Chapter 12: Transfer Orders

CHAPTER 12: TRANSFER ORDERS

Objectives
The objectives are:

• Set up transfer orders.

• Create a transfer order.
• Pick items before transfer between warehouses.
• Transfer items between warehouses.
• Shipping and receiving a transfer order.

Introduction
The Transfer orders feature is a process-oriented functionality set that you can
use to manually handle and master schedule created transfer orders between
warehouses in the same company. The Transfer orders feature complements the
Transfer journal functionality in Microsoft Dynamics® AX 2012.

The Transfer orders feature provides the following functionality:

• Ability to specify a transport time for items. Items do not have to be

received the same day as they are shipped.
• Ability to track item progress through the on-hand inventory for the
transit warehouse.
• Forms and print-outs to support the outgoing shipping process and
incoming receiving process.
• The Release transfer order picking form gives the warehouse
employees an overview of the transfer orders that will be released for
picking, based on the actual availability of items.
• Integration of the delivery date control functionality into calculation
of realistic shipment and receipt dates.
• Posting to the General ledger when you make transfers between sites.

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Set Up of Transfer Orders

Before transfer orders can be created, the following elements must be set up for
the transfers being made between warehouses:

• Create a transit warehouse.

• Attach the transit warehouse to the From warehouse used in the
Transfer order chain.

Transit Warehouses
The concept of transit warehouses in the transfer process refers to when items are
in transit, and the items cannot be reserved for use in another order or another
type of issue. Items are physically unavailable for allocation when they are
transporting from one location to another.

Therefore, when a transfer order is created, a transit warehouse is used for the
time that the items are being transported.

FIGURE 12.1 TRANSIT WAREHOUSES

The transit warehouse represents the transport action that occurs between the
From warehouse and the To warehouse. For example, while the items are in a
van, truck, or airplane.

NOTE: When a product's Storage Dimension requires tracking by bin location, it

can cause problems.

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First, a default bin location (for receipt and issue) must be specified for the in-
transit warehouse.

Second, when receiving a transfer order, you cannot specify the bin location as
part of the receipt transaction. A default value for the “receipt bin location”
must be specified for the receiving warehouse, or for the product (as part of its
Warehouse Item information).

If these steps are not taken (especially the default bin location for the in-transit
warehouse), you cannot complete the receipt of the transfer order (because the
in-transit inventory will have a blank value for the bin location).

Transit Warehouses, Reservations and Transactions

When a transfer order line is saved, two inventory transactions are created. The
first transaction is an issue from the From warehouse. The second transaction is a
receipt to the To warehouse. This guarantees that the item is available for
reservation.

You can make an item reservation on the To warehouse. However, the items are
not physically available until the items are received at the To warehouse.

Example: Inventory Transactions on a Transfer Order

The following table uses an example to show how transit warehouses work with
reservations.

When the transfer order line is created, the following inventory transactions are
created:

Item Lot Warehouse Qty Transfer Issue status Receipt

ID . reference status
1001 1 From -1 2 On order, Reserved
physical or
Reserved ordered
1001 4 To 1 3 Ordered

At shipping point in time, two Transit transactions are created. The first
transaction is a receipt with Receipt status = Ordered. The second transaction is
an issue with Issue status = Reserved ordered.

With actual costing, it is not important whether the cost price of the transferred
items is known or unknown at the time of shipping. The next inventory closing
will correct any differences and transfer cost value adjustments from the From
warehouse through the Transit to the To warehouse.

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However, when you use standard cost framework, items defined by using this
valuation method do not require the inventory close process to be performed.
According to standard cost methodology, the product and production are valued
at a pre-determined standard cost, built on the assumption of prices and
quantities.

When you update shipments and receipts, the system creates ledger postings
when there is a transfer between the sites, when a quantity of items is received,
and when an item(s) is scrapped.

Procedure: Create a Transit Warehouse and attach it to a

Warehouse of the Type Default
To create a transit warehouse, follow these steps:

1. Open Inventory and warehouse management > Setup >

Inventory breakdown > Warehouses.
2. Create a new warehouse.
3. Click the General tab.
4. In the Type field, select Transit.

To attach a transit warehouse to a warehouse of the type default, follow these

steps:

1. Click Inventory and warehouse management > Setup >

Inventory breakdown > Warehouses.
2. Select a warehouse with Type ="Default". Type is defined on the
General tab.
3. Click the General tab.
4. Select the Transit warehouse for the warehouse.

