Example: Transfer Transaction

If you transfer an item that costs more at one branch/plant than at another, AAIs direct the cost variance to a GL account. For example, an item that costs 25.50 is transferred from Branch/Plant A to Branch/Plant B, where it costs 25.00. This transfer creates a credit of 25.50 to Branch/Plant A, a debit of 25.00 to Branch/Plant B, and a standard cost variance of .50. The .50 difference is recorded in a variance account.

From Branch/Plant A	To Branch/Plant B
Credit 25.50 (standard cost)	Debit 25.00 (standard cost variance of .50 recorded in variance account)

Important: The Inventory Transfers (P4113) program does not create any sales or purchase order documents. The program updates only the costing method for the branch/plant. Also, it does not provide an adequate audit trail for transferring as a result of sales or purchase orders. Use this program for inventory purposes only.

You can also enter the license plate number from which to transfer inventory. If the branch/plant in the To Branch/Plant field has license plates functionality activated, you use the processing options Warehouse Control and license plate branch/plant constants to process license plate information for the To Location value.