Internal requisitions are used for samples and internal use.
Example A sales representative takes sample products to a trade show.
Using internal requisitions allows you to take product from inventory and expense it, but not put it into an accounts receivable account.
To use internal requisitions, set up the following in the Customer Service module:
In Customer Maintenance, create a customer, and select the Internal Customer check box on the Options tab. You can create one customer for each department in your company.
In Order Class Maintenance, create a Sales type order class, and select the Use for Internal Requisitions Only check box. Set up general ledger account masking for internal requisitions on the Accounts tab by entering the general ledger account for the internal requisition in the Cost of Goods Sold field.
In Customer Service Control Maintenance, move Order first in the Mask List for the COGS account on the Account Resolution tab. This indicates the system should use the entire general ledger account defined in Order Class Maintenance.
When an order is generated, whether it comes up with prices or not, it resorts to zero for the price of products ordered for an internal requisitions customer. You then follow normal order processing steps, such as creating and printing pick demand(s), confirming pick demand(s), adjusting inventory (manually or automatically), and creating an invoice. The invoice will be for 0.00. However, the posting of the invoice creates the inventory and cost of goods sold posting for the value of the inventory.
Note If inventory is unavailable for a product when creating an internal requisition order line item, you are asked whether you want to place a backorder for the product. If you click the Yes button, the backorder is created exactly as it would be for a customer order. If you click the No button, the line item is not created.