Extended Inventory ScenariosLesson 3

Processing Two-Step Inventory Transfers

Back to D200: Inventory Order Management Extended Scenarios

Lesson 3: Processing Two-Step Inventory Transfers

Part 1: Extended Inventory Scenarios

This lesson explains how you can transfer stock items between warehouses by using a two-step transfer and how you can find information about items in transit.

Two-Step Transfers: General Information

If your organization uses multiple warehouses to store items, you may need to transfer stock items between warehouses. To record stock movements between warehouses in Acumatica ERP, you use a two-step transfer— that is, you first issue the required quantity of items from a source warehouse, and you then receive the items in the destination warehouse.

Learning Objectives

In this lesson, you will do the following:

  • Record the movement of stock items between warehouses by using a two-step transfer
  • Find information about items in transit

Applicable Scenarios

You may need to use two-step transfers when you need to track movements of items between warehouses. A two- step transfer can reflect a movement between warehouses in different towns (which may take up to multiple days) or a movement between warehouses that are close to each other (which may take up to several hours).

Two-Step Transfer Process For a two-step transfer, you create both of the following documents:

  1. Transfer of the 2-Step type: You create this document by using the Transfers (IN304000) form. When this document is released, the on-hand quantity of the items in the source warehouse is decreased.
  2. Transfer receipt: When the transferred items are received, you create an inventory receipt for this transfer on the Receipts (IN301000) form by selecting the reference number of the transfer in the Transfer Nbr. box. When you select this number, the relevant settings of the transfer, including the detail lines, will be inserted in the transfer receipt. When the receipt is released, the on-hand quantity of the items in the destination warehouse is increased.

Workflow of a Two-Step Inventory Transfer For a transfer of items between warehouses, the typical processing involves the actions and generated documents and transactions shown in the following diagram.

Costs of Transferred Items

Moving stock items between warehouses usually requires some time. Items that have been issued from a source warehouse and have not been delivered to a destination warehouse are regarded as being in transit. The costs of items in transit are recorded temporarily to the In-Transit account, which is specified in the In-Transit Account box on the Inventory Preferences (IN101000) form (Account Settings section of the General tab). When the items are received at the destination warehouse, their costs are transferred to the appropriate inventory account. For details, see Two-Step Transfers: Generated Transactions. The costs the transferred items will have in the destination warehouse depend on the valuation methods assigned to the items on the Stock Items (IN202500) form. For items with the Average and Standard valuation methods specified in the Valuation Method box, the cost of an item in the destination warehouse will be the same as the cost of the item at the source warehouse. For an item with the FIFO or Specific valuation method, a transfer receipt creates a new cost layer with the transferred quantity of the item and with the number and date of this transfer receipt. Two-Step Transfers: Process Activity

In the following activity, you will learn how to move stock items between warehouses by using a two-step transfer.

Story

Suppose that you are a purchasing manager in the retail shop of the SweetLife Fruits & Jams company. You have ordered 50 pounds of apples directly from a supplier. When the apples were delivered to the warehouse of the retail shop, you realized that the warehouse has space only for 30 pounds of apples. To address this problem, you have decided to send 20 pounds of these apples to the wholesale warehouse. You will create all required documents in Acumatica ERP to register in the system these transactions.

Configuration Overview

In the U100 dataset, for the purposes of this activity, the following tasks have been performed:

  • On the Enable/Disable Features (CS100000) form, the following features have been enabled:
  • Inventory and Order Management, which provides the standard functionality of inventory and order management
  • Inventory, which gives you the ability to maintain stock items by using forms related to the inventory functionality and to create and process sales and purchase documents that include stock items
  • Multiple Warehouses, which gives you the ability to have multiple warehouses in the system
  • Multiple Warehouse Locations, which gives you the ability to configure multiple locations for each warehouse
  • On the Warehouses (IN204000) form, the WHOLESALE and RETAIL warehouses and the MAIN location for each of these warehouses have been created.
  • On the Stock Items (IN202500) form, the APPLES stock item has been created.
  • On the Vendors (AP303000) form, the GLORYFRUIT vendor has been created.

Process Overview

In this activity, you will do the following:

  1. On the Purchase Orders (PO301000) form, process a purchase order and purchase receipt for items.
  2. On the Inventory Allocation Details (IN402000) form, make sure that the items are available in the source warehouse.
  3. On the Transfers (IN304000) form, create a transfer of the 2-Step type.
  4. On the Receipts (IN301000) form, create an inventory receipt.
  5. On the Inventory Allocation Details form, make sure that the items are available in the destination warehouse.

System Preparation

Before you start processing two-step transfers, you should do the following:

  1. Launch the Acumatica ERP website with the U100 dataset preloaded, and sign in as purchasing manager Regina Wiley by using the wiley username and the 123 password.
  2. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, make sure that the SweetLife Store branch is selected.

