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Item Reclassification Journals

Use this page to transfer inventory items between locations with the item reclassification journal.

For more information on transferring inventory, see the Microsoft Dynamics 365 Business Central documentation (Transfer Inventory Between Locations).

Example

Review the following inventory transfer examples.

Simple Transfer

For each location, an entity is defined. The entity for the location is used as follows:

Inventory Debit – entity of the To or New location
Inventory Credit – entity of the From or Old location

Transfer using Intercompany

When a transfer involves different entities, intercompany is used and Due to and Due from accounts are needed. Also, reversal transactions are created for non-inventory entries.

Intercompany Transfer Table
GL Accounts	Entity Selection	Intercompany
Inventory DR	Location To Location New	Yes, if entity to and entity from are different.
Inventory CR	Location From Location Old	Yes, if entity to and entity from are different.
CoGS/Adjustment DR	Location From Location Old	No, reversal transaction to be created
CoGS/Adjustment CR	Location To Location New	No, reversal transaction to be created

Example: In a transfer transaction of 100.00, inventory is transferred from entity 100 to entity 200. The entity in the header of the transaction is 000. This transfer has the following journal entries:

Intercompany Transfer Journal Entries Table
Dr 200 - Inventory		100		Created by Microsoft Dynamics 365 Business Central
	Cr 100 - Inventory		100	Created by Microsoft Dynamics 365 Business Central
Dr 100 - Due From 200		100		Created by MEM
	Cr 200 - Due To 100		100	Created by MEM
Dr 100 - CoGS		100		Created by Microsoft Dynamics 365 Business Central
	Cr 200 - CoGS		100	Created by Microsoft Dynamics 365 Business Central
Dr 200 - CoGS		100		Created by MEM - reversal
	Cr 100 CoGS		100	Created by MEM - reversal

Transfer Inventory

To transfer inventory from one location to another, follow the steps within the Microsoft Dynamics 365 Business Central documentation, and incorporate these steps:

In the header, do the following:
1. If the Entity Code is empty or you do not want to use the default entity, select an entity.
2. If needed, change the Batch Name.
The transaction lines are updated with transactions that have the same entity as the selected Entity Code and are in the specified Batch Name.
Select the current Location Code, and specify the New Location Code.

The Entity Code is updated based on the current Location Code. And the Department Code is updated based on the New Location Code.

Specify other values as needed.
Post the transfer.

If the entity of the current location and new location are different, intercompany distributions occur.

Fields

This page contains the following fields:

Field	Description
Entity Code	Select the entity for the transactions. The default value is your default entity. The default entity for the line is automatically updated with the entity value of the selected the customer, vendor, account, or item record. If needed, you can change it any entity to which you have access. When you select the entity, only the transactions in the batch that belong to the entity appear in the list. If the entity is empty, only transactions that do not have an entity appear in the list.
Lines
Entity Code	Displays the entity for the line. The default value is specified in the header. The default entity for the line is automatically updated with the entity value of the selected the customer, vendor, account, or item record. The selected entity filters the other records such that only the records that belong to that entity are available. For example, when entity 100 is selected, only the account numbers that belong to entity 100 are available. If needed, you can change the entity.
Applies-to Entry	Specify the entry number to which the quantity is to be applied. When you select the ellipses (…) for the cell, only the entries that have the same entity code as the selected line appear as options and can be selected.

Location Code

Select the location for the item. The entity code cannot be changed after the location is selected.

Actions

This page contains the following actions:

Journal Action Items Table
Action	Description
Page > Edit in Excel	When editing data in Microsoft Excel, a column has been added for the header entity (BssiBatchHeaderEntityID). When the data is opened in Excel, the records are filtered according to the batch header entity specified on the page. For existing lines, this value cannot be changed. For new lines, specify the value to determine which batch header entity the new line belongs. For more information, see the Microsoft Dynamics 365 Business Central documentation. Edit in Excel This action is not available for the Item Reclassification Journals.
Home > Process with Multiple Entities	Opens the MEM Mass Batch Processing page, where you can do the following types of actions: Post and print batches of journal lines. Delete batches of journal lines of specific entities. Note: The Process with Multiple Entities action has replaced the Post with Multiple Entities action as of MEM version 1.1.92.0. Use the Process with Multiple Entities action to open Mass Batch Processing where you can post and print batches.