How to Transfer Stock Between Locations
Out-challan from source, receipt at destination.
Purpose
Move stock from one location to another — warehouse to counter, or branch to branch — using the two-step Stock Transfer flow: an out-challan from the source and a receipt at the destination. The two-step model ensures in-transit stock is visible and that the receiving location confirms what actually arrived.
Before you begin
- Both source and destination locations exist in the location master.
- Items in the transfer exist at the source with enough stock.
- Decision on whether transit time is significant — if yes, the in-transit ledger setting must be enabled.
- Vehicle / e-way bill details ready if the transfer is inter-state above the threshold.
Steps
- Start → Inventory & Stock → Stock Transfer → Transfer Out (Challan).
- Pick the source location (must be your current location or you have multi-location rights).
- Pick the destination location.
- Add items and quantities. Stock at source reduces immediately; if in-transit is enabled, it moves to the In-Transit bucket rather than disappearing from value reports.
- Save & print the challan. For inter-state transfers above threshold, the e-way bill number is captured here.
- When the stock arrives at the destination, the receiving operator opens Stock Transfer → Transfer In (Receipt).
- They pick the source challan number; lines pre-fill. They enter actual received quantities (which may differ if there is damage / shortage in transit).
- Save. Stock at destination increases; in-transit clears; any short-receipt is auto-routed to a shortage variance ledger.
What success looks like
- Source stock reduces; destination stock increases by the received quantity.
- A challan number links the out and in vouchers — visible in Stock Transfer Register.
- In-transit balance is zero for completed transfers; non-zero only for in-flight ones.
- Any short-receipt is captured as a variance for investigation.
Troubleshooting
- "Negative stock at source" warning.
- Source does not have enough. Reduce the quantity, transfer from a different source, or wait for incoming stock.
- Destination cannot find the challan.
- Day Closure has not happened at the source, or the operator is searching the wrong date range. Widen the date filter.
- Received quantity differs — what to do?
- Enter the actual received qty and save. The shortage routes to a variance ledger; the source location investigates from the challan.
Tips
- Always do the two-step flow — do not skip the receipt — even for short transfers, or in-transit reports lie.
- Enable in-transit valuation if transfers cross financial boundaries (e.g. branch P&Ls).
- Warning. Inter-state transfers above the e-way bill threshold without a captured e-way bill number are a compliance risk.