For customers using Financial Reporting (Costing) and/or Contract Storage of spirits, Whiskey Systems uses "Reason for Transfer" to ensure accurate financial reporting as well as maintaining ownership (title) of spirit.
In most cases, especially for smaller distilleries, the correct option to choose will be Purchased.
Each Reason is listed below with an explanation of its purpose.
» For Transfer Out Reasons, review the following resource: Transfer (TIB) Out Reasons: What do they mean?
Purchased
Use Cases
- You bought this tote/spirit/barrel and it is now your asset, or
- Someone else bought the tote/spirit/barrel and you plan to perform processing, blending or bottling on it (e.g. contract bottling).
Financial Implications
- Cost plus shipping is added to WIP (debit to increase) and comes out of AccountsPayable (credit to decrease).
- If receiving multiple vessels or barrels, Cost plus shipping will be spread equally over the assets.
Back From Storage
Use Case
- You previously sent this tote/spirit/barrel out to another distillery for storage.
Financial Implications
- The batch value is added to WIP (debit to increase) and comes from OffsiteAssets (credit to decrease).
- This transaction round-trips if you originally transferred the assets out with the "Contract Storage" Reason selected.
- That original transfer-out would have removed value from WIP (credit to decrease) and added value to OffsiteAssets (debit to increase).
Contract Storage Don't Own
Use Case
- You are storing this tote/spirit/barrel for someone else; you do not own (hold title to) it.
- You must select a "Spirits Owner" (see Owners (Read Time: 1 min)) and the owner can be different from the sending DSP.
Warning: You will not be able to dump or manipulate the tote/spirit/barrel; the only action you will be able to do in the future is return it, via TIB, to another distillery. If you will be dumping the barrel, use Purchased instead.
Financial Implications
- Since you do not own the asset, there are no financial transactions logged upon TIB Receipt with reason Contract Storage Don't Own.