A transfer order in Microsoft Dynamics 365 Business Central is a document used to move stock between two warehouse or storage locations within the same organisation. Unlike a purchase order, no external supplier is involved and no financial liability is created. Transfer orders are essential for multi-site distribution businesses that hold stock across several locations and need to balance inventory without losing traceability. Business Central tracks the stock through an in-transit location between shipment and receipt, so quantities are never unaccounted for during the movement.
How transfer orders work in Business Central
A transfer order specifies the source location, the destination location, the items and quantities to move, and optionally the transit route and expected transit time. When the source warehouse ships the goods, Business Central posts a shipment that reduces stock at the source and places it in the in-transit location. When the destination warehouse receives and confirms the goods, a receipt posting moves the stock from in-transit into the destination location's item ledger. Lot and serial number tracking can be carried through the transfer if traceability requirements demand it.
Transfer orders in practice
- A national distributor uses transfer orders in Business Central to replenish regional depots from a central warehouse weekly, with the planning worksheet suggesting transfer quantities based on each depot's reorder points.
- A wholesale business with two warehouses uses transfer orders to balance overstocked lines at one site against shortfalls at the other, eliminating the need for new supplier orders in most cases.
- A logistics manager tracks a consignment of temperature-sensitive goods moving between bonded warehouse and a picking facility using transfer orders with lot tracking, maintaining a full chain of custody record.
- A buying team reviews in-transit stock in Business Central's inventory reports before placing new supplier orders, avoiding over-ordering stock that is already on its way from another site.
How Advantage configures transfer orders in Business Central
Advantage sets up location hierarchies, in-transit locations and transfer routes in Business Central for multi-site distribution businesses. We configure the planning worksheet to suggest inter-location transfers alongside supplier replenishment orders, so buyers see a complete picture of how to meet demand from the most cost-effective source.
Frequently Asked Questions
Common questions about transfer orders and multi-location stock management in Business Central.
