Inventory Managment Episode 2 Transfer Order & Stock Order

everyone welcome back uh today we are going to discuss about

transfer orders second session like a few other topic about

transfer order in the last session we have created a site warehouse and one

transfer order we have created and let's start with uh other things so it

means a partial shipment those type of things

so let me take new

Warehouse two two Warehouse three

oh sorry I mean India localization

so I'll use transfer order which is Indian localization so next topic I am

going to discuss about Stockton as well for Indian localization this topic I'll

discuss today only so before that uh

continuation with the last session we have discussed about transfer order now

few other features on the transfer order we are going to discuss about it so two uh

quantity I am giving here

say 2 quantity and shift now is I'm giving one quantity

let's save it so I'm

ordering two quantity but ship now I can ship

in number of quantity whatever we all know say for

example if there is some transport uh load issue that particular transport

vehicle don't have space enough space to send this and we have sending only one

quantity in the next segment we are going to send another

another quantity then in such cases we can use this treatment otherwise we

don't have that two quantity availability currently and one quantity

is available we are sending one quantity now and maybe next quantity will

whenever we received will send that quantity through another shipment

so again red shift generate picking list so I am taking shift now quantity here

you can ship is shipping is done pick English registration

sorry uh so first is a big English trees done big

English registration with that big English registration where also comment

and pick the products I am given this uh speak English that speak English will

register in the system how much product picked

by the warehouse in this case in this case we have

picked only one quantity instead of two quantities

so if you want to change the status of your transfer order go to

function start picking root you can mention it that means we were picking

root has been started status

so once everything I once everything is okay you can click update all so that uh

speak English registration will be completed stages handling status will be

completed transfer order shipment reference okay this is the reference member

then ship transferado so ship now uh

so pick the quantity I am selecting now pick quantity is one so one which came

and let's ship

see here shift remaining one ship quantity one okay

so you you in this case we have ordered two quantity but uh

shipment is the answer won't be one quantity uh Warehouse three required to

quantity but from Warehouse 2 we have

uh transfer order is created for two quantity but we have transferred one

quantity to that Warehouse 3 as of now then later on

Warehouse 2 uh came with a reply that they don't want other

quantity please cancel that quantity so before that shipment is done and on

the warehouse three side we when they want to receive the transfer order go to

receipts so shipment you can select which

Shipment has been received where those three is receiving this

product shipment is in Warehouse 2 and Warehouse 3 received this product

so first one quantity everything is done

okay one quantity uh all okay and we

have one more quantity uh that were host three told that

we need to cancel that extra quantity

so at that time delivery reminder click on delivery reminder ship remaining

cancel quantity so done okay

this is the one serious scenario that I want to

show show to everyone and let's create one whole scenario

where reservation will be used so I am selecting Warehouse 2 and

Warehouse so it is not a sub actually it is coming

stock transfer and cost price because uh I defaulted this

types in the parameter level so I'll show that in the I'll show that when I

am discussing about stock transfer

so I'm taking transfer order now and

item number and so for example

two quantity here reservation is there

reservation if you click reservation enable that means if you go to header level also

there will be reservation uh Auto reservation if we want uh you can

do this so here

so reservation we are enabling so if you don't want reservation disable this one

because this feature will be helpful for see for example in the inventory in the

uh inventory availability we have a stock

right so for example 10 5 quantity availability is there now we are

ordering through transfer order to quantity then there will be three quantity right so

if someone ordered three quantity it is okay but if someone out of four or five

quantity uh if it picks from these two quantity also which we want say they

ordered five five quantity then all the quantity from the uh inventory will go

to that particular order right so to avoid that we can resolve this quantity

to this transfer order that means whenever you reserve these two quantities for this transfer order then

