Inventory between warehouses: transfers, reservations and transit
Owning goods does not mean they are available to sell. Transfers need dispatch and receipt; reservations change availability even while boxes remain in the warehouse.
How do on-hand stock and available stock differ?
Sales asks what can be promised, the warehouse asks what is physically present, and purchasing asks what is on its way. These are different quantities. A single total-stock report can include goods committed to another customer, blocked for review or still traveling.
| Quantity | Meaning in this model | Decision it supports |
|---|---|---|
| Physical stock | Goods present at the location, including reserved and blocked units | What the warehouse operator can count |
| Reserved | Goods committed to a document with a release rule | What another salesperson must not promise |
| Blocked | Present goods that cannot be offered, for example under review or damaged | What needs approval before returning to sale |
| Available | Physical stock minus reserved and blocked units, without overlapping those groups | What can be assigned to a new order at that location |
| In transit | Goods dispatched between locations but not yet received | What must be tracked and reconciled without treating it as destination availability |
Software labels vary. Shopify distinguishes inventory states to separate available goods from committed, unavailable and incoming stock. Agree how your states map to the selected system; this guide keeps reserved and blocked groups separate to avoid subtracting one piece twice.
Why does a transfer need both dispatch and receipt?
Dispatch confirms goods left the origin; receipt confirms what actually arrived. Odoo’s inter-warehouse replenishment documentation shows the two operations and a transit location between them. A shipped status does not establish that the destination received the full quantity.
Define who dispatches, who receives, which document connects them and how differences are resolved. If 8 of 12 pieces arrive, the other 4 do not magically appear at the destination or vanish from the record. They remain pending in transit until receipt, return or another authorized resolution is documented.
Worked example: 120 pieces, a partial receipt and a return
| Step | Physical A | Available A | Physical B | Transit | Exercise total |
|---|---|---|---|---|---|
| T00: start | 100 | 85 | 20 | 0 | 120 |
| T01: dispatch 12 available pieces from A | 88 | 73 | 20 | 12 | 120 |
| T02: B receives 8 of the 12 (REC-001) | 88 | 73 | 28 | 4 | 120 |
| T03: repeat REC-001 without another receipt | 88 | 73 | 28 | 4 | 120 |
| T04: the 4 unreceived pieces physically return to A | 92 | 77 | 28 | 0 | 120 |
| T05: attempt to reserve 80 from A | 92 | 77 | 28 | 0 | 120; attempt rejected |
Initial availability at A is 100 - 10 - 5 = 85. After the return it is 92 - 10 - 5 = 77. A new request for 80 does not fit within those 77 pieces: reject it or change it through an explicit decision without using another order’s goods. Record the return only when those 4 pieces come back; marking the transfer canceled is not enough.
Physical stock plus transit remains 120 because this exercise includes no sale, consumption, waste or new purchase. Those movements do change totals in your operation and must explain the difference. A purchase order not yet received is not added to destination availability either.
Download the warehouse transfer CSV and test instructions. The file adds T06–T09: cancellation does not erase a receipt; releasing 5 reserved units changes availability to 82; blocking another 10 leaves 72; attempting to sell 73 must be rejected under the exercise rule. Use them with your vendor to verify the sequence rather than as a ready-made import file for every program.
Which rules do reservations need?
- Timing: decide whether stock is reserved on quoting, confirmation, credit approval or payment. A quote can consult availability without reserving it.
- Location and unit: identify where the reservation will be fulfilled and its unit. Stock summed across warehouses does not guarantee one branch has the goods.
- Release: define which cancellation, expiry or approval releases stock, who can do it and what trace remains.
- Order change: increasing quantity, switching warehouses or substituting a product requires another availability check.
- Concurrent sales: two simultaneous confirmations must respect the same allocation rule; an earlier screen lookup does not guarantee stock at confirmation.
If your business allows orders without current stock, separate them from reservations backed by goods. Showing pending fulfillment is more useful than unexplained negative availability. Agree the specific policy with your operation.
What must the system pass before you accept it?
| Test | Required result |
|---|---|
| Partial receipt | Only received goods enter B; the remainder stays explained in transit |
| Duplicate confirmation | The same event creates no additional receipt; its identifier is recognized |
| Return of unreceived goods | A increases only after the documented physical return; transit falls by the same quantity |
| Reservation above availability | Rejection or an approved exception under a visible policy; no silent allocation |
| Unit, lot or location change | Approved conversion and traceability; no incompatible quantities mixed |
| Difference or out-of-order event | Pending review; no invented receipt to make the document complete |
Every movement needs a reference, originating document, quantity, unit, date, locations and responsible people. Start with the inventory control guide for counting and basic records. If Excel balances need cleanup first, follow the inventory migration plan.
Does this require a new system?
Not if your existing software supports locations, transit and reservations under the rules you need. Test its configuration first. An integration or additional development can make sense when sales, warehousing and production use separate tools or exceptions fall outside the program; decide who controls each movement before connecting your ERP.
The Polymer case for Sumiplas shows connected inventory and production. T00–T09 is an additional proposed scope test, not a claim that the customer executes this exact transfer. Review our inventory system, distribution work and scope worksheet to bring your rules and exceptions to the consultation.
Primary sources reviewed October 5, 2026. This model describes operational quantities and a synthetic test; it does not replace the accounting valuation, ownership or documentation policies applicable to your business.
Frequently asked questions
In this model, in-transit goods are not available at the destination until received. If you accept orders against a future arrival, identify them as pending and apply your promise and approval policy rather than confusing them with stock already received.
The goods remain in the warehouse but are committed and no longer available to another order. In the example, 100 physical pieces minus 10 reserved and 5 blocked leave 85 available; the groups do not overlap.
The system must recognize the same event and retain one receipt. In T03, repeating REC-001, the receipt of 8 pieces recorded in T02, does not increase B or deduct transit again. A new movement needs its own identity and evidence.
Record what arrived and leave the rest pending with its reason and responsible person. If it returns to origin, confirm the physical return. Do not mark the full quantity as received or cancel the balance merely to make the document look complete.
Sources
Last updated:
