Fields that relates to Replenisment System Transfer

This is what happens in the video

Setting up replenishment by transfer in Business Central lets you fill stock on one location by moving items from another, instead of purchasing or producing them locally. You configure this on the stock keeping unit card, not on the item card, because the item card has no location context. To make a transfer work, you also need a transfer route with a transit location, otherwise the planning gives you a validation error.

The transit location acts as a placeholder for the quantity and value while goods are in transport between the two locations. This keeps your inventory valuation correct from the moment items leave the first location until they arrive at the second.

Why replenishment by transfer must be set up on the stock keeping unit

The standard item table in Business Central is a general list and is not defined per location. That means you cannot add Transfer as a replenishment system directly on the item card. It simply wouldn’t make sense, because the item card has no way to say where the item should be transferred from or to.

To define Transfer as a replenishment system, you need to work on the stock keeping unit card instead. The stock keeping unit ties the item to a specific location, so you can specify the transfer details there.

Example: different replenishment systems per location

A single item can use different replenishment systems depending on the location. Take an item set up across two locations:

• On the Simple 1 location, the item is replenished by a production order. You manufacture it on that location and add it to stock through a production order using components.
• On the Warehouse 1 location, the same item is replenished by transfer. Instead of producing it, you fill it up from another location. In this case, you transfer from the Simple 1 location.

When you run the planning worksheets, the transfer setup creates transfer orders that move the item from Simple 1 to Warehouse 1.

Configuring the transfer on the replenishment tab

On the replenishment tab of the stock keeping unit card, you set the replenishment system to Transfer. From there you can:

• Adjust the lead time calculation if it isn’t already inherited from the item card.
• Define the Transfer-from Code in the transfer area, which tells planning where to pull the item from. In this example, that’s the Simple 1 location.

Once this is in place, planning knows where to transfer the item from and where it should end up.

Transfer routes and the transit location

To define a Transfer-from Code, you also need to set up a transfer route. If you point the transfer at a location that has no transfer route, for example Simple 2, you get a validation error stating there’s no transfer routing.

The transfer route uses a transit location. When you transfer from Simple 1 to another location, such as Advanced 1 or Warehouse 1, the move goes through a transfer location called Transit. This transit location is a separate location card with a checkmark indicating it is used as a transit location.

The reason for the transit location comes down to inventory valuation. When you transfer an item away from the Simple 1 location, the item still needs to be somewhere in the system. While it sits in a truck, on a ship, or wherever it is in transport, it lives on the transit location. It stays there until it arrives at the Warehouse 1 location.

The transit location works as a placeholder for both the quantity and the value while the item has left the first location but not yet arrived at the second. These are the fields you need to set up whenever you use transfer routings.

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