Assign each site a general ledger (GL) entity for financial reporting. Multiple sites can belong to the same entity. The system uses the site you specify in each inventory transaction to determine:

Many inventory transactions, such as issues to and receipts from manufacturing and purchasing orders, affect only one site. Other transactions, such as distribution order shipments and receipts or inventory transfers, let you transfer items from one site to another.

When inventory transactions affect more than one site, costs may differ between the two sites. Cost variances are posted to the Transfer Variance account defined for the item product line and site in Inventory Account Maintenance, if available. Otherwise, the account defined for the site in Site Maintenance is used.

A site can be used as the source for GL costs at other sites. When GL costs are updated at the source site, the system automatically generates cost adjustment transactions at any target sites. Site-linking rules are set up in Linked-Site Rules Maintenance (30.18.1).

See QAD Costing User Guide for details on linked-site costing.