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D365 for Finance and Operations
Working with Transfer Orders
In this blog, we will discuss the process of transferring products from one warehouse to another, using the standard Transfer Order functionality. Along the process, we will go through the product picking and registration for shipment and use the arrival overview to receive. We will also check how we can utilize the Add Products screen to conveniently add different variants of the same product.
Scenario
The database we are going to use for this scenario is the demo database on D365 for Finance and Operations with the USRT company. In this company, we have a few products relevant to the apparel industry, that we would use. These products are pre-configured with different color and size variants. We will transfer these products from the New York warehouse to the Seattle warehouse.
A flow diagram outlining the process is shown below:
Note that the Physical Picking step is grayed out in the above flow, as it is a manual step that takes place outside of the system.
Prerequisites
The following are the prerequisites to initiate the transfer ordering process:
Product master
Navigation: Product information management > Products > Released products
We are going to use a product master record that is released in USRT and has multiple released variants, as shown below:
Item model group
Navigation: Inventory management > Setup > Inventory > Item model groups
It is particularly essential to note the setup we are using on the item model group. The product requires to be associated with a model group which has an inventory policy of Stocked product and the physical update of Registration requirements and Picking requirements should be enabled.
The physical update parameters in the inventory item model group setup as shown above will enable us to record transactions for pick list creation and registration requirements.
Warehouse
Navigation: Inventory management > Setup > Inventory breakdown > Warehouses
We are using the warehouses of NewYork and Seattle, which are configured as shown below:
The issuing and receiving locations for these warehouses are predefined, so that we would not have to specify any location during the transferring process. [Assuming that the storage dimensions for the products require site-warehouse-location combination to be specified for transactions]
Create Transfer Order
Navigation: Inventory management > Outbound orders > Transfer order
Transfer orders are found both in the inbound and outbound menus of the Inventory management module. Click on any of the links to open a list of all transfer orders. On the list page, click the New button to create a new transfer order. The transfer order page opens up where you need to provide the “From warehouse” and the “To warehouse” on the header.
Add Products
Now that the header is created, let us try creating the lines of the order using the Add products button highlighted above. The Add products button helps us in conveniently creating multiple lines of products into transaction lines, without having to insert new product records one after the other into the transaction lines.
When you click the add button, you open up a page as shown below, having three windows. The first window displays the category hierarchy of products and assists you in filtering the product list by the hierarchy nodes, which is displayed in the second window. This makes it easy for you to select the products you would like to add to the order. The third window is the main one which shows you all products that are added to the order.
For this transfer order, we would select the Children’s Apparel node from the product category hierarchy and select the product 0141 from the list. We would like to add multiple variants (of colors and sizes) of this product to the transfer order. For adding multiple variants, click the Add variants button.
Add variants
On clicking the add variants button, the variant matrix form opens up, where all colors and all sizes of the product are selected by default. You can directly enter quantities of each variant that you would like to add to the transfer order.
Click OK to proceed. Now you are back on the Add products screen, where all the variants you had selected have been added with the quantities you had entered for each.
Now you can add more product variants in addition to what you have added already. Click OK on this screen to return to the transfer order. You will notice that all the products that you had added are automatically created as lines on the transfer order. A view of the transfer order with the created lines is shown below:
Note that the current status of the transfer order is Created.
Generate Picking List
Once the transfer order is created, you can directly ship the transfer order. But we are going to create a picking list first to allow our warehouse pickers to pick the products and then register the picked quantities into the system to ship the transfer order. So, while on the transfer order, we would click on the Generate picking list option on the Ship tab of the page.
On clicking the Generate picking list button, the posting picking list form opens for the transfer order. You have an optional checkbox to print the picking list while you post.
Click OK to post and print the picking list. This picking list document is ideally to be handed over to the picker at the warehouse to physically pick all the products to be transferred as per the order.
Pick List Registration
Once picking is completed, the user can register the picking for the order back into the system. In order to register, you would have to open the transfer order and click on the Picking list registration option on the Ship tab of the transfer order. Note that once the picking list has been generated, the generate picking list option will be disabled and the picking list registration option will get enabled on the transfer order form.
On the picking list registration form that opens up, you will have to click on the Update all button to finish the registration of the outbound transfer order.
On clicking the Update all button, the status of the picking list registration lines are changed from Activated to Completed. Now you can close the form, go back to the transfer order and ship the order to its destination.
Ship Transfer Order
After registering the picking list, click on the Ship transfer order option on the Ship tab of the transfer order screen. The shipment screen opens as shown below:
Click OK to post the shipment. You can optionally tick the printing of the transfer order shipment checkbox to print a delivery note before you post the shipment. Once the shipment is posted, you will notice that the status on the transfer order has changed to Shipped. The inventory of the transferred products at this time are reduced from the sending warehouse and posted to the In-Transit warehouse.
Arrival overview
So far, we had presumed that we were shipping the transfer order from New York. Now let us assume that we are at the receiving warehouse at Seattle. How would we know what transfers are we supposed to receive? The answer is that same arrival overview screen, that I had earlier discussed in my Inventory Arrival blog.
On the arrival overview screen, we can view all orders arriving at Seattle warehouse.
Here, we will have to select our transfer order and click the Start arrival button to create a new inventory arrival journal. On clicking the button, the system will automatically create an inventory item arrival journal and will display the journal number as an info-log message. Now we can click on the Journals button and select the Show arrivals from receipts menu to check the item arrival journal.
Update and Post Item Arrival journal
The inventory item arrival journal will contain the list of the transfer order lines of the products with their shipped quantities. You may update the quantities as received and enter a location code, if you need to put the products into specific locations within the warehouse. And finally, you would have to post the arrival journal to register receiving of the products into inventory.
Click the Post button on the item arrival journal to post.
Post Shipment Receipt
Posting the item arrival journal register the quantities into the stock of the receiving warehouse. After registration, you can either go back to the transfer order to receive it or you can directly receive the order from the item arrival journal. In the item arrival journal, you have the option of receive under functions menu to directly receive the transfer order.
Now that the transfer order has been completely received, the order number will not show any more on the arrival overview screen. You can check back the transfer order and you would notice that the status of the order has now changed to Received.
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