Transport Time
In Microsoft Dynamics AX 2012, the transport time between warehouses can be
set up. The system will then apply the transport time when a transfer order is
created between the two warehouses. Specify the transport time for automatically
and manually created transfer orders.

The Transport form is the same as the Transport form used when you set up
the Delivery date control system, except that instead of creating a
warehouse/address relation, a warehouse/warehouse relation can be specified.

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Inventory and warehouse management > Setup > Distribution > Transport

FIGURE 12.2 TRANSPORT FORM

Procedure: Set Up Transport Time

To set up transport time, follow these steps:

1. Open Inventory and warehouse management > Setup >

Distribution > Transport.
2. In the Shipping point field group, select the shipping Warehouse.
3. In the Receiving point field group, select the type Warehouse. This
is a warehouse to warehouse transfer.

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4. In the middle pane, specify the transport time that is used under one
of the following conditions, unless a default Mode of delivery is
specified for the combination of warehouses:
o By master scheduling, between the current combination of
warehouses.
o When a transfer order is created manually.

5. In the bottom pane, specify the modes of delivery available between

the current combination of warehouses for which there is a transport
time specified. If the Default check box is selected, this mode of
delivery is used on transfer order creation, unless the value is
manually overridden.

Delivery Date Control and Transfer Orders

One of the advanced features of transfer orders is the integration of the delivery
date control functionality.

For sales orders, you can use this parameter to find the earliest possible delivery
date to the customer based on several factors such as transport calendars,
transport time, receipt calendars, and other time elements.

In transfer orders, the delivery date control performs the same function with
regard to the earliest receipt date at the To warehouse. Although you specify a
transport time between warehouses, there are many other factors that influence
the shipping date. This includes the date that items are received at the To
warehouse. Another factor is the open and close days on the coverage calendar,
and/or for the From warehouse and To warehouse calendars.

The available ship and receive dates depend on the Open, Closed, Closed For
Pickup settings. Sales lead time for the From warehouse affects transfer order
header dates. Sales lead time on the item affects transfer order lines dates.

Several Delivery date control options are available that include the following:

• Sales lead time

• Available-to-Promise (ATP)
• ATP + Issue margin
• Capable-to-Promise (CTP)
• None.

The delivery date control options, that can be assigned to the product on the
Inventory tab of Default order settings or Site specific order settings, will be
inherited, instead of having the user select the option on the Transfer order
header.

The inherited values can be overridden, and the system prevents the user from
entering an unrealistic shipment and receipt date unless the user turns off delivery
date control (None).

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NOTE: Learn more about the Delivery date control system in Sales Orders in the
Supply Chain Foundation in Microsoft Dynamics® AX 2012 course.

Demonstration: Delivery Date Control and Transfer

Orders
This demonstration shows how the delivery date control works with transfer
orders:

1. Open Inventory and warehouse management > Periodic >

Transfer orders.
2. Create a transfer order manually by clicking New.
3. In the From warehouse select 34, and in the To warehouse select
21.
4. On the Delivery tab, in Mode of delivery field, select 10 (Truck).
5. Create a transfer order line for Item number 1171, Configuration
02 (silver), and Transfer Quantity 10.
6. Bring the line Receipt date forward by one day. If an Infolog
message displays that states the entered receipt date is not valid
because it is not an open date in the To warehouse calendar, select
the appropriate ship and receipt dates in the Available ship and
receipts date dialog box, and then click Update requested ship
date.
7. Close the Transfer orders form.

Using the Transfer Orders Form

You can create transfer orders manually in the Transfer orders form, or
automatically through master scheduling.

Use the Transfer orders form to process transfer orders that are manually
created in the form, or orders created from firmed planned transfer orders
generated by master scheduling. The following two sections provide a
demonstration of how transfer orders are generated from planned transfer orders
and a scenario for manual transfer order creation.

NOTE: If no transit warehouse is specified for an automatically generated

planned transfer, an error is generated when you try to firm the planned order.
To resolve the problem, a transit warehouse must be specified before firming the
planned transfer order.

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Scenario: Create Transfer Orders Deriving from Master

Planning Scheduling
The Contoso Company does not stock item 1402 at Warehouse 11 because its
size and storage requirements mean that it must be stored at Warehouse 21.

