Microsoft Dynamics 365 Business Central – Basic Inventory Transfers (DEMO)

Dynamics 365 Business Central – Basic Inventory Transfers (DEMO)

I want to show you two easy ways to transfer inventory in Dynamics 365 Business Central.

Methods Discussed:

  • Transfer Orders: In this method, you can specify the source and destination locations for your inventory items. You have the flexibility to choose between a direct transfer or utilizing the in-transit functionality.
  • Item Reclassification Journals: Another efficient method is using item reclassification journals. This process allows you to effortlessly create a journal for item reclassification. You specify the item, source location, destination location, and quantity, making the transfer straightforward.

Transfer Order Details:

  • On the transfer order screen, you can specify the location from which the inventory items are originating and the location to which they are destined.
  • The option of a direct transfer enables immediate inventory movement, while the in-transit functionality provides a more controlled approach.
  • For a controlled transfer, you can select the transit code.
  • When creating a transfer order, you specify the item and its quantity, with predefined location codes.
  • The transfer process involves two fundamental steps: shipping and receiving.

Shipping Process:

  • To ship items, navigate to “posting,” then “post,” and select “ship.”
  • This action records the quantity shipped.

Receiving Process:

  • To complete the transfer, navigate to “posting,” then “post,” and select “receive.”
  • The quantity to receive is often defaulted based on the original quantity, but adjustments can be made as needed.


  • Dynamics 365 Business Central provides useful reporting to track inbound transfers. This reporting is invaluable for keeping your warehouse updated on incoming inventory.

Item Reclassification Journal:

  • The item reclassification journal offers a more direct method of transferring inventory between locations.
  • You simply specify the item, its source location, the new destination location, and the quantity to be transferred.
  • Once these details are entered, you can post the journal to complete the transfer.

Ledger Entries:

  • Ledger entries reflect the two types of transfers. For transfer orders, you can observe the process of shipping out, moving to the in-transit location, and then receiving it into the new inventory location.
  • In contrast, the item reclassification journal simplifies the transfer by moving the item directly from one location to another.

These methods provide you with efficient tools to manage inventory transfers effectively within Dynamics 365 Business Central, streamlining the movement of goods between different locations.

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