Inventory Transfers

Move inventory between locations within your organization.

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Two Transaction Types

TRANSFER ORDER vs INVENTORY TRANSFER
─────────────────────────────────────────────────────────────────

INVENTORY TRANSFER (Simple/One-Step)
  └── Single transaction
  └── Instant movement
  └── No approval workflow
  └── Best for: Same facility, quick moves

TRANSFER ORDER (Formal/Multi-Step)
  └── Order → Fulfill → Receive
  └── Supports in-transit tracking
  └── Approval workflows possible
  └── Best for: Between facilities, shipping required

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Inventory Transfer (Simple)

A single transaction that instantly moves inventory between locations.

When to Use

Scenario	Example
Same building	Move from bin A to bin B
Quick reorganization	Shift stock between areas
No shipping required	Internal warehouse moves
No approval needed	Routine inventory moves

How It Works

INVENTORY TRANSFER FLOW
─────────────────────────────────────────────────────────────────

┌─────────────────────────────────────────────────────────────┐
│                  INVENTORY TRANSFER                          │
│                    (Single Transaction)                      │
│                                                             │
│  From: Warehouse A                                          │
│  To: Warehouse B                                            │
│  Item: Widget-A (20 units)                                  │
│                                                             │
│  Result: INSTANT                                            │
│    Location A: -20 units (immediate)                        │
│    Location B: +20 units (immediate)                        │
│                                                             │
└─────────────────────────────────────────────────────────────┘

GL Impact (Inventory Transfer)

Account	Debit	Credit	Why?
Inventory - Location B	$200		Items at destination (Asset ↑)
Inventory - Location A		$200	Left source (Asset ↓)

Note: Net inventory value unchanged - just moves between locations.

Inventory Impact (Inventory Transfer)

INSTANT INVENTORY MOVE
─────────────────────────────────────────────────────────────────

BEFORE:
  Location A: 100 units
  Location B: 50 units

INVENTORY TRANSFER: 20 units from A to B

AFTER (Immediate):
  Location A: 80 units  (-20)
  Location B: 70 units  (+20)

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Transfer Order (Formal)

A multi-step process with order, fulfillment, and receipt stages.

When to Use

Scenario	Example
Different facilities	Ship between warehouses
Shipping required	Actual carrier/freight
In-transit tracking	Know what's "on the truck"
Approval workflows	Manager approval needed
Documentation	Need shipping records

Transfer Overview

TRANSFER ORDER FLOW
─────────────────────────────────────────────────────────────────

┌─────────────────┐     ┌─────────────────┐     ┌─────────────────┐
│ TRANSFER ORDER  │     │  FULFILLMENT    │     │    RECEIPT      │
│   (Created)     │ ──▶ │  (Ship from A)  │ ──▶ │   (Receive B)   │
│                 │     │                 │     │                 │
│  GL: None       │     │  GL: In Transit*│     │  GL: Location   │
│  Inv: Committed │     │  Inv: A ↓       │     │  Inv: B ↑       │
└─────────────────┘     └─────────────────┘     └─────────────────┘

* If using In-Transit location/account

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Creating a Transfer Order

What Happens

Action	Result
Create TO	Transfer order saved
Select from/to locations	Source and destination set
Add items	Items committed at source
Status	Pending Fulfillment

Transfer Order Creation

TRANSFER ORDER CREATION
─────────────────────────────────────────────────────────────────

Transfer Order #TO-001
├── From: Warehouse A
├── To: Warehouse B
├── Items:
│   ├── Widget-A: 20 units
│   └── Widget-B: 15 units
└── Status: Pending Fulfillment

Result:
  - Items committed at Warehouse A
  - No GL entry yet
  - Waiting for fulfillment

Inventory Impact (Order Created)

INVENTORY ON TRANSFER ORDER
─────────────────────────────────────────────────────────────────

Warehouse A (Before):
┌─────────────────────────────────────────┐
│ Widget-A: On Hand: 100, Committed: 0    │
│           Available: 100                │
└─────────────────────────────────────────┘

Warehouse A (After TO Created):
┌─────────────────────────────────────────┐
│ Widget-A: On Hand: 100, Committed: 20   │
│           Available: 80                 │
└─────────────────────────────────────────┘

Warehouse B: No change yet

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Fulfilling a Transfer

Ship items from the source location.

