Inventory Transfers
Overview
Inventory transfers are used to move products between different inventory stores. They help manage and track the movement of stock across multiple locations while maintaining accurate inventory records.
Inventory transfers are essential for businesses that operate multiple inventory locations, allowing them to efficiently redistribute stock based on demand, optimize storage space, or consolidate inventory for specific business needs. Each transfer maintains a complete audit trail of the movement, ensuring accountability and accurate inventory valuation.
Fields of the Inventory Transfer Form Explained
- From Store: The store from which the products are being transferred. This is a required field. The products list will show the products that are available in the selected store.
- To Store: The store to which the products are being transferred. This is a required field.
- Transfer Date: The date when the transfer is initiated or requested. This is a required field. It will default to the current date. It is the date on which the generated accounting transactions will be recorded.
- Description: A brief description of the transfer for reference purposes. It will show up on the printed document of the transfer. This is an optional field.
- Products: A list of products that are being transferred. Atleast one product is required to be selected. Each product has the following fields:
- Product: The product that is being transferred. This is a required field.
- Quantity: The quantity of the product that is being transferred. This is a required field.
- Quantity in Source Store: The quantity of the product that is available in the source store. The transferred quantity will be deducted from this quantity. The transferred quantity cannot exceed the quantity in the source store.
- Quantity in Target Store: The quantity of the product that is available in the target store. The transferred quantity will be added to this quantity.
- Unit Cost: The unit cost of the product that is being transferred. This is automatically calculated based on the average cost of the product currently in the source store.
- Total Transferred Value: The total cost of the product that is being transferred. This is automatically calculated based on the unit cost and quantity.
- Transaction Note: This is a text field to add any notes or description about the transfer. This is optional and purely for reference purposes. It does not show up on the printed transfer, only shows up on the general ledger and account statements of the related transactions.
Inventory Transfer Other Properties
- Reference: Automatically generated by Mezan based on your organization's counters settings. It is only generated after the transfer is confirmed for the first time. It is a unique identifier for the transfer in the organization.
- Confirmation Status: This is used to track the status of the transfer. It can be "Draft" or "Confirmed". This is a common approach across all transactions in Mezan. Confirmed state can influence if it shows up in reports by default or not, as reports can be filtered based on the confirmation status.
- Organization Member: This is the organization team member who created the transfer. It is automatically populated by the system based on the user who created the transfer. It is useful in reporting, permissions, and audit purposes.
- Source Store Account: The account that will be credited for the transferred products. This is automatically populated by the system based on the source store's account settings.
- Target Store Account: The account that will be debited for the transferred products. This is automatically populated by the system based on the target store's account settings.
Transactions Generated by Inventory Transfers
An inventory transfer will create two transactions:
- From Store Account: A debit transaction on the source store account.
- To Store Account: A credit transaction on the target store account.
The transactions will have the same date as the transfer. The transactions will be linked to the transfer record.