Transfer Orders

A Transfer Order is the transfer of items from one location to another. This feature is available in NetSuite when (and only if) the Multi-Location Inventory feature is enabled (Set-up > Enable Features> Item & Inventory > Multi-Location Inventory).

In NetSuite, a Transfer Order can have four different statuses: Pending Approval, Pending Fulfillment, Pending Receipt, and Received. Let's go through what each of these means in the Standard Workflow:

1. Pending Approval
The Transfer Order will maintain this status until either it is manually set to Pending Fulfillment, or is approved via the Approve Transfer Orders window, which can be accessed through Transactions > Inventory > Approve Transfer Orders.

2. Pending Fulfillment
In this stage, the item is committed from the source location, which is viewable in the Quantity Committed column of Location under Item > Inventory, and the Quantity on Order is incremented on the Transfer Location. At this point you can now Fulfill the Transfer Order, which will create a standard item fulfillment which is ready to be packed and shipped.

3. Pending Receipt
Now, once the Transfer Order is in the Pending Receipt status, the Quantity on Hand at the From Location will be decremented, but the Quantity on Order remains on the Transfer Location. At this point you can now receive the Transfer Order.

4. Received
Once the Transfer Order has been received, the Quantity on Order will be decremented proportionate to the Quantity on Hand that has now been incremented.


A company has custom built items which they only use certain quantities of items to build. Taking this into account, the company would like the extra quantities to be moved to a Scrap Location. The Solution?
  • Create a Custom Column Field - Quantity to Scrap
  • Create a Transfer Order to commit from inventory for each item with a quantity to scrap (when the Sales Order is created)
  • When the Sales Order is Billed:
    • Transform Transfer Order into Item Fulfillment
    • Transform Transfer Order into Item Receipt
Quantities to scrap should thus be moved from Location to Scrap Location with the correct inventory impact.

1 comment:

  1. This is pretty interesting. Looks like they can fulfill an order pretty well eh?