Transfer orders are used for movement of inventory from one warehouse location to another. The process is designed in a manner that creates the necessary general ledger entries for the accounts affected by inventory being transferred from one location to another.
To process a transfer order:
In Order Entry, enter a transfer order.
Enter a Transfer type order class in the Order Class field.
Enter the location prefix of the location to which goods will be transferred in the Transfer to Prefix field.
Verify/change order entry defaults, such as the shipping and sales location, required date, ship complete, ship backorder complete, freight free, etc.
Add order notes and/or remarks if necessary using the Notes or Remarks button in the ribbon.
Click the Ship To tab, and verify/change the ship-to address. It defaults to the transfer-to location's ship-to address entered in Location Maintenance, or if that address is not available, the transfer-to location's physical address.
Click the Bill To tab, and verify/change the bill-to address. It defaults to the transfer-to location's bill-to address entered in Location Maintenance, or if that address is not available the transfer-to location's physical address.
Click the Edit Items button in the ribbon. The O/E Line Item Entry window appears.
Enter a product code in the Product Code field.
Note If a product location record does not exist for the selected product, it cannot be sold from the transfer-to location. An error message appears, and prompts you to select a different product. To create a record, use Product Location Maintenance.
Review the quantity available, quantity allocated, and quantity on order information for the selected product.
Enter the quantity to order in the Quantity field. If you are using express order entry, the line item is added to the Items grid, and you can skip to substep l.
If you are not using express order entry, verify/change the unit of measure, then click the Enter button to enter the line item in the Items grid.
If the product is backordered, a promise date can be calculated. For information, see Promise Dates.
Verify all settings in the Items grid.
Note Additional charges cannot be entered for transfer order line items.
Add notes and/or remarks for a line item if necessary using the Notes or Remarks button in the ribbon.
Repeat substeps h to n for all products for the transfer order.
Click the OK button in the ribbon.
Note Additional charges cannot be entered for transfer orders.
Click the OK button in the ribbon. The order is created. The order status is now Open.
Note A pick demand is printed automatically after the order is created if the order class is set up with the Print Pick Demands from Order Entry check box selected in Order Class Maintenance. If the pick demand is printed automatically, you can skip to step 3.
In Pick Demand Create and Print, create and print pick demands for allocated products on the order. The order status is now In Pick. When you perform this step, accounts receivable and accounts receivable discount accounts are resolved for the order.
In Pick Demand Confirm, confirm the pick demand. The order status is now Partially Confirmed if not all ordered products were picked and confirmed or Fully Confirmed if all ordered products were picked and confirmed. You can also use Pick Demand Cancel to return an order to Open status if necessary.
In Confirmed Pick Demand Inventory Adjust, adjust inventory. When you perform this step, all remaining general ledger accounts are resolved for the order. If the accounts resolve correctly, the order status is now Ready to Invoice, and you can skip to step 6.
Note This process generates a purchase order for the transfer-to location. The purchase order will be receipted by that location.
If general ledger accounts do not resolve correctly, correct the accounts in Pick Demand Account Resolution Update. The order status is Bad Accounts until you correct the accounts. Users set up for general ledger account exceptions in Location Exception Notification Setup will receive an email if errors occurred.
In Invoice Create and Print, prep the transfer order. You must use a valid open batch and posting period and year.
In Invoice Post, post the transfer order to the general ledger. The posting period and year must be the posting period and year selected in step 6.
In Receiving Entry, generate a receipt.
Enter the transfer-to location from the transfer order in the Ship to Location field.
Enter the receiving dock in the Dock field.
Select the Transfers radio button. Transfer orders to be received display in the grid.
If you want to filter purchase orders in the grid, select a single location, buyer, and/or originator.
Select the purchase order you want to receive.
Click the Receipt button in the ribbon. The Purchase Order Receipt window appears and allows you to receive by line item or as is for the entire receipt.
Click the OK button in the ribbon. The receipt is created.
In Inventory Receipt Post, post the receipt.
Select the posting period or select the All Periods check box to post for all periods.
Enter the transfer-to location in the Location field, or select the All Locations check box to post for all locations
If you know the date of receipt, enter that date in the From Date field. You can also select a date range or select the All Dates check box.
Click the Print Options tab and select output and processing options.
Click the OK button in the ribbon. The posting is completed.
In Inventory Matrix Inquiry, verify inventory records to be certain that goods have transferred correctly. Verify the on-hand quantity, available quantity, allocated quantity, inventory at each location, bin quantities, and lot quantities (for lot-tracked products only).
A transfer order number’s prefix is derived from the sales location prefix and defaults from the transfer-to location prefix.
A transfer purchase order number’s prefix is derived from the transfer-to location of the order. The transfer-from location on the purchase order is the order’s shipping location.
Transfer orders are generated at zero cost.
A transfer purchase order cost is derived from the transfer order’s shipping location product-location record (or the transfer-from location on the purchase order). The product-location record must have a cost loaded in the field that represents the accounting cost basis of the product (example: Accounting Cost equals Average Cost. The Average Cost field should have a cost entered).
A transfer order is shipped from location AA and transferred to location BB. The sales location for the transfer order defaults to BB. The order is for 2 units (sold in unit of measure of Each) of product number 123. The cost loaded at the product-location level for location AA is $150 and the cost basis is Average Cost for both accounting cost and sales cost.
The order number is generated as BB000000001 and is for $0.00. Pick demand is generated from an order’s shipping location, therefore the pick demand number is AA000000001. The pick demand is successfully confirmed, and inventory is adjusted. The transfer purchase order is generated with a purchase order number of BB000000001 for $300.00.
For more information, see Transfer Orders Posting Effect on the General Ledger and Transfer Order Effect on Inventory.