there will be three quantity in the three quantity in the inventory that

only can pick by the uh some other purpose so it is reservation

this is about reservation

let's start doing the other process once it is saved generate picking list

so

maybe I'll use this one

on generate English I'm clicking it so maybe result quantity if you select

what happened oh before that if you want to reserve

this uh by automatically by the system in the header level it is not enabled so

if you want to enable this uh reservation by automatically by the

system not manually so in that case

you need to go to the parameters

go to parameters we have a reservation

automatic function in the inventory management parameters if you go to

here

transfer order Reserve items automatically

this option

okay once this option is enabled then system automatically reserves the order

whenever we created the transfer order so let's go on as this

so it won't work for a already created ones because we just now enable this

feature so let's take new

and Warehouse 2 is the from warehouse and Warehouse 3 is the

destination Warehouse so somewhere so we are discussing about transfer order

select the transfer

see automatically reservation is enabled okay this is one thing

if you go to uh inventory transactions

you can see two quantity ordered and two is already reserved so that means it

will direct from the inventory because it's not supposed to pick by another

order or some some other orders right so that's why

so then start this

okay I'm selecting all

so then pick English registration from here I want to uh do the partial

picking so you can select here one

okay here you can select one and update all

so this is completed so now same scenario where where those three came to

us and told that don't provide another quantity

we we don't want that another quantity so that needs to be canceled by us right

so oh sorry let's do the shipment as well

save it

so shift quantities on now

um doing receipt as well from the uh

destination errors

okay once this is done let's do that canceling the remaining quantity

delivery reminder so if I do

I'll get an error message that uh sorry

out output orders already generated for this order

so actually whenever you resolve the items output order has been generated

for the quantity right so that is the reason its system is not allowing to uh

cancel the remaining quantity so in that case we need to do we need to

cancel the output order first once it is canceled from the output

order then you can able to you can able to

cancel your pending quantity

so in the output or the quantity and I think

or to order quantity

this is the one I guess go to functions and

click ok

so this is the error message we are getting

transfer order 25

okay let's go and see whether we canceled

the correct one or not now do that so done

so transfer order output order has been canceled I am now

remaining quantity also transferred now it is received status

and transfer order C status is received so nothing to do

okay this is another scenario

and we have split option as well we can

where we can split the uh speak English registration place you can

split our quantity and we can cancel it from there so let's go with that scenario as well

so that

so it's depends on your requirement or to you but these are very standard

functionalities for the transfer order

to quantity

I'm going to under I don't want to reserve it

so disabling this and what I am going to do is that

I am doing the generate picking list

of all quantity

so first is ship now quantity second one is at the time of speak English

registration what we are doing we are reducing the quantity that like less

quantity and we are doing the shipment and

received for the partial quantity then later on when we try to cancel the

delivery yeah delivery reminder it given an error message so

at that point of time we need to cancel the output orders once the output order

is canceled you can you can

cancel the delivery reminder you can cancel the remaining quantity so

here this is one more options Fleet we can do

so um this is saved for example only one quantity uh is going to ship now

update selected so it is picked

if you click update all here it will complete all the lines

but I don't want to complete it for all the lines so unpick it

sorry activated status only one is completed status picked

I'll go back and I'll do the same steps like shipping

and recipe

so this is shipment print the quantity

we have one shift weight

get done so now uh Warehouse three don't want the remaining

quantity so that we need to cancel it so

I'll go to picking list registration let's go with this delivery reminder

first so that so start with delivery reminder cancel it I'll get the same

error message what you need to do go to pick English registration

select this one

cancel pick English line clicking line

canceled and it is canceled status here

go to Google

receive status okay this is another scenario where we

can do the partial delivery partial shipment

so this is about transfer order I have completed

basic setups and transferred things so till now what we discussed is that

creation of site Warehouse what is site warehouse and location how to create and

location manually creation and as well as automatically aggregation then later on

what we do what we did is that we discussed about the inventory postings where the minor forms

will be mapped for all the inventory transactions

then we came not with the transfer order process we have transfer order and

transfer journal what is transfer Journal later on we discussed about

uh Dimension links how to activate it once the dimension lick is completed

we created the transfer order basic transferred what is uh stock

transfer and transfer order we discussed

foreign partial shipment and how to cancel the

remaining quantity through delivery reminder when the output orders are

generated how to cancel it and how to cancel the remaining quantity through

delivery reminder these are the things we discussed till you know

generally transfer order process will be like this so first of all

first of all it is creation of transfer order then

generate picking list pick English registration shipment and from the

destination Warehouse site it is received okay

that is the process so okay

then we'll go with another topic

stock transfer I have prepared some documentation

now if you contact number as well

here okay

let's start with the stock transfer uh normally stock transfer is nothing

but it is uh exactly not exactly same as

transfer order there is few few differences that we are going to discuss

in this topic in this session first of all transfer order means

of moving the inventory from one variables to another Warehouse that is the transfer order

