Glossary
What is a stock transfer?
What a stock transfer between warehouses does, why it is not a sale, and what it does to quantities and value.
Updated
In short
A stock transfer moves goods from one warehouse to another within the same business. In SimpleERP a posted transfer moves the quantity at average cost, so total stock value and the books do not change.
A stock transfer moves goods from one warehouse, shop or site to another within the same business. Quantity falls in the source and rises in the destination by the same amount, at the same cost, so total stock and its value stay unchanged. It is not a sale; within one tax registration no tax is charged, and a transfer note travels with the goods.
Stock transfer: a worked example
Before the busy season, Harbour Steel moves 20 Steel rack 4 shelf from the Main warehouse to the Eastside store.
| Main warehouse | Eastside store | Total | Total value | |
|---|---|---|---|---|
| Before | 52 | 18 | 70 | $22,190 |
| Transfer of 20 at $317 | −20 | +20 | 0 | $6,340 moved |
| After | 32 | 38 | 70 | $22,190 |
FAQ
Questions, answered
Is tax charged on a stock transfer?
Not between warehouses under one tax registration. A transfer to a separately registered branch or company, or across a border, can be taxable and need a tax invoice; SimpleERP's stock transfer does not raise that invoice, so bill the other entity instead.
Do I need transport documents for a stock transfer?
Often a delivery or transfer note is enough, but some countries require transport or customs documents for goods on the road, depending on value and route. SimpleERP prints the transfer note but does not generate government transport documents.
Does a transfer change the cost of the goods?
No. In SimpleERP the average cost is per product across the business, so goods move at the same cost they already carry. No journal is posted because the value stays in the same inventory account.
Can I transfer more than the source warehouse has?
Not by default. The transfer is refused with the product and warehouse named. If negative stock is allowed in settings it posts, and the source shows a negative quantity until stock comes in.
Related
Keep reading
Stock adjustment
A document that corrects recorded stock to the shelf after a count, damage or loss, with a reason and a ledger entry.
Read moreStock transfers
How to record a stock transfer between warehouses, shops and branches: when to transfer versus adjust, the cost, the tax position and the in-transit gap.
Read moreInventory
Stock on hand by warehouse at weighted average cost, with a movement ledger and a low-stock list.
Read more
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