This article outlines the Internal Transfers feature. This feature allows you to transfer products at cost between restaurants in the same company and concept that share the same product database.
Setting up Internal Transfers
To setup internal transfers in your restaurant, navigate to Orders > Transfers. Once you get to the Transfers page, you will see the following setup page:
Internal Transfer Vendor Name
On the setup page, review the name of your Internal Transfer vendor. If you would like to change the name of your Internal Transfer vendor, update the name here. You will not be able to change the name of your Internal Transfer vendor once it has been created.
Next, you will want to set up your payment accounts. There are three different ways you can configure your payment account for internal transfers. For more information on each configuration, reference the help article here.
Completing Setup and Editing Payment Accounts
Once you have completed setting up your payment accounts, click the Complete Setup button. Once you've completed setup, your new Internal Transfer Vendor will have been created. If you need to edit your payment account configuration, you can go to Orders > Setup > Internal Transfers to configure your payment accounts.
Setup in Other Restaurants
Before you can start using the internal transfers feature, you will need to complete the same setup process in all other restaurant units in your company-concept.
Now that you've completed setup, you are ready now to start sending internal transfers!
To send an internal transfer, you will want to complete the following steps.
1 - Select the restaurant you are transferring to
Use the Transfer to: dropdown to select a restaurant unit to send the transfer to. Only restaurants within your company concept will show up in this list.
2 - Review the Transfer Date
The default transfer date is today's date. If you would like to record a transfer for the past or the future, you can edit the date here.
3 - Add your Products to Transfer
To add a product to your transfer, click the green Add Product button. This button will generate a new row.
Under the Product column, you can search through the list of products used within your restaurant. Once you select the product you would like to transfer, the unit and price will auto-populate using the product count-by and last ordered price. The unit cannot be changed.
4 - Specify how much product you are transferring
Once you've added your product, put in the amount you are transferring under the quantity column. The line price will automatically calculate based on the quantity x price.
5 - Review your product price
The product price will auto-populate with the last ordered price by default. If you would like to change the product price, you can do so by clicking on the price cell and typing in your desired transfer price.
6 - Record Transfer
Once you've completed adding all your products to your transfer, click the Record Transfer button to create a closed invoice for the internal transfer in both your sending and receiving restaurant units.
Once the transfer has been completed, you will see the internal transfer reflected in budgets and reports and be ready to export to accounting.
Frequently Asked Questions
How will this look in MarginEdge reporting?
In your sending location, you will see the value of the product you transferred subtracted from the purchased amount, and correspondingly the value of that transfer from your COGS reporting. In your receiving unit, the transfer will be added to the purchased quantity of that product and corresponding COGS category as if it was purchased from any other vendor.
How will this look in my accounting system?
At the sending location, a Journal Entry will be exported to your accounting system, crediting the appropriate COGS categories and debiting the other balance sheet account designated for these transfers. At the receiving location, an equal but opposite journal entry, crediting the balance sheet account and debiting the cost of goods. The net result will be that the expense moves from the sending location to the receiving location, but and the balance sheet account that accommodates the other sides of the transaction has a net balance of 0.
Can I change the price of the products when recording a transfer?
Yes! You can change a product's price when completing a transfer by clicking on the price and typing in your new desired product price.
When you change the product price, the price of the product in the sending restaurant will remain the same as your most recent purchase price. However, the product price in the receiving restaurant will update to the new price you specified when recording the transfer.
Keep in mind that if you increase the price of your product when recording a transfer, you may see a negative Cost of Goods sold in the restaurant that sent the transfer since the value of your transferred product is higher than the cost you paid to purchase the product. At this time, we do not support marking upcharges on products as sales.
Can I just transfer category totals?
Yes! To do so, you can create a new product to represent your category transfer and select that product for transfer.
For example, if you would like to transfer marketing expenses, you can create a new category called "Marketing Expenses", set the category allocation 100% to your category called "Marketing Expenses, specify the count-by as "1 Each", and any product price. Once you need to transfer a category total, you can select your product called "Marketing Expenses", set the quantity as 1, and then update the product price to whatever the category total transfer amount you would like to record.
How can I create a report showing me my transfers?
Check out this article on this topic.
Can I transfer recipes?
We do not support transferring recipes in this feature. You may want to use the commissary feature instead for recipe transfers.
I want to export these transfers as invoices to be received and bills to be paid?
We cannot export an invoice to accounts receivable so this is not possible, the only way to transfer products is as Journal entries as described above.
What is the difference between internal transfers and commissary transfers?
The Commissary Feature in MarginEdge is an in-app order management tool that allows you to convert recipes into products and transfer them from a designated central location to other restaurant units in your company concept. The Internal Transfers feature allows for bi-directional product transfers within your company concept.
You may have both the commissary and internal transfers feature in MarginEdge - included in the cost of your subscription.