In-transit inventory transfers allow your company to establish a two-step process to move a product from one location to another, identifying the products being moved as “in transit” between two locations. This helps avoid committing product quantities that are not physically in the location, as well as performing more accurate costing of items as they are moved from one location to another.
The most interesting part of this functionality—especially for importers—is that it can be combined with the landed cost functionality to obtain unrivaled flexibility in its costing processes as well as greater visibility of inventory quantities. But first let’s check out the basic features of in-transit transfers in
✓ Allows to transfer products between locations and identify them using a user-defined and selectable “in transit” location. There can be multiple in transit locations, such as trucks or “via”, for example.
✓ Create efficiencies in the visibility of inventory in multi-location scenarios.
✓ The in-transit transfer process includes a basic workflow for submitting, picking, and shipping to move goods from the source location to the destination location
✓ The process of receiving and in-transit transfer uses the same window and options used to receive purchase orders. This is very efficient and potentially more compatible with products that already work to enhance the receiving of purchase orders, such as WMS systems and wireless hand-held units.
✓ The in-transit receiving process allows the user to apply landed costs, a key subject we look into in more detail below.
✓ This functionality is part of the supply chain series and it is available for any
Using in-transit transfers, Dynamics GP allows tremendous flexibility in the process of receiving and costing your imported goods while also providing more visibility. An importer can, for example, receive products shipped FOB into an in-transit location—say, “Ship”—without applying landed costs, or only applying those landed costs that have been incurred in up to that point such as inland freight. From there on, Dynamics shows that these goods are on their way because this in-transit location is in fact just another inventory site in the system.
When the goods reach local customs, the importer may transfer the goods from the “Ship” to their main warehouse, passing through the “Customs” in-transit site. At this point, the user may apply typical landed costs such duties, insurance, brokerage, etc. The same logic can be applied if transferring a product from one warehouse to another implies adding significant costs for transport and insurance, such as maybe transferring from one city to another. The company may opt to add these landed costs upon receiving of the in-transit transfer.
In-transit transfers make Dynamics GP a yet more powerful product that is more adaptable to the way your business handles its inventory, especially in companies with complex location and costing scenarios.