Inventory Control and Transfer

Use this path to maintain credible on-hand stock and move it between facilities. Physical counting and movement must be compared with the system record; posting an adjustment is the controlled outcome of investigation, not a substitute for it.

Where this workflow fits

This workflow is useful for multi-site distributors, retailers, manufacturers, and warehouse operators that need reliable stock records across facilities. Counts, receipts, and transfer requirements trigger this work. Current stock records inform purchasing, production, and fulfillment.

Featured capabilities

• Inventory & Products: Check quantity, condition, and stock disposition.
• Receiving & Bin Locations: Record actual receipt and accepted stock location.
• Shipping & Fulfillment: Pick, ship, or transfer the approved quantity.
• FIFO Bucket COGS Adjustment: Investigate an approved cost-bucket correction separately from quantity.

People and preparation

Inventory and warehouse owners need the facility, part and unit, count scope, Bin Location rules, transfer destination, and approval policy for stock and accounting corrections.

Process areas and stages

1. Count and research

   Owner: Warehouse and inventory control. Input: Count plan and physical stock.

   Work and decision: Select the facility, products, and inventory activity to review. Use the physical inventory worksheet for cycle counts or full counts. Review the inventory profile and adjustment history before changing stock. Count the selected items, identify the correct facility and location, and compare with the worksheet and transaction history. Look for pending receipts, picks, transfers, or unit errors before concluding there is a loss.

   Evidence and handoff: Count and researched variance pass to the adjustment approver.

2. Approve an adjustment

   Owner: Inventory approver and finance. Input: Investigated difference.

   Work and decision: Investigate count differences before posting. Confirm the part, facility, quantity, and reason code. Use an inventory adjustment only for an approved correction, because posting changes on-hand quantity and the inventory GL accounts under the firm's costing method. Choose the correct part, quantity, facility, and reason. Post only an authorized correction because the change affects inventory quantity and accounting; preserve the explanation.

   Evidence and handoff: Approved adjustment and GL effect establish the corrected balance.

3. Receive and locate stock

   Owner: Receiving and warehouse. Input: Inbound goods and receiving document.

   Work and decision: Receive inbound stock through Logistics → Receiving. When Warehouse Management is enabled, assign received stock to a Bin Location before making it available for warehouse picking. Physically inspect and record accepted goods through Logistics Receiving. Where Warehouse Management applies, assign a Bin Location and confirm the goods are ready for picking.

   Evidence and handoff: Receipt and location evidence pass to inventory users.

4. Ship and receive a transfer

   Owner: Sending and receiving facilities. Input: Approved transfer requirement.

   Work and decision: Move stock between facilities with a Transfer Shipment, then complete the matching Transfer Receipt at the receiving facility. Confirm the quantities, lot or serial details, and any shortage or damage at each handoff. Pack and dispatch stock with a Transfer Shipment. The destination counts and checks the actual arrival before posting the matching Transfer Receipt; investigate a shortage or damage across the two handoffs.

   Evidence and handoff: Paired shipment and receipt show what left and what arrived.

5. Review the outcome

   Owner: Inventory control and finance. Input: Posted count, receipt, adjustment, or transfer.

   Work and decision: Review the resulting on-hand quantity, facility location, and adjustment or transfer history. If finance finds a difference between the inventory amount on individual parts and the FIFO cost bucket used to value it, retain the exception for investigation. Use FIFO Bucket COGS Adjustment only for an approved cost correction. Compare on-hand and facility balances with physical evidence and history. A FIFO cost-bucket variance is a separate finance investigation; apply its specialized cost correction only after approval.

   Evidence and handoff: Current quantity, Bin Location, and exception owner inform replenishment and fulfillment.

Variations and exceptions

A transfer in transit is not stock physically received at the destination. If a count variance concerns cost rather than quantity, keep the two investigations distinct.

Completion and review

The count, adjustment, receipt, or transfer can be traced to the affected part and facility. On-hand quantity and Bin Location are current, and material variances have a reason and an owner.

Related workflows

• Demand to Replenishment: review and approve supply decisions
• Sales Order Fulfillment: allocate, pick, pack, and ship