Understanding Transfer Orders for Brazil

You enter a transfer order to ship inventory between branch/plants within the company, maintain an accurate on-hand inventory amount, and provide tax information for notas fiscais. The transfer order program:

• Creates a sales order for the shipping location that represents the supplier.

• Creates a purchase order for the receiving location that represents the customer.

• Processes the inventory amounts on the transfer order as a formal purchase and sale of goods.

• Creates documents, such as pick slips or invoices, that are necessary to complete the transfer.

You enter transfer orders to input information about inventory that you move from one location to the other. Transfer orders are used in two situations:

• One location needs inventory from another location within the same branch plant.

• One branch plant needs inventory from another branch plant within the same company.

  Note: When you generate a transfer order, the system automatically creates a purchase order with its corresponding Brazilian tag file information. The system creates this Brazilian tag file information with default values.