However, you use Warehouse 11 as the distribution warehouse for item 1402.
Therefore, from here the item is dispatched to the customer. You have set up item
1402 with special coverage settings to specify that when a requirement exists for
item 1402 from Warehouse 11, and there is insufficient on-hand quantity at
Warehouse 11, a planned transfer order is created to fulfill the requirement.

Demonstration: Create Transfer Orders Deriving from

Master Planning Scheduling
This demonstration shows how to set up the warehouses used to create Transfer
orders deriving from Master Planning Scheduling.

Prerequisite:

The prerequisite for the demonstration are as follows:

• Bring 100 units of item 1402, size 6 into on-hand inventory at

Warehouse 21, by creating and receiving a purchase order.
• Update the Site specific order settings form for item 1402, clear the
Mandatory warehouse check boxes on the Sales order tab for all
sites.
• Update the Default order settings form for item 1402, on the Sales
order tab. Select 2 in the Sales site field and clear the Mandatory
site check box.

Steps:

1. Open Inventory and warehouse management > Setup >

Inventory breakdown > Warehouses.
2. On the Warehouses form, select Warehouse 21.
3. Click the Master planning tab. Verify that the Refilling check box
is cleared, and clear the Main warehouse field.
4. On the Warehouses form, select Warehouse 11. Click the Master
planning tab, and select the Refilling check box.
5. In the Main warehouse field, select Warehouse 21.
6. Close the Warehouses form.

NOTE: Learn more about master planning and creating planned orders in the
Master Planning in Microsoft Dynamics AX 2012 course.

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7. Open Sales and Marketing > Common > Sales orders > All sales
orders. Create a sales order for Customer account 1202. Add a sales
order line for Item number 1402, Quantity 1, Size 6, Site 1, and
Warehouse 11.
8. From the sales order line, click Product and supply > Explosion.
The system will display the Explosion form.
9. On the Explosion form, click Update. The system will display a
form with text stating "Requirement calculation of order SO-
XXXXXX".
10. Click OK. The system displays the Explosion form. In the bottom
pane, note the value in the Number column for the planned purchase
order that is created (MPO_XXXXXXXX).
11. In the bottom pane, click Planned orders. The system displays the
Planned orders form.
12. On the Planned order form, click Firm in the Process grouping of
the Planned order Action Pane.
13. Click OK in the Firming dialog box to firm the current planned
order.
14. Close all the forms.
15. Open Inventory and warehouse management > Periodic >
Transfer orders.
16. A transfer order is created for one piece of item 1402 from
warehouse 21 to warehouse 11.
17. Click Inventory > Transactions to view the transfer transactions.

Scenario: Manual Creation of Transfer Orders

Susan, the Order Processor, has a sales order for 300 items. She is selling from
the main warehouse.

Susan checks in the Release sales order picking form and sees there are only
216 pieces for allocation to the order at the main warehouse. She finds there is an
additional 100 items on-hand at the vendor warehouse.

Therefore, instead of creating a purchase order for the order shortfall, Susan
creates a transfer order for the items from the vendor warehouse to the main
warehouse. She then creates the transfer order line manually for 84 pieces. She
can now fill the sales order for 300 pieces.

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The Transfer Orders Form

The Transfer orders form is the hub of the transfer order functionality. As with
standard sales order functionality in Microsoft Dynamics ® AX 2012, the
Transfer order form consists of a header and lines. In the header, you can define
settings for the transfer order that apply to attached lines and other lines
including:

• From warehouse and To warehouse

• Reservation
• Shipments settings

In the lines, you can specify the items that will be transferred and the delivery
quantities. In the Lines grid, you can override settings that have defaulted from
the header, if it is necessary. For example, the delivery date control located on
the General tab can be activated even though it is not activated on the header.

Additionally, the Transfer orders form provides access to the picking list,
shipment, and receiving functionality by which the transfer is performed.

Inventory and warehouse management > Periodic > Transfer orders

FIGURE 12.3 TRANSFER ORDERS FORM

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Procedure: Create a Transfer Order and Lines

To create a transfer order and lines, follow these steps:

1. Click Inventory and warehouse management > Periodic >

Transfer orders.
2. If a transfer order is created manually, create a new transfer order by
clicking Ctrl+N and selecting the From warehouse and To
warehouse. If the order is created automatically go to the next step.
3. Click the Setup tab and select the Reserve item automatically
check box to reserve items on the From warehouse.
4. Click the Delivery tab, and set the following parameters:
o Delivery date control-To use the delivery date control to
calculate the earliest possible receipt date for a transfer order.
Select a Sales lead time.
o Mode of delivery-Select the Mode of delivery. Depending on
the mode of delivery and the transport time set up for it,
transport times can vary.

