Transfers and shipments
Inventory leaves a location two ways: a transfer (moves to another internal location and stays in inventory) or a shipment (leaves inventory entirely — to a customer, to a vendor as a return, or to scrap). Each is its own flow because the financial posting, the documentation, and the audit posture differ.
TL;DR — Transfers live in Inventory → Transfers; they move on-hand from one location to another with optional in-transit tracking. Shipments live in Inventory → Shipments; they decrement on-hand permanently with an outbound document (BOL, packing slip, RMA). Both reuse the same scan + pick + pack flows on the floor.
Internal transfers
A transfer is a controlled move between two workspace locations. On-hand decrements at the source and increments at the destination (or sits in in-transit during transport).
Open Inventory → Transfers → New transfer
The new-transfer form opens.
Pick source + destination
Both must be workspace locations. The source must have sufficient on-hand; the destination must accept the item type.
Add lines
For each item: SKU + quantity. Lot- or serial-tracked items require the specific lot / serial.
Pick the transfer mode
One-step — instantaneous transfer (same building, walk-over). Two-step (in-transit) — source ships, in-transit holds the quantity, destination receives. Use two-step when the move crosses sites or takes more than a shift.
Generate the transfer document
A packing slip + a transfer ID. The slip travels with the physical goods.
Pick + pack at source
Floor staff scan items into the transfer container. On-hand decrements at source; in-transit on-hand increments (two-step).
Receive at destination
Destination scans the transfer ID + verifies the contents. In-transit decrements; destination on-hand increments. Discrepancies become an in-transit variance investigation.
Outbound shipments
A shipment removes inventory from the workspace's books — to a customer, back to a vendor (return), or to scrap.
| Field | What it does | Accepted values / default |
|---|---|---|
| Customer shipment | Fulfils a sales order or service request. | Decrements on-hand; posts cost-of-goods-sold against the matching revenue. |
| Return to vendor (RTV) | Send a previously received item back to the supplier. | Decrements on-hand; reverses the receipt's cost layer; AP coordinates the credit memo. |
| Scrap / write-off | Inventory is destroyed or otherwise removed without value recovery. | Decrements on-hand; posts the cost to inventory write-off; requires approval above thresholds. |
| Donation / sample | Removed for non-revenue purposes. | Decrements on-hand; posts the cost to the donation or marketing-sample expense account. |
Run a customer shipment
Open Inventory → Shipments → New shipment
The new-shipment form opens.
Pick the customer + ship-to
From the customer record. Ship-to may differ from bill-to.
Add lines
For each item: SKU + quantity + lot/serial where tracked. Lines may come from a sales order or be added manually.
Pick the carrier + service
Workspace-configured. Carrier integration generates the label + tracking number; the manual path lets you enter them from a separate process.
Generate ship documents
Packing slip, commercial invoice (for cross-border), BOL (for LTL/TL). Documents pre-fill from catalog + customer record.
Pick + pack
Floor staff scan items into the shipment container; the system suggests pick locations (typically the pick-face bin). Lot / serial enforced where tracked.
Ship the shipment
Confirm tender to carrier. On-hand decrements; COGS posts. Tracking number is on the customer-facing record.
Returns from customers (RMA)
When a customer returns goods to the workspace, the flow is essentially a receipt against an RMA rather than a PO.
Authorize the return
Customer service issues an RMA with the expected items + the return reason.
Receive the return
Inventory → Floor → Receive → "Return" pulls the RMA. Scan the items in. Returns route to a separate returns quarantine bin for inspection.
Disposition
Inspect, then move to: restock (back to sellable on-hand, possibly at a discount), refurbish (rework + restock), scrap (write off), or return-to-vendor (where the workspace itself returns the item upstream).
Refund / credit the customer
Driven by the customer-side flow; not part of the Inventory module per se. The inventory side closes when the RMA's expected quantity is fully received + dispositioned.
Every field, explained
| Field | What it does | Accepted values / default |
|---|---|---|
| Transfer mode | One-step (instant) or two-step (in-transit). | Two-step required for inter-site moves; in-transit on-hand is held until destination receives. |
| Carrier + service | How the shipment moves. | Configured per workspace; integrated carriers auto-generate labels. |
| Lot / serial | Required for tracked items. | Enforced at pick; cannot ship a different lot than what's allocated. |
| Ship-from + ship-to | Origin + destination addresses. | Drives carrier rate + customs documentation. |
| Incoterms (international) | Who bears risk + customs + duties. | DDP / DAP / FOB / CIF etc. Required for cross-border. |
| Customs value | Declared value for customs. | From cost or fair market value per local rule. |
| Write-off reason | Why the inventory was scrapped or otherwise removed. | Drives finance classification + drives operational follow-up. |
Common gotchas
- "In-transit on-hand keeps growing." Two-step transfers that never get received are the cause. Pull the in-transit report monthly; either confirm receipt or open a loss investigation.
- "Customer return came in but the RMA expired." The workspace's RMA policy controls (typically 30-60 days from ship). Coordinate with customer service before receiving — the receipt blocks if no active RMA.
- "Scrap volumes are climbing." Scrap is a quality signal, not a process. Pull the scrap-by-cause report and route to ops / engineering. Persistent scrap on the same SKU is a product or supplier defect, not an inventory issue.
- "Lot mixed during pick." Pull the picked carton, sort back to original lots, repick. Mixed lots in customer shipments are recalls waiting to happen (you can't recall a specific lot you can't trace).
- "International shipment delayed in customs." The customs document is usually the culprit — mismatched HS code, understated value, missing certificate of origin. Pull the shipment record, fix the document, re-tender.
Troubleshooting
| Error code | What it means | Fix |
|---|---|---|
TRANSFER_INSUFFICIENT_ONHAND | Source location doesn't have enough. | Reduce the transfer quantity or split into multiple transfers from multiple sources. |
TRANSFER_IN_TRANSIT_OVERDUE | Two-step transfer hasn't been received within the threshold. | Investigate the in-transit; receive at destination or open a loss. |
SHIPMENT_LOT_MISMATCH | Picked lot differs from the allocated lot. | Repick from the allocated lot or update the allocation with a documented reason. |
SHIPMENT_CUSTOMS_DOC_INCOMPLETE | Cross-border shipment missing required fields. | Complete the customs section (HS, value, origin, incoterms) before tender. |
RTV_NO_OPEN_RMA | Return arrived without an active RMA. | Customer service issues the RMA, or use the unauthorized-return path with a documented reason. |
How this is recorded
Every transfer + every shipment writes to the inventory ledger with the source / destination / quantity / lot / serial / attribution + the financial posting. The shipment is part of the workspace's external-facing record — the BOL is the customer-visible artifact; the cost posting is part of the financial close. Retention follows the longest of carrier-record requirements, customs-record requirements (typically 5 years post-export), and the audit-log retention FINANCE floor.
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