RE: Can you change the item cost when transferring inventory across warehouses (locations)?

If we want to transfer inventory from Warehouse A to Warehouse B – but say we want to charge Warehouse B – how can we assign cost during the inventory transfer?

For example – say Warehouse B (perhaps a subsidiary, another branch) needs some of the items that Warehouse A has. So we offer to give Warehouse B our stock, but would like to make some sort of margin on it as we are doing them a favor.


Basically this transaction, but add a cost/up-charge:

Kayla Jane Rookie Asked on May 1, 2020 in Inventory.
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1 Answers



When making the item transfer order, ensure that the ‘Use Item Cost as Transfer Cost’ checkbox is NOT checked.

Use a Transfer Price defined at the Item  so it carries to the Transfer Order (or IC Transfer Order) or override the Amount on the Transfer Order

From the Help for the Check Box ‘Use Item Cost as Transfer Cost’ :

Check this box to use the transfer price as a declared shipping value for reference only. For example, for insurance or international shipping.

    • The transfer price is not a charge for the destination location.


    • The transfer price does not affect inventory costing on transactions.


    • The transfer price defaults to show the value in the Transfer Price field of item records.


    • Partial fulfillment and receipt of transfer orders is allowed, but you cannot receive more than you have fulfilled on any date. For example, if you have fulfilled 10 widgets out of 20 on a transfer order, you cannot receive 12 widgets on that order.


Clear this box to use the transfer price shown on the transfer order as the item cost on the item receipt.
Important: If no transfer price is entered on the transfer order, no cost is recorded on the item receipt.

    • Any difference between the actual cost and the transfer price posts to a Gain/Loss account when the item is shipped.


    • The transfer price and the Gain/Loss account are defined on each item record.


    • The transfer price defaults to show the value in the Transfer Price field of item records.


If you use approval routing, this setting can be changed on a transfer order as long as the transfer order is not yet approved. Once the transfer order is approved, this setting cannot be changed.


Rookie Answered on February 15, 2021.
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