5. Click the bottom pane to create transfer order lines.

6. If the transfer order is the result of master scheduling, the items that
will be transferred are already specified. Otherwise, click Add to
create a new line.
7. On the Lines tab, specify Item number, Configuration, Size,
Color, and Transfer quantity. Shipment and receipt dates are
automatically transferred from the header.
8. On the Setup tab, specify the under- and over-delivery percentage
that is permitted for the transfer order, and accept or override the
automatic reservation setting from the header. An alternative is to
override these settings on the transfer order line.

NOTE: To specify an under- or over delivery percentage, first select the Accept
overdelivery and Accept underdelivery parameters, located at Inventory and
warehouse management > Setup > Inventory and warehouse management
parameters. Click Transport. The two parameters are located in the Transfer
orders grouping.

9. The Ship now tab shows the transfer quantity and the remaining
quantity to be transferred. Specify the quantity to be transferred in
the Ship now field, if the quantity is less than the total quantity to be
transferred. When the order is updated and Ship now is selected, this
quantity is updated and will be displayed as shipped.
10. The Receive now tab shows the shipped quantity, the quantity
received to this point, the scrapped quantity if any items are scrapped
on receipt, the receive remainder quantity, and the Receive now
field. In the Receive now field, specify the receive quantity for
partial receipt of the transfer order lines.

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Lab 12.1 - Create a Transfer Order

Contoso Entertainment Systems-Company CEU

Scenario

To stock up on item 5009, the warehouse manager at main Warehouse 21 has

decided to create a transfer order between Warehouses 11 and 21, instead of
creating a new sales order. Create settings for the transfer order according to the
following specifications.

Specifications
From warehouse 11
To warehouse 21
Modes of delivery
Truck 3 days, Default
Rail 5 days
Air 1 day

Challenge Yourself!

1. Make sure that Warehouse 11 has a transit warehouse attached to it.

2. From Warehouse 11, select a transport time to Warehouse 21 by
using the following modes of delivery:
a. Truck = 3 days-Select this as the default mode of delivery.
b. Rail = 5 days
c. Air = 1 day

3. Create a transfer order from Warehouse 11 to 21, with a line of 2,000

each of item 5009.
4. Bring the order receipt date one week forward.

Need a Little Help?

Open the Transport form by clicking
Inventory and warehouse management > Setup > Distribution > Transport.

Step by Step

1. Open Inventory and warehouse management > Setup >

Inventory breakdown > Warehouses. Select Warehouse 11, and
make sure that it has a transit warehouse attached to it.
2. Close the Warehouses form.

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3. Open Inventory and warehouse management > Setup >

Distribution > Transport.
4. In the Shipping point field group, in the Warehouse field, select
Warehouse 11.
5. In the Receiving point field group, in the Type field, select
Warehouse. Select Warehouse 21 in the Warehouse field.
6. In the middle pane, select the transport line.
7. In the bottom pane, verify the modes of delivery according to the
specification in the scenario.
8. Close the Transport form.
9. Open Inventory and warehouse management > Periodic >
Transfer orders.
10. Create a new transfer order by clicking New. In the From
warehouse field select 11. In the To warehouse field select 21.
11. Click the Delivery tab. Make sure that the Delivery date control is
selected. Delivery date control = Sales lead time.
12. Click Add in the bottom pane, and then add a line for Item number
5009, Color 01, and Transfer quantity 2000.
13. Bring the Receipt date one week forward. Save the record. The
receipt date can be fulfilled. Note the Transfer order number.
14. Close the Transfer orders form.

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Picking Items for a Transfer Order

You can pick items for a transfer order the same as for a sales order, or you can
use the Release transfer order picking form.

Scenario
Ellen, the Warehouse Manager at Warehouse 21 is asked to transfer 1,000 of
item 1001 to replenish inventory at Warehouse 11. She creates a transfer order.

The next morning Ellen wants to pick all the orders for dispatch that day. She
opens the Release transfer order picking form and sees that another transfer
order exists for item 1001 from Warehouse 21 to 22 for 2,000 items. Ellen also
sees that a sales order(s) exists for item 1001 at Warehouse 21.

