Inventory transfers: shipped does not mean received

Inventory control must connect a physical event with the correct document and system entry. Closing a transfer solely because it was shipped can hide an outstanding quantity, while a premature stock adjustment can erase the explanation. This model concerns reconciliation of transfer data between locations, not physical transport services or determining ownership of goods.

1. Establish the client's transfer model

Microsoft Business Central documentation describes transfers using an in-transit location, with shipment and receipt posted separately. Partial posting capabilities depend on the selected transfer mode.

Before analysing the data, establish which variant applies. Agree the meaning of statuses and the source report. Do not copy instructions from another ERP or location configuration without checking. Microsoft provides a feature example; this does not claim that BackOffice Outsourcing uses the product.

2. Match lines rather than document headers alone

In the proposed control worksheet, use the transfer number, line, item ID, source and destination locations, and unit of measure. Add a lot or serial number where required. Similar product descriptions are not a sufficient matching key.

Check that units are comparable. Ten packages and ten individual items need not represent the same quantity. Conversions should come from the client's approved master data. Do not invent a conversion factor from the appearance of a document or an operator's memory.

3. Reconcile partial receipts cumulatively

Editorial example: one line has a recorded shipment of 100 units and confirmed receipt entries totalling 60. The remaining 40 need investigation. This difference does not prove a loss; it may reflect transport in progress, an unposted receipt or a genuine discrepancy.

Separate the quantity received in the latest event from cumulative receipts. A further confirmation for 20 increases the total from 60 to 80 if it represents a new event rather than a resubmitted copy. Retain each evidence identifier so it cannot be counted twice.

4. Compare data at the same point in time

Record the report date and time and the locations covered. A morning shipment report and an end-of-day receipt report may describe different states. Specify whether the comparison uses event date, entry date or posting date under the client's report definition.

Microsoft Dynamics 365 Supply Chain Management can separate registration from cost-update processing for transfer receipts. Check the stage required by the process. A warehouse registration message does not replace confirmation that all agreed system operations completed successfully.

5. Investigate before adjusting stock

Assign the outstanding quantity a cause, investigation owner and next step: awaiting delivery, missing document, unit error, unprocessed entry or confirmed discrepancy. Link the supporting evidence. Do not create a receipt merely to clear the report.

An adjustment requires the client's appropriate procedure and permission. Retain the previous value, change justification and operation result. A closed ticket or message saying it was corrected does not establish that the data is right. Recheck the relevant line and required documents.

6. Hand over an explained list of outstanding quantities

The review should show transfer, line, quantity shipped, cumulative receipts, outstanding quantity, age and reason for waiting. Agree closure criteria and treatment of approved exceptions. Do not combine different units into one apparently precise total.

BackOffice Outsourcing supports warehouse data checks within Inventory and Cost Accounting, using the client's systems and procedures. Describe your transfer report and where differences arise to agree the task scope. For the broader reconciliation context, see the month-end close guide.

Sources and scope of this guide

• Microsoft: Transfer items between locations
• Microsoft: Configure the transfer order receiving process

Microsoft documentation was checked on 25 October 2026. Feature descriptions apply to the named products and their configuration. The worksheet, numerical example and controls are editorial proposals to agree with the client. This guide does not determine valuation rules, accounting recognition dates or transport liability.