In ITR (Inventory Transaction Register), records are added for transfer transactions. You can set up your system to include "Transfers-In" when calculating order points. When you run the Order Point Report (ROP), the transfer quantity will not be factored into the order point calculation for the SKU in the To-store.
Review the following example to see how it works when you set up your system to include Transfers-In in order point calculation. Assume there is sales history in Inventory Maintenance for the SKU used in the example, the same sales amounts in both Store 1 and Store W.
In POS, create a transfer for SKU 101287. From-store is Store W and the To-store is Store 1. The transfer quantity is 100.
Process the transfer as you normally would, changing the status from R-request, to S-shipped, and to C-complete.
At POS in Store 1 (the To-store for the transfer), sell SKU 101287, the transfer-in quantity of 100.
Run the ROP report to calculate order points. For Store W, the new order point is 33. For Store 1, the new order point is 15. The transfer-in quantity of 100, from the sales history in Inventory Maintenance, was not included in the ROP calculations for Store 1.
If you don't use this feature, then the new order point for the SKU in both Store W and Store 1 would be 33. This is because the sales history of 100 (in Inventory Maintenance) is in both Store 1 and Store W and that quantity is included in the ROP calculation for both stores.
As illustrated by the example, if you set up your system to include Transfers-In when calculating order points, then your order points in the To-store are not inflated due to Transfers-In quantities.
If you use this feature, run the ROP report after the transfer transaction is complete (Status C) and the item has been sold at POS (invoiced).
