In terms of retailers having numerous stores, the issue of separation between the front office and the back office is quite infamous. RMH does well when it comes to processing high velocity transactions and inventory for local stores, whereas BC does a better job with accounting consolidation and logistics. In a multi-store setting, the process of integrating the two software applications is crucial in ensuring that the process of accounting and inventory control remains accurate.
A proper process of inventory synchronization can be achieved through effective mapping of the data involved.
1. Creating the “Location” Cross Reference
The very first thing needed for the multi-location integration to work is matching RMH stores to BC Locations. Every store in RMH has a unique Store ID. Inventory in Business Central is kept based on the Location Code, such as “BOSTON,” “NY,” “WAREHOUSE.”
Your integration algorithm should incorporate a fixed cross reference list. Otherwise, you will not be able to assign the location to an incoming inventory transaction from RMH. The system will put it into an empty location. This will lead to losing information about the branch where assets can be found. The list of locations is also important for processing Transfer Orders correctly.
2. “Master” Data Problem
It is also necessary to determine which of the systems will become the “Master” for item creation. According to industry best practices, Business Central should become the master and create new Item Cards. Whenever a new SKU card is created in BC, it must be synchronized across all active RMH stores.
RMH gives the possibility to use different pricing for each store. Therefore, if BC creates a standard price for the SKU, it might use sales price lists to define different prices for each store.
3. Managing Inventory Flows: Sales versus Transfers
Perhaps the single biggest technical issue is identifying whether what’s happening is a sale which uses up inventory, or a transfer which moves it around.
For Sales: Whenever there’s a sale at an RMH register, this will result in a posted sales invoice in BC against the relevant Location Code. Hence, reducing its Quantity on Hand in near-real time (or via batch processing).
For Inventory Transfers: If transfer takes place in BC locations then it should goes as Transfer In and Transfer Out in RMH rather than a sale of products from Store A and purchase of same from Store B, since otherwise, you’ll skew your COGS numbers.
4. Physical Counts and Adjustments
Differences will occur. In case of discrepancy in RMH store physical count (for example, discovering 10 damaged goods or goods missing), enter an adjustment. Use Item Journal for making adjustments in BC. The mapping in the integration layer should ensure that the reasons for the RMH adjustment (such as Damage, Theft, Shrinkage) are mapped to certain G/L Accounts in BC.
Conclusion
Integration of RMH and Business Central in several locations can prove to be quite a tricky procedure. However, through mapping the Store IDs to location codes and differentiating sales from transfers, as well as entering proper physical adjustments, you ensure accuracy. This will guarantee consistent figures, regardless of whether you are viewing them on the POS screen in one of the stores or on the balance sheet in headquarters.