Step 1: Ordering and Receiving Items in a Source Warehouse Before you can transfer apples from the RETAIL warehouse to the WHOLESALE warehouse, you need to process the purchasing documents. Do the following:

  1. As a preliminary action, on the Inventory Allocation Details (IN402000) form, do the following: a. In the Inventory ID box of the Summary area, select APPLES. b. In the Warehouse box, select RETAIL. c. Make a note of the initial value of the On Hand box in the Summary area. You will use it later to make sure that the quantity increases aer receiving items in the warehouse.
  2. On the Purchase Orders (PO301000) form, add a new record.
  3. In the Vendor box of the Summary area, select GLORYFRUIT.
  4. In the Description box, type Order of 50 pounds of apples from Glory Fruit Case.
  5. On the Details tab, do the following: a. On the table toolbar, click Add Row. b. In the Branch column, select RETAIL. c. In the Inventory ID column, select APPLES. d. In the Warehouse box, select RETAIL. e. In the Order Qty. column, type 50.
  6. On the form toolbar, click Remove Hold. The system saves the purchase order with the Open status.
  7. On the form toolbar, click Enter PO Receipt. The system opens the Purchase Receipts (PO302000) form with the new purchase receipt. The purchase receipt has the data copied from the linked purchase order; it also has the Balanced status.
  8. In the Location column of the Details tab, make sure that MAIN is selected.
  9. On the form toolbar, click Release. Wait for the system to complete the operation. The system creates and releases the inventory receipt. On the Other tab, you can view the reference number of the created inventory receipt in the IN Ref Nbr. box; you can also click the reference number link to view the inventory receipt on the Receipts (IN301000) form. The system changes the status of the purchase receipt to Released.
    You have processed the documents for ordering the apples from the vendor and receiving the apples to the retail warehouse.

Step 2: Reviewing the Availability of Items in the Source Warehouse To make sure that the ordered apples have become available in the retail warehouse, do the following:

  1. Open the Inventory Allocation Details (IN402000) form.
  2. In the Inventory ID box of the Summary area, select APPLES.
  3. In the Warehouse box, select RETAIL.
  4. Make sure that the value in the On Hand box in the Summary area has increased by 50.

Step 3: Creating a Two-Step Transfer Now you need to register the movement of 20 pounds of the purchased apples to the wholesale warehouse. To create a two-step transfer, do the following:

  1. On the Transfers (IN304000) form, add a new record.
  2. In the Transfer Type box of the Summary area, select 2-Step.
  3. In the Warehouse ID box, select RETAIL.
  4. In the To Warehouse ID box, select WHOLESALE.
  5. In the Description box, type Transfer of 20 pounds of apples from Retail to Wholesale.
  6. On the Details tab, do the following: a. On the table toolbar, click Add Row. b. In the Inventory ID column, select APPLES. c. In the Location box, select MAIN. d. In the Quantity column, type 20.
  7. On the form toolbar, click Release. The system releases the transfer and changes its status to Released.
  8. On the Inventory Allocation Details (IN402000) form, do the following: a. In the Inventory ID box of the Summary area, select APPLES. b. In the Warehouse box, clear the selected warehouse. c. On the Item Plans tab, make sure that a row with the In-Transit allocation type is displayed. This means that the apples have been issued from the RETAIL warehouse and have not been received in the WHOLESALE warehouse.
    So far, you have processed the documents for registering movement of 20 pounds of apples from the retail warehouse. Now you will register their receipt in the wholesale warehouse.

Step 4: Creating an Inventory Receipt Suppose that apples have been delivered to the wholesale warehouse. Before processing the document to record this receipt, you need to view the initial on-hand quantity of apples in the WHOLESALE warehouse so that you can later make sure that this quantity is increased by the transferred quantity. To review this quantity and create the receipt, do the following:

  1. On the Inventory Allocation Details (IN402000) form, do the following: a. In the Inventory ID box of the Summary area, select APPLES. b. In the Warehouse box, select WHOLESALE. c. Make a note of the initial value of the On Hand box.
  2. On the Receipts (IN301000) form, add a new record.
  3. In the Transfer Nbr. box of the Summary area, select the reference number of the two-step transfer that you created in the previous step. The system copies the line for the APPLES item from the selected transfer to the Details tab.
  4. On the Details tab, in the Location box of the only row, make sure that MAIN is selected (which is the location to which you will receive the items in the WHOLESALE warehouse).
  5. On the form toolbar, click Release. The system releases the receipt and adds the item quantity from the receipt to the on-hand quantity of the APPLES item in the WHOLESALE warehouse (which you will verify in the next step).

Step 5: Reviewing Availability of Items in the Destination Warehouse To make sure that the moved quantity of apples is now available in the wholesale warehouse, do the following:

  1. Open the Inventory Allocation Details (IN402000) form.
  2. In the Inventory ID box of the Summary area, select APPLES.
  3. In the Warehouse box, select WHOLESALE.
  4. Make sure that the value in the On Hand box has increased by 20.
  5. In the Warehouse box, clear the selected warehouse.
  6. Notice that in the table on the Item Plans tab, the row with the In-Transit allocation type is no longer displayed. This means that the transfer that included the APPLES item has been released.
    You have transferred apples from the retail warehouse to the wholesale warehouse.