right but in India if the shipment and

receiving branches or between two states like once the

shipping warehouses in Andhra position receiving warehouses in

Karnataka and they have different registration tax registration members in

that case calculated and posted GST will be

calculated and posted to the trans posted for the transfer order

okay so now in the normal scenario normal transfer order we don't have this

uh adding the tax details so that's why we'll use

stock transfer in India localization and an interim Transit account which

account will be used for the offset of these posting says interim Transit

amount for what portions for this GST postings

interim account is uh act as a

offset account for these postings and once it is fully received then it

will be nullified I'll show you uh when we are posting any

entries and output how the entries will post

okay

this is the this is what I just told you how to map the default

price price type and transfer right so when I click here

for creating the new transfer order so by default my transfer type is dot

transfer and cost price this is what I am getting currently so this is because I have selected my

default default setups in the parameter level

let's go there

so in the transfer order see for example if I take

if in case I had taken the transfer order as default

whenever I try to create the new transfer order

type as transfer this is another thing

and one other thing is that for ght calculation

what we need to do HSN code error SSC code we need to

assign if it is a item will assign the HSN code in the product master and if it

is a service service SSC code will be added here in the releasing products

okay this is a basic setup for GST calculation purpose

that will be there in the religion products that I can show you here as

well so for example product information management

go to release products oh this is

okay go to religion products

if I go here

see here HSN code SSE code service accounting code

harmonizer system of nomenclature adjacent

code is for items and SSC code is for service

the next configuration ah as we discussed in the previous slide

interim Transit where it is [Music]

sorry interim Transit account is used for the offset account for this GST postings

right so that's why where we need to map that interim Transit account

where we need to map in the transferred postings

in the postings transfer order interim Transit we need to map so that

is what I mentioned here must configure the interest interim to asset account

which is done on the following Pages Inventory management postings transfer

order Transit interim Transit and in the tax setup as well we need to select the

interim transit for trucks stock transfer so that system will pick these

subconscious while booking our postings

and you must set up the main accounts for these things as well this we already did

uh let's go and check the interim Transit account

whether it is mapped or not so where we need to go

Inventory management

postings right

it's postings transfer order interim Transit

nothing is mapped here let's map some account

I'll take

okay I'll take which is already there

foreign

[Music]

what is the another setup for GST calculation go to tax module

tag setup

um our setup is vght is our company so this is

the setup I did

so this is the tax thing so if I go to CG steel level

see I have mentioned the steps as well to accept tax setup setup and setup page

interim transit for stock transfer

foreign

first

see this is there

this is here

we GST

I'm not sure whether all the setups are there for GST for this legal entity or

not

that short transfer only is not coming let's check

foreign

foreign

[Music]

[Music]

please

so in the nmf this step is that mapping the

interim Transit account for transfer order in the tag setup

so this is a place let's see

so here this is the account this is not showing for our legal entity that I'll

check and updating next session so once these setups are done whether

account is there here ght level known there may be it is available in those

subheadings level that means c g h t is GST and igst level

that's it's available so once this is done configure or

transfer pricing so configure transfer pricing means like

uh if you want to map the transfer pricing for any product

you can do that as well so if you go to

product information management

products

in our case will take some

okay I'll show you any one product uh so main is course will have transfer

price you can Define here her plans for the Europe

this particular product okay

once that is done a dimension link is enabled that we already discussed in our

previous sessions and we discussed about the those things

and transfer order a movement occurs between the warehouses that belongs to

different sites normally transfer order will be

um movement of uh it is the movement between warehouses that belongs to

different sites the condition is applies from transit and to Transit

to Warehouse from transit to Warehouse from warehouse and Transit then

Warehouse as we discussed it first of all it will be in Source Warehouse then

it will move to Transit Vehicles then it's finally reaches to our destination

Warehouse if the farm from warehouse and Transit Warehouse belongs to same side

from and uh Transit variables

belongs to the same side then transfer order shipment will not post to GL

adly if the transit warehouse and two Warehouse that means destination

Warehouse belongs to same side there will not be a transfer order received

will not post to jail that means shipment will not be posted

to GL at the time uh Source warehouse and Transit Warehouse belongs to same

site that is the conditions here if you want to if you must put the

transfer stock transfer to GL and track inventory in transit Warehouse we

recommended that to use Dimension link and create separate sites for the transit Warehouse so for Transit