What Happens

Action	Result
Fulfill from TO	Items shipped from source
Set shipped qty	Quantity leaving source
Carrier info	Tracking number recorded
Status	In Transit / Pending Receipt

Transfer Fulfillment

TRANSFER ORDER FULFILLMENT
─────────────────────────────────────────────────────────────────

Transfer Order #TO-001
         │
         ▼
Item Fulfillment #IF-001
├── From: Warehouse A
├── Items Shipped:
│   ├── Widget-A: 20 units
│   └── Widget-B: 15 units
└── Status: Shipped

Result:
  - Warehouse A On Hand decreases
  - Items now "in transit"

Inventory Impact (Fulfilled)

INVENTORY AFTER FULFILLMENT
─────────────────────────────────────────────────────────────────

Warehouse A:
┌─────────────────────────────────────────┐
│ Widget-A: On Hand: 80 (-20)             │
│           Committed: 0                  │
│           Available: 80                 │
└─────────────────────────────────────────┘

In Transit (if using transit location):
┌─────────────────────────────────────────┐
│ Widget-A: On Hand: 20                   │
└─────────────────────────────────────────┘

Warehouse B: No change yet (waiting)

GL Impact (Fulfillment)

Without In-Transit tracking:

No GL entry - inventory moves on receipt.

With In-Transit location:

Account	Debit	Credit	Why?
Inventory In Transit	$200		Items in transit (Asset ↑)
Inventory - Location A		$200	Left source location (Asset ↓)

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Receiving a Transfer

Receive items at the destination location.

What Happens

Action	Result
Receive from TO	Items received at destination
Confirm qty	Quantity received recorded
Inspect	Verify condition
Status	Received

Transfer Receipt

TRANSFER ORDER RECEIPT
─────────────────────────────────────────────────────────────────

Transfer Order #TO-001
         │
         ▼
Item Receipt #IR-001
├── To: Warehouse B
├── Items Received:
│   ├── Widget-A: 20 units
│   └── Widget-B: 15 units
└── Status: Received

Result:
  - Warehouse B On Hand increases
  - Transfer complete

Inventory Impact (Received)

INVENTORY AFTER RECEIPT
─────────────────────────────────────────────────────────────────

Warehouse A:
┌─────────────────────────────────────────┐
│ Widget-A: On Hand: 80 (no change)       │
└─────────────────────────────────────────┘

In Transit:
┌─────────────────────────────────────────┐
│ Widget-A: On Hand: 0 (cleared)          │
└─────────────────────────────────────────┘

Warehouse B:
┌─────────────────────────────────────────┐
│ Widget-A: On Hand: 20 (+20)             │
│           Available: 20                 │
└─────────────────────────────────────────┘

GL Impact (Receipt)

Without In-Transit tracking:

Account	Debit	Credit	Why?
Inventory - Location B	$200		Items at destination (Asset ↑)
Inventory - Location A		$200	Left source (Asset ↓)

With In-Transit location:

Account	Debit	Credit	Why?
Inventory - Location B	$200		Items at destination (Asset ↑)
Inventory In Transit		$200	Cleared transit (Asset ↓)

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One-Step vs Two-Step Transfers

One-Step Transfer

Items move instantly (no in-transit period):

ONE-STEP TRANSFER
─────────────────────────────────────────────────────────────────

Transfer Order → Complete

Location A: -20 units (immediate)
Location B: +20 units (immediate)

Use when:
  - Same building/facility
  - Instant movement
  - No transit time needed

Two-Step Transfer

Items go through in-transit:

TWO-STEP TRANSFER
─────────────────────────────────────────────────────────────────

Transfer Order → Fulfill → Receive

Day 1: Fulfill (Ship from A)
        Location A: -20
        In Transit: +20

Day 3: Receive (Arrive at B)
        In Transit: -20
        Location B: +20

Use when:
  - Different facilities
  - Actual shipping required
  - Need to track transit

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Partial Transfers

Transfer only part of the ordered quantity:

PARTIAL TRANSFER SCENARIO
─────────────────────────────────────────────────────────────────

Transfer Order #TO-001: 100 units
    │
    ├── Fulfillment #1: 40 units
    │   └── Status: Partially Shipped
    │
    ├── Fulfillment #2: 35 units
    │   └── Status: Partially Shipped
    │
    └── Fulfillment #3: 25 units
        └── Status: Fully Shipped

Each fulfillment creates separate receipt

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Quick Reference

Inventory Transfer vs Transfer Order

Aspect	Inventory Transfer	Transfer Order
Steps	Single transaction	Order → Fulfill → Receive
Speed	Instant	Multi-step
In-Transit	No	Yes (optional)
Approval	No	Yes (optional)
Use Case	Internal moves	Between facilities
Complexity	Simple	More control

Transfer Order Stages

Stage	GL Impact	From Location	Transit	To Location
Order Created	None	Committed ↑	—	—
Fulfilled	Yes*	On Hand ↓	↑	—
Received	Yes	—	↓	On Hand ↑

*If using in-transit tracking

Transfer Order Statuses

Status	Meaning
Pending Approval	Needs approval
Pending Fulfillment	Ready to ship
Partially Fulfilled	Some shipped
Pending Receipt	Shipped, awaiting receipt
Partially Received	Some received
Received	Complete
Closed	Finalized

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Next Steps

• Adjustments - Inventory adjustments
• Physical Counts - Inventory counting