with its own p &amp; l accountability, but it can also be a
		  separate internal organization in another country, for example, the main
		  office, which has inventory in country ABC on a <Link href="/baanerp/wh/glossary/glossary#000466" role="glossary">pay on use</Link> or internal subcontracting scenario. Business Unit 1 is modeled in a
		  third financial company. Thus two financial companies reside in country ABC and
		  one in country BCD. See the following picture for the setup.</Paragraph>
         <Figure space-and-orientation="indented-estimated">
            <HTML:IMG xmlns:HTML="http://www.w3.org/TR/REC-html40" height="384" width="576"
                      SRC="../images/tr_graph_fin_wh.gif"
                      alt="[...]"/>
         </Figure>
         <Paragraph>Business Unit BU1 owns inventory that is
		  stored in WH_1a. Because this inventory is owned by BU1 and not by the
		  financial company ABC linked to warehouse WH_1a, a warehouse of type financial
		  linked to financial company BU1_ABC is created. This warehouse, WH_BU1a, is
		  linked to physical warehouse WH_1a (indicated in the picture by the arrow
		  pointing from WH_BU1a to WH_1a).</Paragraph>
         <Paragraph>BU1 also has inventory in shop floor
		  warehouses WH_1b and WH_1c. To specify the inventory of BU1 in these
		  warehouses, no new warehouse need to be set up, but WH_BU1a can also be linked
		  to these (physical) warehouses.</Paragraph>
         <Paragraph>Furthermore, in an internal pay on use
		  scenario, BU1 owns inventory located in site 2 of the enterprise in country
		  BCD. For this inventory, another warehouse of type financial WH_BU1b is created
		  and this financial warehouse is linked to the physical warehouses in country
		  BCD.</Paragraph>
         <Paragraph>The inventory owned by BU1 is stored in both
		  the financial and the physical warehouse. In the physical warehouse, the
		  inventory is stored as owned by the internal business partner of (the
		  enterprise unit linked to the financial company of) BU 1.</Paragraph>
      </GeneralSection>
   </GeneralSection>
   <GeneralSection ID="finance_wh_properties">
      <SectionTitle>Financial warehouse properties</SectionTitle>
      <List>
         <ListItem>For a financial warehouse, functionality and settings dealing
		  with inbound movements, outbound movements, locations, and handling units is
		  not available, nor are manual transactions such as receipts, shipping,
		  inspections, or order entry.</ListItem>
         <ListItem>You cannot insert a financial warehouse on an order. If, for
		  example, a parent warehouse is specified on a sales order, the financial
		  warehouse is retrieved by means of the owning business partner.</ListItem>
         <ListItem>The inventory of a financial warehouse is not taken into
		  account for planning and is not shown in non-financial inventory overviews,
		  because it is also shown as the not-owned inventory of the physical warehouse
		  linked to the financial warehouse.</ListItem>
         <ListItem>For each financial warehouse, overviews of all linked physical
		  warehouses and overviews of inventory by item, ownership, and physical
		  warehouse are available.</ListItem>
      </List>
      <Paragraph>In the <GUIRef href="/baanerp/wh/wmd/whwmd2500m000" role="session">Warehouses (whwmd2500m000)</GUIRef> session, the following fields are read-only for
		financial warehouses. Of these fields, check boxes are cleared and list options
		have value <GUIRef href="/baanerp/tc/domains/ynna#not.app" role="option">Not Applicable</GUIRef>:</Paragraph>
      <List>
         <ListItemHead> 
            <GUIRef href="/baanerp/wh/wmd/whwmd2500m000#whwmd2100sDF1" role="groupbox">General</GUIRef> tab</ListItemHead>
         <ListItem> 
            <List>
               <ListIntro>All fields except:</ListIntro>
               <ListItem> 
                  <Link href="/baanerp/wh/wmd/whwmd2500m000#tcmcs003.cadr" role="formfield">Address</Link>
               </ListItem>
               <ListItem> 
                  <Link href="/baanerp/wh/wmd/whwmd2500m000#tcmcs003.casi" role="formfield">Extra Intrastat Info</Link>
               </ListItem>
               <ListItem> 
                  <Link href="/baanerp/wh/wmd/whwmd2500m000#whwmd200.wvgr" role="formfield">Warehouse Valuation Group</Link>
               </ListItem>
               <ListItem> 
                  <Link href="/baanerp/wh/wmd/whwmd2500m000#whwmd200.diws" role="formfield">Default Item Warehouse Status</Link>
               </ListItem>
               <ListItem> 
                  <Link href="/baanerp/wh/wmd/whwmd2500m000#whwmd200.prva" role="formfield">Process Inventory Variances Automatically</Link>
               </ListItem>
            </List>
         </ListItem>
         <ListItemHead> 
            <GUIRef href="/baanerp/wh/wmd/whwmd2500m000#whwmds2500.30" role="groupbox">Relationships</GUIRef> tab</ListItemHead>
         <ListItem> 
            <List>
               <ListIntro>All fields except:</ListIntro>
               <ListItem> 
                  <Link href="/baanerp/wh/wmd/whwmd2500m000#tcmcs003.imbp" role="formfield">Business Partner</Link>
               </ListItem>
            </List>
         </ListItem>
         <ListItemHead> 
            <GUIRef href="/baanerp/wh/wmd/whwmd2500m000#whwmd200.sloc" role="groupbox">Locations</GUIRef> tab</ListItemHead>
         <ListItem>All fields</ListItem>
         <ListItemHead> 
            <GUIRef href="/baanerp/wh/wmd/whwmd2500m000#whwmds2110.02" role="groupbox">Lead Times</GUIRef> tab</ListItemHead>
         <ListItem>All fields</ListItem>
         <ListItemHead> 
            <GUIRef href="/baanerp/wh/wmd/whwmd2500m000#whinhs4530.08" role="groupbox">Handling Units</GUIRef> tab</ListItemHead>
         <ListItem>All fields</ListItem>
         <ListItemHead>Handling Unit Labels tab</ListItemHead>
         <ListItem>All fields</ListItem>
         <ListItemHead> 
            <GUIRef href="/baanerp/wh/wmd/whwmd2500m000#whwmd200.dycd" role="groupbox">Dynamic Cross-docking</GUIRef> tab</ListItemHead>
         <ListItem>All fields</ListItem>
      </List>
   </GeneralSection>
</ManualTopic>