variables we will create the separate uh of sites so that we can

Dimension link will be enabled so that we can track through the Geo

create and post a stock transfer order this is a scenario so in this case what

we are doing is that we are creating we are going to create the transfer order

and create new transfer order from warehouse and to Warehouse we selected

foreign so this is about let's go and start

creating the order

Inventory management transfer order

new

maybe I'll use 11 or 20 here okay so in these

say first it is transfer order now currently if we use uh for example from

warehouse and Evo this Transit Warehouse is belongs to same side it won't opposed

to GL right that is one thing and is if transiter destination Warehouse is

same it won't post to GL receipt receipt will not post to jio

so if I go here and click the source Warehouse and for this

Transit Warehouse is 31. 31 side it belongs to side 3.

and that means uh from warehouse and

Transit Warehouse will have to two different sides so that that means it

will post to GL shipment will post to GL okay

so these already we posted right so I'm not showing thing and if it is transfer

stock transfer we'll get a pricing type as

well pricing type if you want to default this one as a private then you need to

go to parameters as well So currently I'm taking uh

cost price at the line

I'll use this product charger adapter

and here in the transfer quantity this is okay fine in price type field select

the price type for transfer order line for following options we have two options cost price and uh

transfer price cost price is nothing but or cost price or the on hand price of

the item is used for the transfer order line the transfer price that is set up for

the item is used for transfer order line so the normally these will be used two

types will be used if you want cost price you will select the cost right if you want to use the transfer price from

the master where we checked right in the main is because we have transfer price

that cost uh which one you want to use that is the

word and that is what they are saying here in the unit price field entered the cost price or transfer price for one

unit of for one unit of the item so if it is uh

cost price it will take from the cost to price uh what is the cost for that

product running cost like that so if we use transfer price currently it is zero

because we didn't mapped any uh cost price there sorry transfer well there if

you want to check how this triple line is coming cost price is coming uh then

go to product

release products

is the one

um

so but Chase

where it is

this is transfer price if you use this option for example I'll give you some amount here

costume cost objects here see here

triple line is the price site one is

Warehouse 11 belongs to site one right so triple 9 is the price

so let's go and check the transfer pricing

so let's edit it

foreign

quantity so that's why it's not allowing us

to each does not exist so quantity and then we given quantity and here each we

given so it's not allowing us that means conversion is not there I'm not going

with conversion under I just go and edit that

transfer price in the product level

so here

let's change the unit to each

a save it

go to inventory

now edit it

now see it's basically if you select transfer

price it will pick from the transfer price if you take the cost price cost price of the

product it will make okay that is what they are saying here

the unit price on the stock transfer order line is recalculated based on the

inventory Dimensions that are specified in the line

until the first shipment is pushed the line shipment of the stock transfer to

the line that has been unit price of zero can be controlled through prevent

shipment with zero okay that is zero value we can prevent it we will go with

thing now select text information and save it

here you can see the text information based on your GST setup this is

Warehouse one and GST latest is the tax information available and GST details

everything is there so at the line level of invent transfer

order from location tab you can find the tax information that is linked to the

shipment from warehouse and hit the line level on the invent transfer order for

to location tab to location and from location it's simple loading only from

warehouse and to Warehouse see here this one and this one

okay what is the tax documents used things mapped for these locations

okay

at the line level this is fine go to tax document okay

you can see here text document here

what is the tax calculation

so this is the tax calculation and triple nine is the price and eighteen percent is GST and it's calculated ijst

or normally we have interested GST and interest rate GST I

interested is between two states and uh interest rate is between like interest

rate is within the state if you post if you do the transaction in

the interest rate you'll get cght and

sorry sgst and if it is in between two states igst and cgst will be calculated

okay So currently it is uh ight calculation

okay once that's done go to ship

you can do this generate picking list as well

I'll go with trans ship transfer order

all everything done

select the export lines check box and then in the update

select all then I select the setup tags document

and review the settings of the make any adjustments that you are required to close the tab

