1. SCM (Supply Chain Management)
  2. Inventory Management
  3. Basic Inventory Management
  4. Transferring Inventory
  5. Receiving Transfer Orders

Receiving Transfer Orders

When items being transferred between locations are received by a warehouse, the transfer order must be marked as received. Receiving a transfer order does the following:

For example, the warehouse manager at Location A shipped 50 widgets to you at Location B. While the items are in transit between locations, the 50 widgets continue to be counted with the inventory for Location A. When you receive the package of 50 widgets from your shipper, you mark the transfer order as received. Then, the 50 widgets are added to your inventory in Location B and removed from the inventory count at Location A.

You cannot receive more than the quantity on the transfer order.

Note:

When you enter a receipt for a transfer order, the receipt cannot be dated prior to the shipment date of the order.

When you receive an intercompany transfer order, credits and debits are recorded the general ledger in an intercompany clearing account for each subsidiary. These are standard accounts and cannot be deleted. For more information, see Intercompany Clearing Account.

For details on steps to receive orders, read Receiving Orders.

Receiving Transfer Orders and Transfer Cost

If the Use Item Cost as Transfer Cost preference is enabled for an order that is partially fulfilled, you must match the received quantity to a fulfillment when you receive lines on a transfer order. This ensures accuracy when tracking item costing.

To partially receive a transfer order, click Receive on the transfer order.

Note:

The item receipt quantity must match the item fulfillment quantity.

Alternatively, you can receive items by going to Transactions > Purchases > Receive Order and clicking the Receive link next to the order.

For details on steps to receive orders, read Receiving Orders.

Transfer Orders and Landed Cost

If you use the Landed Cost feature, you should be aware of the way NetSuite handles transfer order receipts when you use the Cost method for landed cost allocation. If the inventory costing is recalculated on an item receipt for some line items, the landed cost of the items is not updated.

For example, an order includes two lines that have a cost of $40 for line one and $60 for line two. The landed cost is $200, so $80 applies to line one and $120 applies to line two. Later, if the cost on the transfer order fulfillment gets updated by inventory costing calculations, that cost is propagated to the item receipt. If inventory costing updates the cost of the items on the receipt to be $50 for line one and $50 for line two (instead of $40 and $60), the landed cost on the receipt is NOT updated to $100 for each line. It remains at $80 and $120.

Departments and Classes

The receipt form defaults to show the department and class values entered on the transfer order for the destination, unless the department or class is not available at the destination subsidiary. If a department or class is required on a transaction, then you must enter an available department or class on the receipt.

Item Value and Currency Calculations

Upon receiving the item, the value of the transferred item used on the item receipt is based on the transfer price on the transfer order.

If you use the Multiple Currencies feature, the item receipt uses an exchange rate which is the currency conversion between the source and destination locations. These can be set in the Currency field on the receipt.

For intercompany transfers between subsidiaries that use different currencies, the transfer price at the destination is equal to the transfer price at the source multiplied by the currency exchange rate at the time of product receipt.

Related Topics

General Notices