This is what happens in the video
In Microsoft Dynamics 365 Business Central, you create transfer orders to move inventory between locations. You can do this manually or let the planning worksheet suggest and create them for you. To use the planning worksheet for transfers, you must set up stock keeping units, because the replenishment system “Transfer” is not available on the item card. It only appears when you plan per location, per item, and per variant through a stock keeping unit.
When you create a transfer order manually, you specify the from-location, the to-location, the item number, and the quantity. You then post the shipment and the receipt to move the stock. If you have not set up a transfer route for the location combination, Business Central gives you an error when you try to create the order.
If you want a planned approach, set the replenishment system on the stock keeping unit to Transfer and define the location that should replenish your destination location. Run the planning worksheet, and Business Central calculates demand and suggests a transfer order with the right quantity. You accept the line, carry out the action message, and the transfer order is created automatically.
Creating a transfer order manually in Business Central
The simplest scenario looks like this. You have a sales order for a customer, and you want to sell a quantity of city bikes from location SYMBOL 2. You have no inventory on SYMBOL 2, but all your stock sits on SYMBOL 1. One way to get the inventory where you need it is to create a manual transfer order.
To do this, go into Transfer Orders and press New. You then enter:
- The location code you want to transfer from
- The location code you want to transfer to
- The item number
- The quantity
If you have not defined a transfer route for that combination of locations, you get an error at this point. With the route in place, you can post the transfer order. You post the shipment first and the receipt afterwards, which moves the item from one location to the other.
When to use a transfer order instead of an inventory journal
A transfer order is not the only way to move stock between locations. You could also use an inventory journal or an item reclassification journal to do the same thing. The advantage of the transfer order is that you get a document. With that document you can print picking documents and other paperwork for your warehouse, which makes it the better choice when the physical movement needs to be handled and tracked properly.
Setting up stock keeping units for transfer planning
If you want the planning worksheet to create transfer orders for you, you need stock keeping units. From a normal item card, you cannot select Transfer as a replenishment system. You only get the other three options. The stock keeping unit, which plans per location, per item, and per variant, is where Transfer becomes available.
For item 1000, you create a stock keeping unit on location SYMBOL 2. This defines how you want to replenish that location for that item. On the replenishment settings, you set the replenishment system to Transfer and specify the transfer-from code, which is the location that will fill up your destination by default. If you are transferring from SYMBOL 1 to SYMBOL 2, you set SYMBOL 1 as the transfer-from location.
You also need to set up the correct planning parameters on the stock keeping unit, such as reordering policy and quantities, the same way you would for any other planning setup.
Running the planning worksheet to create transfer orders
With the stock keeping unit in place, you go to the planning worksheet and calculate the plan. To keep the result manageable, you can filter on item number 1000 and location SYMBOL 2 so you only see the relevant lines.
Business Central works out that you need the item on SYMBOL 2 to cover the demand from the sales order. It suggests a new order with the calculated quantity, and the type is Transfer. You check the line and carry out the action message. As long as the “Make Transfer Orders” option is selected, this creates the transfer order for you.
If you have many lines, you can combine multiple suggestions for the same location combination onto a single transfer order. Once you carry out the action, the planning line is removed and the transfer order is created and ready in your transfer orders list.
Q&A
Q&A
Why can’t I select Transfer as a replenishment system on the item card?
The Transfer replenishment system is only available on stock keeping units, not on the item card. The item card only offers the other three replenishment systems. Because a transfer involves moving stock between specific locations, you need a stock keeping unit, which plans per location, per item, and per variant.
What do I need to set up before the planning worksheet can create transfer orders?
Create a stock keeping unit on the destination location for the item, set the replenishment system to Transfer, define the transfer-from location that should replenish the destination, and configure the correct planning parameters. After that, you can calculate the plan and carry out the action message to generate the transfer order.
Why do I get an error when creating a transfer order?
If you have not defined a transfer route for the combination of from-location and to-location, Business Central gives you an error when you try to create the transfer order. Set up the transfer route for that location combination to resolve it.
What is the difference between using a transfer order and an inventory journal to move stock?
Both move inventory between locations. The transfer order gives you a document, which lets you print picking documents and other warehouse paperwork. An inventory journal or item reclassification journal moves the stock without producing that document.
Can I combine several planning suggestions onto one transfer order?
Yes. When you carry out the action message, you can combine lines that share the same location combination onto a single transfer order, which is useful when you have many lines in the planning worksheet.