Ellen investigates and discovers that the other transfer order is urgent and the
sales orders have a high priority. So she activates picking for only 200 pieces of
the 1,000 needed, and sends an email message to Warehouse 11 to explain the
situation. Ellen then picking list updates the transfer order line from the Release
Transfer Order Picking form and ships the items.

Ellen is informed it is urgent that Warehouse 22 be replenished with item 1001.

Therefore, she verifies with Susan, the Order Processor, that it is acceptable to
ship the remaining quantity of item 1001 from Warehouse 21. The remaining
quantity is then picking list updated for dispatch. The form is refreshed and the
order lines for item 1001 disappear.

With the overview information that is provided by the Release transfer order
picking form, Ellen can to make an informed choice about how much could be
picked for the order.

Pick an Item for a Transfer Order

Increased process orientation in the picking process of items for transfer is
another feature of Microsoft Dynamics AX 2012. You can perform the item pick
process for items that require picking as a mandatory stage, according to the
setup in the item's item model group, or for those items where the pick process is
optional.

You can perform the picking of items for a transfer order from the transfer order
header by creating a picking list and then updating the picking list registration,
from the transfer order line, or by using the Release Transfer Order Picking form.

The first two methods resemble the pick process for sales orders.

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Inventory and warehouse management > Periodic > Release transfer order
picking

FIGURE 12.4 RELEASE TRANSFER ORDER PICKING FORM

Release Transfer Order Picking Form

The Release transfer order picking form provides an overview of all transfer
order lines with on-hand inventory that have the same inventory dimensions as
the transfer order line that fulfills the order line completely or partly.

This form is especially useful when distributing a given amount of on-hand

inventory between several transfer order lines.

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Information Flags
The Release transfer order picking form has a set of links located at the top of
the form that indicate:

• Whether an order line can be completely filled with current on-hand

quantities, or whether on-hand items have to be allocated between
competing requirements. Sometimes other transfer order lines are
dispatched from the same warehouse.
• The percentage of the total transfer order that can be fulfilled with
existing on-hand inventory across lines in the same order.
• Whether there is a production order line or sales order line that needs
the same item with the same inventory dimension, and with an
estimated date before or equal to the shipment date entered in the
Select dialog box.

You can activate a quantity for picking list update individually for each line or
for mass activated quantities, for example, for all transfer order lines that do not
require allocation.

When you activate the quantities on the lines picking list, you can update the
lines and update the form. If the required quantity is fully activated, allocated for
the picking amount, and picking list updated, the line disappears from the form.

Procedure: Release a Transfer Order Line for Picking

To release a transfer order line for picking, follow these steps:

1. Click Inventory and warehouse management > Periodic >

Release transfer order picking.
2. Fill in the details on the query form that opens and then click OK.
This populates the Release Transfer Order Picking form with
relevant details.
3. Select the Deduct released for picking check box to avoid items
that have a picking list printed, or that have an output order created
and are considered as part of the on-hand inventory. This is a similar
function to the Deduct released for picking function in Release sales
order picking.
4. In the top pane, select the relevant transfer order line.
5. Enter a quantity to activate in the Activate now field by using a
value that is larger than the value in the Activate remainder field.
This quantity is then automatically reserved. You can also click
Activation, and use the functions.

When you run the picking list update, the quantity that is activated is the Ship
now quantity in the update.

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NOTE: Picking lists can also be created for all transfer orders by opening
Inventory and warehouse management > Periodic > Transfer update > Picking
list.

Shipping and Receiving a Transfer Order

This lesson describes the shipping and receipt of transfer orders.

Ship a Transfer Order

You can use the Shipment form to define what will be shipped to the receiving
warehouse. You can also use the Shipment form to edit shipment lines,
determine what quantities will be shipped, when the lines will be posted, and to
print shipment reports.

NOTE: The transfer order lines are only visible if the Edit lines parameter is
selected.

Example: Ship a Transfer Order

A transfer order is created for 20 items of 1001 from Warehouse 11 to 21 and it
specified 10 items to be shipped now.

After a review, the warehouse manager at Warehouse 21 says that he does not
have to have the remaining 10 items because he has found 10 pieces of 1001
already in stock at Warehouse 21.

