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Transfer Order

Use this page to transfer inventory items between locations with a transfer order.

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

For a full description and more information on this page, see the Microsoft Dynamics 365 Business Central documentation .

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

Direct or Indirect Transfers

Transferring inventory from one location to another location can be performed directly or indirectly. With a direct transfer, an in-transit location cannot be used. The following table provides a summary example of General Ledger distributions.

Entry Type Distribution From Location (Entity 100) In-Transit Location (Entity 200) To Location (Entity 300) Due to/Due From
Indirect Transfer Shipping 100 200   Yes
Receiving   200 300 Yes
 
Direct Transfer Shipping 100 100   No
Receiving   100 300 Yes

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Processes

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

  1. In the header, select the Entity Code or accept the default value.

    2. This entity is the default value for the lines.

  2. For each line that you add, change the Entity Code as needed.
  3. Specify the other values for the lines.
  4. Process the transaction.

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Fields

This page contains the following fields: 

Field Description
Entity Code

Select the entity for the transaction. The default value is your default entity. If needed, you can select any entity to which you have access. When this entity is assigned to the transaction, you can access only the transactions to which you have entity access.

Lines
Entity Code

Displays the entity for the line. The default value is specified in the header. If needed, you can change the entity to any entity to which you have access.

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