Material transfer process refers to the physical movements of the material between inventory locations. Material transfer occurs when an inventory location in a particular area runs out of stock and can not meet the demands for material.
In material transfer process, a request note called as Material Transfer Note is initiated by an inventory location requesting another inventory location for delivery of materials. A transfer note usually includes, item names and quantity of each items, date, source and destination inventory location names.
Generally, an authorized user associated to an inventory location generates a transfer note to another inventory location for material transfer.
Following three different activities are involved in Material Transfer process:
Generating material transfer request by one inventory location to another inventory location through Material Transfer Note
Distributing or issuing materials from the source inventory location to the destination inventory location through Issue On Transfer Note
Receiving materials against such issues through Receipt On Transfer Note