Home > Inventory > Transfers > Concepts > Transfers

Transfers

When you need to move inventory from one location to another, you need to do a transfer. There are two types of transfers.

The first type of transfer is when you are move stock internally from one location to another within the same venue. For example, you need to move the stock from the bottleshop to the bar. In this case, you can be sure the items will be moved from one location to the other immediately.

When a transfer is made in the system, stock will be decremented in one location and incremented in another immediately. This is called an Internal Transfer. An important point about internal transfers is that they allow you to transfer an item from one location to another, but they also allow you to transfer one item into another. For example, you might have a bottle of scotch set up in the bottleshop with a unit of measure of 700ML and this gets transferred to a generic scotch item in the bar with a unit of measure of NIP. The system will convert the quantities based on the units of measure. So 1 700ML bottle would become 30 NIPs. The key point about transferring between items is that both items must have compatible units of measure.

The second type of transfer occurs over two separate locations. The first (requesting) location makes a request to a second location - 'can you send me 2 units of BAKED BEANS?'. The second (sending) location will send the stock they have available. The requesting location updates the original request to show what was received. This type of transaction cannot be handled by a single inventory transaction. The requesting location needs to create a Transfer Request transaction. This will have the effect of increasing the On Order quantity for that location. The system will automatically create a Transfer Send transaction for the sending location. That location updates the Transfer Send transaction to show how much stock is being sent. This will increase the In Transit quantity for the sending location. It will also alter the original transfer request to show how much stock is being sent. When the requesting location receives the stock, it recalls the original transfer request and updates it to show how much stock was actually received. This will have the effect of:

If the quantity of stock received was not the same as the quantity of the stock sent, a stock adjustment will be created for the sending location to show that stock was lost in transit.

There has been an amendment to allow items requested by a transfer to be marked as allocated at the sending location as per customer orders. This amendment is only performed when the Allocate Transferred Stock check box within the Inventory tab of System Settings is checked.

If the Adjust send loc. SOH on Transfer Send Accept check box within the Inventory tab of System Settings is checked the behaviour of Transfer Request/Send changes:

1. When the Transfer Send is 'Sent', the SOH at the sending location is adjusted immediately and In Transit is set for the item.

2. When the Transfer Request is 'Accepted', and there is a variance, a Stock Adjustment is created at the requesting location rather than the sending location.

Additional items can be added to a Transfer Request once the Transfer Send has been sent. This covers scenarios where the warehouse has sent extra items than requested. When further items are added to the Transfer Request they are entered by default as 'Received'. The user cannot change this.

The system automatically updates the 'Units Sent' to the value entered in 'Units Received'. The Transfer Send is also updated automatically to reflect the added items.

When the transfer is finally accepted, the stock is adjusted at the sending location (warehouse) and at the receiving location (store).

The Avg cost gets changed in two scenarios :

1. If the COGS Method is set to 'FIFO' in the POS1 tab of System Settings and when there is two batches with different landed costs, when the transfer takes place from one location to another the Avg Cost is recalculated since the transfer goods would not have got transferred with Avg Cost. If the COGS Method is set to any other method in this scenario the Avg Cost will not change.

2. If the transfer is initiated and goods are sent at one price but not yet received at the requested location. In the meantime if another batch of goods is received with a different landed cost then the Avg Cost is recalculated. On receiving the goods the Avg Cost is recalculated for the sending location.

Converted from CHM to HTML with chm2web Pro 2.85 (unicode)