so if you want to do any image adjustments for the tags

do here if nothing is there

you can click ok

thank you

so once shipping is done same way you can receive that transfer order as well

based on your shipment

okay once shipment is done it is received status

okay go to inventory transactions

so this is the thing this is normal in everything First Source warehouse It's

detected that quantity and it's when to Transit various and from transit

variables to destination Warehouse okay Ledger

as it between two different sides of from werewolves and Transit

Warehouse belongs to two different sites so it is boosting to the GL

o so this is the entry it's got posted as I told you in the presentation that

tax igst recoverable account is posted because it is recoverable

so let's show you one more thing

purchase is Right purchases it will be recoverable

so this is payable

okay this is favorable

foreign

[Music] two transactions it belongs to IST

recovery sorry ight recoverable because these are

receiving things and this is receiving the item will compare first line and

lost line so if I go here like gerunda Financial transactions it

is igst variable credit and for that our setup on this

interim Transit ijst credit because the foods are selling right they

are sending to other variables they are sending at the time of sales it is payable account after GST and later on

interim inventory received debit inventory receipt debit inventory

inter inventory enter you need payable credit inventory issue credit inventory

uh interview receivable debit for first is inventory

enter unit debit and inventory issue credit and

inventory received inventory inter unit payable credit

so then GST ight credit and interim

Transit debit so if I go with the second line transaction same will be there

because those are

Transit account right so same this one this one

okay if suppose we'll go with fourth line of

the line it is will it will be ijst recordable

this is a recovering right this is purchasing if it is purchasing Warehouse it is igst

recoverable tax so the GST recoverable account and same entries for inventory

issue that amount inventory enter unit receivable

inventory received and inventory interview payable received

inventory always when we receiving the inventory always it will be leaving that

means inventory receipt is debate for that outside account is inter inventory enter unit payable account next one more

other two lines sorry

so uh inventory if whenever you are getting inventory it will be inventory

received and for that offset account is inventory enter unit payable same way uh

whenever inventory is issuing that will be credit for that offset account is

inventory enter unit receivable account for GST recoverable account of set of

countries in dream Transit those are the things let's show you few

scenarios so for example uh standard transfer to postings so for example cost

price is hundred when the shipment is posted 100 rupees is the price from Warehouse is site one

two Transit warehouses side two two warehouses side three that means here

from warehouse and Transit Warehouse are two different side

it belongs to two different sites GL postings will be there uh at the time of shipment at the time of receipt as well

uh Transit Warehouse is different and belongs to different site and destination warehouses belongs to

different set there will be entries so at the time of transfer order

shipment posting it will be uh these are the entries will be posted uh inventory

issues site site one from site one inventory is going out so inventory

issue will be credit and in inventory inter unit receivable

will be debit and then in inventory interview

payable credit uh inventor received hundred

sorry site same way of the recipient uh postings

you can check it out site to one side three from side two it will go and side

3 will be recipient so it will be uh inventory issue from site 2 that will

be created for that offset account is inventory enter unit receivable and inventory sorry inventory

received two inventory enter unit tape that will be site

three see this is one scenario and next

scenario is that site one site one see

site one side one from warehouse and Transit Warehouse site one site one then there will be no GL transactions but for

recipient thing received posting there will be transactions because Transit

Warehouse belongs to side one and destination Warehouse belongs to set three

[Music] receivable will be debit inter inventory

issue will be credit that is from site one

and who is receiving that inventory inventory received debate from site 3

and interview inventory enter unit payable will be credit

then one more scenario inventory cost price at this moment is when the

shipment is hundred unit price that is specified on the line is 120 the price

can be inventory cost price at that time at that moment when the line was created

it's updated or it can be transfer price of the item

so taxable amount of 120 GST 10 from Warehouse to

Warehouse Transit Warehouse in this case

at the time of shipment it will be from site one it is going to site to

right inventory issue will be site one inventory receipt will be side to

further for those transaction inventory enter unit um payable and receivable with the

offset accounts and GST payable here so at the time of

shipment right at the time of shipment means inventory payable account uh

credit for that interim account debit

shipment is transfer under this one receipt so inventory uh GST recoverable

will come recordable means receivable Mommy

I hope I hope you all guys understood the stock

transfer for India localization I think it's helps you

if anyone have [Music] maybe different topics that you want to

discuss you can reach out to me through my novel number if you want if anyone want a finance

training session Finance training d365

then you can contact this number so that I can this or Inventory management and

all I'm just started with these topics but finance stock exits

a very it will be very clearly explained in the so course will be in both English

as well as Telugu language you can reach out to me if anyone wants

I want to learn this d365 Finance

okay thank you all bye when this codes uh transfer order thing

only in the next recession maybe under delivery or delivery those type of stuff

it's very important uh transfer order and transfers

so thank you have a good day bye