Inventory items management

[IP0707]

Hi everyone, 

we use Concur mostly to manage our travel expenses, but some of our employees also buying items with their credit cards which go into Cocncur, but actually needs to go into inventory. 

Does anyone have a suggestions how we can manage it? thank you.

[KevinD]

@IP0707 Great question. I believe some of our customers will use a Purchasing Card for business expenses that are not related to travel. If you are using a company credit card for travel expenses, you may want to reach out to the bank that provided the card and see if they offer a Purchasing Card. 

You may also consider creating new expense types specifically for these inventory type expenses. This allows for these inventory items having their own GL/Account Codes for tracking purposes. 

I'll be curious to see what others here on the Community might suggest. 

[IP0707]

Hi Kevin,

Thank you so much for your advice, the issue I am facing is that the items that are being purchased are different all the time, they are changing a lot and it is not consistent.

[KevinD]

@IP0707 In that case, you may need to come up with a plan internally on how to handle this. You could have new expense types created that can only be used for these types of purchases and enforce it with an Audit Rule. The expense types might have to be named something somewhat generic to account for the varying items being purchased. 

I think a Purchasing Card (P-Card Program) is really worth considering. With this, you can easily create an audit rule that won't allow p-card purchases to be mixed on the same report as company card (T&E) purchases. 

[crsmurthy88]

Hi Kevin

In the case where we have a GL item for P-card purchases for inventory, how are items received at the warehouse and how is the Goods receipt / invoice receipt account cleared? Is there a business model/practice for this?

Thank you

Srini

[KevinD]

@crsmurthy88 that sounds like it falls under Procurement. Our Invoice tool could possibly be used for this since through Concur Invoice, you can do purchase requests and Purchase Orders. This allows for processing POs for purchased goods. The PO goes to the vendor who ships the items, then the sends you an invoice for the goods that gets input into SAP Concur. This allows you to have a record of the received goods. 

Supply Chain isn't my area of expertise, but other companies have other ERP systems that they use to input goods received. It is difficult for me to really provide a best practice because my experience in Supply Chain is limited.

[JessicaL]

Are they using a Company Credit Card or their Personal Credit Card? If Company Credit Card, we do have two programs as Kevin suggested. But, we block MCCs on both programs. This way, it limits what can be purchased with the cards. That wouldn't be possible with personal credit cards, though. 

[Munari_alEXPert]

dear @IP0707 

you should have the program split between corporate credit cards and Purchasing cards.

No many people should have PCards so having the option to buy inventory items.

What you could do right now would be to tell those people to stop buying Inventory Items from their company credit card and have those item going via AP so Invoices until you will have in place a new card and feed for Pcards. Otherwise, your accounting department will need to re-class each time the expenses of those people, which is longer time consuming than just booking an invoice.