The quick answer
Go to Transactions > Inventory > Enter Transfer Orders. Set From Location, To Location and the item quantity, then save. Approve the order if it starts at Pending Approval, click Fulfill and save the item fulfillment as Shipped, then click Receive on the order and save the item receipt. On-hand quantity leaves the source when the fulfillment ships and arrives at the destination when the receipt is saved. Approval alone moves nothing.
The example moves 30 TR-40 Trail Lanterns from Denver Warehouse, which has 120, to Salt Lake Store, which has 8. The item's Locations list shows where those 30 units are after shipment and after receipt. The screenshots use sample data and fictional person and operating-company names.
Before you start
Transfer orders need the Multi-Location Inventory feature, which an administrator turns on at Setup > Company > Enable Features on the Items & Inventory subtab. A standard transfer order moves stock between two locations in the same subsidiary. Moving stock between subsidiaries in OneWorld uses an intercompany transfer order, which this guide doesn't cover.
Your role needs to create, approve, fulfill and receive transfer orders, and it needs access to both locations and the item. Custom roles and location restrictions vary, so check this before you start rather than halfway through a shipment.
The Default Transfer Order Status accounting preference decides whether a new order starts at Pending Approval or Pending Fulfillment. The account in this example defaults to Pending Fulfillment, and the order was set to Pending Approval on entry to show the approval step. Whether you can change Status on entry depends on your form, role and any approval workflow. If your orders skip approval, go straight from saving to fulfillment.
If Pick, Pack and Ship is enabled, a fulfillment can be saved as Picked or Packed first. The order is ready to receive once the fulfillment is saved as Shipped. This example saves it as Shipped directly.
The example assumes Denver has at least 30 available, the item doesn't use bins, lots or serial numbers, and all 30 units ship and arrive in one go. If your item uses bins, lots or serial numbers, expect to fill in Inventory Detail on the fulfillment and receipt.
01. Check stock at both locations
Open the item and find the Locations list. In the example, Denver Warehouse has 120 on hand and Salt Lake Store has 8. Nothing is committed, on order or in transit yet. Write these numbers down so you can compare them later.
02. Enter the transfer order
Go to Transactions > Inventory > Enter Transfer Orders. Set From Location to Denver Warehouse and To Location to Salt Lake Store. Check Subsidiary, Date and Incoterm against your own process; the example keeps the defaults. Incoterm doesn't appear on every form. Set Status to Pending Approval if your process uses approval.
On the Items subtab, select TR-40 Trail Lantern, enter 30 in Quantity and click Add. The line shows 120 available at Denver. The 18.50 transfer price and 555.00 amount come from this example's item setup; your transfer price depends on the item and the Use Item Cost as Transfer Cost setting. Click Save.
The saved order, TO-1042, shows Pending Approval. Its line shows 0 committed and 0 fulfilled.
03. Approve the transfer order
Click Approve. The status changes to Pending Fulfillment, the line shows 30 committed, and a Fulfill button appears. Approval commits the quantity at Denver and normally counts it as on order at Salt Lake. How much gets committed in your account depends on availability and the line's commitment settings. Nothing has shipped, so neither location's on-hand quantity has changed. The example doesn't reopen the Locations list at this point.
04. Ship the transfer
Click Fulfill. On the item fulfillment, check that Created From shows the transfer order and the line ships 30 from Denver Warehouse. Set Status to Shipped and save. The example fulfillment is IF-2210. The fulfillment is Shipped; the transfer order itself moves to Pending Receipt.
Open the item's Locations list again. Denver Warehouse now shows 90 in Quantity On Hand, 0 committed and 30 in Quantity In Transit. Salt Lake Store still has 8 on hand and shows 30 in Quantity On Order. In this example the in-transit quantity sits on the source location's row. Check your own item's Locations list after a shipment to see how your account reports it.
05. Receive the transfer
Open the transfer order. It's now Pending Receipt, with a Receive button.
Click Receive. Check that the item receipt lists 30 TR-40 Trail Lanterns going to Salt Lake Store with Receive checked, then save. The example receipt is IR-3307. If fewer units physically arrived, receive what arrived; a partial receipt leaves the order open until the rest comes in.
The transfer order now shows Received, with 30 fulfilled and 30 received on the line.
Go back to the item's Locations list for the last check. Salt Lake Store shows 38 on hand and nothing on order. Denver Warehouse shows 90 on hand and nothing in transit.
Here's where the 30 lanterns were at each Locations check:
- Before the transfer: Denver 120 on hand, Salt Lake 8 on hand, nothing on order or in transit.
- After shipment: Denver 90 on hand with 30 in transit, Salt Lake 8 on hand with 30 on order.
- After receipt: Denver 90 on hand, Salt Lake 38 on hand, nothing on order or in transit.
If your numbers match that pattern and the order shows Received, the transfer is done. If the destination still shows on order or the source still shows in transit, look for a partial fulfillment, a partial receipt or a fulfillment that isn't Shipped yet.
Common questions
What's the difference between a transfer order and an inventory transfer?
An inventory transfer moves stock in one transaction. The source goes down and the destination goes up when you save it, with no approval, shipment or in-transit stage. A transfer order splits the move into approval, fulfillment and receipt, so you can see the units as committed, on order and in transit along the way. Use a transfer order when the goods take time to get there and someone needs to track them.
When does on-hand quantity change on a transfer order?
Only at shipment and receipt. Saving or approving the order leaves on hand alone. In this example, Denver went from 120 to 90 when the item fulfillment was saved as Shipped, and Salt Lake went from 8 to 38 when the item receipt was saved.
Why does my transfer order stay Pending Approval?
Someone with approval rights hasn't approved it yet. The Default Transfer Order Status preference, or an approval workflow in your account, decides whether new orders start there. You can't fulfill the order until it moves to Pending Fulfillment.
Where can I see inventory in transit between locations?
Open the item and check the Locations list. After the shipment in this example, the 30 lanterns showed in Quantity In Transit on the Denver Warehouse row and in Quantity On Order on the Salt Lake Store row. Both cleared once the receipt was saved. Check a shipped item in your own account to confirm which row carries the in-transit quantity.
Why can't I receive a transfer order yet?
There's nothing shipped to receive. The order has to be approved, if your account requires approval, and then fulfilled with the item fulfillment saved as Shipped. With Pick, Pack and Ship turned on, a fulfillment that's only Picked or Packed isn't enough. Once it's Shipped, the order shows Pending Receipt and the Receive button appears.
What do Incoterm and Use Item Cost as Transfer Cost change?
They affect ownership terms and how the transfer is valued. The quantity flow in this guide is the same either way. Incoterm records who's responsible for the goods in transit. Use Item Cost as Transfer Cost decides whether the item's cost or the transfer price values the move. Check both with whoever owns your inventory accounting.