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Stock Transfers

A stock transfer moves inventory from one location to another — feeding a forward depot from the main warehouse, or shifting material between factories. Stock leaves the source and arrives at the destination, and while it is on the road its value is parked in stock-in-transit so nothing falls off the books mid-journey. This page runs a transfer from Vatva WH-1 to Odhav Depot through its full lifecycle.

Creating a stock transfer between locations

The transfer lifecycle​

A transfer is a two-ended document that moves through three states:

StateWhat has happenedStock effect
DraftSource, destination and lines entered; not yet dispatchedNone — availability is only checked
In TransitGoods dispatched from the sourceTransfer Out at source; value → stock-in-transit
CompleteGoods received and confirmed at the destinationTransfer In at destination; stock-in-transit cleared

Worked example — 8 MT WH-1 → Odhav​

Odhav Depot is running low on HDPE Granules — Grade A ahead of a drum run. We move 8 MT of batch HD-2405-A across town.

1. Draft​

  1. Go to Inventory → Stock Transfers → ＋ New Transfer.
  2. Set Source = Vatva WH-1 and Destination = Odhav Depot.
  3. Add the line HDPE Granules — Grade A, batch HD-2405-A, quantity 8 MT. Raya checks there are at least 8 MT free-to-promise at Vatva and warns if not.
  4. Save as Draft.

2. Dispatch → In Transit​

Confirm and dispatch the transfer. Raya writes a Transfer Out at the source and moves the value into stock-in-transit:

Transfer Out   HDPE Granules — Grade A   −8 MT   @ Vatva WH-1 (batch HD-2405-A)

Dr  Stock-in-Transit ............ 7,60,000   (8 MT × ₹95,000)
Cr      Inventory — Vatva WH-1 ....... 7,60,000

Vatva's on-hand drops by 8 MT immediately; Odhav has not gone up yet. The batch identity travels with the goods.

3. Receive → Complete​

When the truck arrives, open the transfer and Receive. Raya writes the Transfer In at the destination and clears stock-in-transit:

Transfer In    HDPE Granules — Grade A   +8 MT   @ Odhav Depot (batch HD-2405-A)

Dr  Inventory — Odhav Depot ...... 7,60,000
Cr      Stock-in-Transit ............. 7,60,000

The transfer is now Complete: Vatva −8 MT, Odhav +8 MT, stock-in-transit back to zero, batch preserved end to end.

:::note Stock-in-transit Stock-in-transit holds the value of goods that have left the source but not yet been received, so total inventory value is conserved across the two locations at every moment — even overnight while the truck is on the highway. :::

:::caution Receive the actual quantity If only 7.8 MT arrive (spillage in transit), receive 7.8 MT. The 0.2 MT shortfall stays in stock-in-transit and should be cleared with a Damage adjustment so it isn't silently lost. :::

Same-GSTIN vs cross-branch​

How a transfer is treated depends on whether the two locations share a GST registration — see Locations for the branch model.

ScenarioExampleWhat Raya does
Same GSTINVatva WH-1 → Odhav Depot (both 24…Z5)Internal move — auto-posts stock-in-transit journals as above. No tax.
Different GSTINVatva WH-1 (Gujarat) → Bhiwandi Branch (27…Z3, Maharashtra)A deemed supply between distinct persons — a plain stock transfer is blocked; raise the proper branch-transfer document with IGST and an e-way bill instead.

:::caution Don't force a cross-GSTIN transfer Moving stock between two different GSTINs is a taxable inter-branch supply, not a simple transfer. Raya stops the plain transfer so you issue the correct tax document — using an adjustment or a mislabelled transfer to shortcut it will leave your GST returns wrong. :::