Item Transfer in Dynamics NAV

When working with inventory, transferring items from one site to another is a very common business requirements. Such requirement can be processed in Dynamics NAV in two different ways, each of them fulfills specific business needs.

Inventory Transfer Order

Transfer order is one easy way for transferring items from one site to another, although, it needs to be done from one location to another through an in-transit site. Below are brief of the advantages and disadvantages of this process:

In Transit Transfer Visualization

Advantages:

• Segregation of duties, this process guarantees that the two warehouse keepers involved are working on the same process from start to end. One ships the items from their own warehouse to the in-transit site, and the other warehouse keeper receives the items from the in-transit into the destination site.
• In case any items are damaged while being transferred, it will not be received and can be reported easily since it will remain in the in-transit location
• If any item charges are associated with such inventory transfer, it can be easily assigned to the items and allocated accordingly.

Disadvantages:

• It might be perceived as long process from a system perspective, especially when the transfer is physically between two sites which are managed by the same warehouse keeper
• It requires the use of In-Transit location, which is sometimes not physically involved

Transfer Order can be found on ( Departments/Purchasing/Order Processing/Transfer Orders) :

Transfer Order

When posting the transfer order, you will be asked either to Ship or Receive the items. You definitely can not receive items if they are shipped yet.

Transfer Order – General Ledger Journal

The journal entry which is posted to the general ledger includes primarily two accounts, the inventory adjustment account and the inventory account which are configured on the inventory posting setup

When posting the “Ship” on the transfer order, the following journal entry is generated

You can navigate to the posted transfer and receipts on the transfer order as illustrated in the screen shots below:

Item Reclassification Journal

One of the other options which can be used to transfer items from one location to another without too much complication is the item reclassification journal which simply takes quantities out of one location and adds it to a new location.

It’s worth to mention that this journal is not designed to transfer items from one location to another, this journal can be used to re class items for the following other purposes:

• Bin to New Bin
• Dimension to New Dimension
• Location to New Dimension

As for the financial journals, both inventory adjustment and inventory account are included in the posting journal.

Best Regards,
Mahmoud M. AlSaadi