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Page History: Adjust Transfers Examples and Process

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Page Revision: 10/22/2018 12:37 PM


Adjust Transfers Functionality

When a transfer order is shipped by the shipping location, the on hands shipped on that transfer remain in the shipping location's inventory until the transfer is received. Once the transfer is received by the receiving location who requested the transfer, the on hands are decreased at the shipping location by the quantities SHIPPED (quantities on the shipment) and increased at the receiving location by the quantities RECEIVED (quantities on the receipt).

When a transfer is received by the receiving location and the item on hand quantity is adjusted / changed from the quantity shipped by the shipping location, the system creates an item discrepancy (at this point, the transfer is complete as the items have been shipped and received). The items in discrepancy are listed on the Adjust Transfers screen.

Only discrepancies from shipments dated within the last 12 months will be listed. Any discrepancies older than one year will no longer be listed regardless of whether they have been adjusted or not.

The item in discrepancy related document shown on the Adjust Transfers screen is always the shipment and the discrepancy quantity is always related to the shipment. Any adjustments made affect the shipping location, never the receiving location.

Example Screen Display

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The list of items in discrepancy that are shown on the Adjust Transfers screen are based on the following:

Example 1:

  • Quantity Shipped = 2
  • Quantity Received = 1
  • The shipment number will list the item discrepancy as a positive quantity of 1.
  • If Affects Inventory is selected, the shipping location item on hand will be increased by 1.

Example 2:

  • Quantity Shipped = 3
  • Quantity Received = 4
  • The shipment number will list the item discrepancy as a negative quantity of -1.
  • If Affects Inventory is selected, the shipping location item on hand will be decreased by 1.

Adjust transfer discrepancies as follows

First determine the reason for the discrepancy between the quantity shipped and the quantity received.



The shipment location has not adjusted the difference through the Adjust Local Inventory function. Any adjustments will be made through the Adjust Transfers function:



Example 1

  • Quantity Shipped = 2 (shipping location on hand decreased by 2 upon completion of receipt)
  • Quantity Received = 1 (receiving location on hand increased by 1 upon completion of receipt)
  • Shipment quantity is incorrect.
  • Receipt quantity is correct.
  • Item never left the shipping location and remains in the shipping location physical on hand (not on the database on hand.)

How to Proceed:
- Select Affect Inventory, select the corresponding line item and select Inventory Asset for the Write Off Account.
- The shipping location item on hand will be increased by 1.

Example 2

  • Quantity Shipped = 2 (shipping location on hand decreased by 2 upon completion of receipt)
  • Quantity Received = 1 (receiving location on hand increased by 1 upon completion of receipt)
  • Shipment quantity is correct.
  • Receipt quantity is correct.
  • Item physically left the shipping location and is no longer in the shipping location's physical on hand but got lost in transit while being delivered.

How to Proceed:
- Do Not select Affect Inventory, select the corresponding line item and select Inventory Adjustment for the Write Off Account.
- There will be no changes to the shipping location's item on hand.

Example 3

  • Quantity Shipped = 2 (shipping location on hand decreased by 2 upon completion of receipt)
  • Quantity Received = 1 (receiving location on hand increased by 1 upon completion of receipt)
  • Shipment quantity is correct.
  • Receipt quantity is incorrect.
  • Item physically left the shipping location and is no longer in the shipping location's physical on hand.

How to Proceed:
- Do Not select Affect Inventory, select corresponding line item and select Transfers in Transit for the Write Off Account.
- There will be no changes to the shipping location's item on hand.

Very Important: The receiving location will have to make an inventory adjustment through the Adjust Local Inventory function to add the item on hand to their inventory location and select Transfers in Transit for the adjustment account.



The Shipment location has adjusted the difference through Adjust Local Inventory function

Very Important: The only time the shipping location will have adjusted the on hand through the Adjust Local Inventory function is if the SHIPMENT quantity was incorrect.



When the quantity shipped is incorrect, and the receipt quantity is correct

  • Quantity Shipped = 2 (shipping location on hand decreased by 2 upon completion of receipt)
  • Quantity Received = 1 (receiving location on hand increased by 1 upon completion of receipt)
  • Shipment quantity is incorrect.
  • Receipt quantity is correct.
  • Shipping location has adjusted the on hand through the Adjust Local Inventory function.

How to Proceed:
- Do Not select Affect Inventory, select corresponding line item and select Transfers in Transit for the Write Off Account.
- There will be no changes to the shipping location's item on hand because they were previously adjusted.
- Nothing to be done on the receiving location as quantity received was correct.

Shipment location has adjusted the difference through the Physical Inventory Count Sheet functionality

How to Proceed:
- Do Not select Affect Inventory, select the corresponding line items and select Transfers in Transit for the Write Off Account.
- For the General Ledger to be correct a journal entry adjusting the Transfers in Transit account balance has to be done (assuming that the count sheet was posted to the Inventory Adjustment account which is the standard).



General notes related to the examples

  • For the General Ledger to be correct, the account that should be selected when the discrepancy is adjusted through the Adjust Local Inventory function is ALWAYS Transfers in Transit, regardless if the shipping location is making the adjustment or the receiving location is making the adjustment.

  • For customers that use Location specific GL accounts, the GL account selected ALWAYS should be the GL account for the corresponding location.
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