So, it is decided to close the line by selecting the Close parameter on the line
because no additional action is necessary for the line. Notice that the line cannot
be closed unless the under delivery percentage allows for closure of the line.

Procedure: Ship a Transfer Order

To ship a transfer order, follow these steps:

1. Open Inventory and warehouse management > Periodic >

Transfer orders.
2. Select a transfer order in the top pane.
3. Click Posting > Ship transfer order. The system displays the
Shipment form.

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4. On the Overview tab, make the following selections:

o Update: The user defines his or her default value in the form. If,
for example, this is set to Ship now, the quantity specified in the
Ship now field in Transfer orders is shipped.
o Edit lines: Select this and modify the attached lines.
o Explode: Select this line and any inventory transactions created
for the line are displayed. For example, if five serial numbers are
updated for a transfer order line of five pieces, selecting this
parameter shows five lines each with their serial numbers.
o Auto-receive - Select this parameter to automatically receive the
quantity on shipment.

5. Click the General tab. Specify a worker who is responsible for the
shipment. By attaching the user to a worker, the field is populated,
by default, with the selected employee's name.
6. Enter a Tracking ID to track for the transfer order during the
transfer process.
7. Click the Print transfer shipment check box to specify whether to
create a shipment report that shows what will be shipped.
8. In the Lines tab, modify the Ship quantity.
9. Click the General tab, and specify whether to close the line by
selecting the Close check box. This means that no additional updates
can be made to the line.

NOTE: Transfer order lines can also be shipped by opening Inventory and
warehouse management > Periodic > Transfer update > Ship transfer order.

Procedure: Receive a Transfer Order

Use the Receive form to specify the quantities of inventory that are received at
the receiving warehouse. To receive a transfer order, follow these steps:

1. Open Inventory and warehouse management > Periodic >

Transfer orders.
2. Select a transfer order with a line that exists with the remaining
status Shipping updates.
3. Click Posting > Receive.
4. In the Update field, select the quantity to update:
o All - Whole quantity on the transfer order line.
o Receive now - The quantity entered in the Receive now field.
o Registered - The quantity registered.
o Shipment - The shipped quantity.

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5. Enter settings in the Receive header. Many of the functions here are
the same as for the Shipment header, although a tracking ID can be
selected when you use the update based on a shipment voucher. By
selecting the Print transfer receipt check box, a transfer receipt can
be printed that contains the items received.
6. Click the Lines in the bottom pane and specify:
o The Receive quantity.
o Any Scrap quantity for the receive update.

NOTE: Transfer order lines can also be received by opening Inventory and
warehouse management > Periodic > Transfer Update > Receive. Select all the
transfer orders that you want to be received.

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Lab 12.2 - Pick, Ship and Receive a Transfer Order

Contoso Entertainment Systems-Company CEU

Scenario

You decide to pick the order that you created in the Lab 12.1: Create a Transfer
Order. To make sure that sufficient quantity of on-hand inventory exists to pick
the order line without creating a back order for other lines, use the Release
transfer order picking form to release for picking operations. In the Release
transfer order picking form, make sure that the warehouse dimension is
displayed.

You realize that there is another transfer order line for item 5009 to be transferred
from warehouse 11. Activate half of the available on-hand quantities for each
order. Release and pick the transfer order line that you previously created.

You tell the clerk at Warehouse 21 that you cannot ship the complete transfer
order quantity. The clerk says that he does not have to have the full order
quantity anyway, and what it receives is sufficient.

Before shipping the order, make sure that you only ship the picked quantity and
create a shipping document. Additionally, you do not want any additional
shipping updates to be made to the order after the picked quantity is shipped.

The receiving clerk at Warehouse 21 receives the shipment and informs you that
20 pieces were broke in transit and now they cannot be used.

You must view the scrapped items transactions when the transfer order is fully
received.

Challenge Yourself!

1. Open the Release transfer order picking form, activate the quantity
to be picked, pick the activated quantity and register the pick for the
order created. Set up the transfer order so that the appropriate level
of under delivery is allowed.
2. Post and print the Picking list.
3. Register the Picking list.
4. Make sure that the order is closed for additional updates after
shipping the picked quantity.
5. Set up the Transfer order form so that a shipment document is
automatically printed on update of the transfer order.

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6. Ship the transfer order and make sure that the quantity you select to
ship is the picked quantity.
7. Receive the items and specify that 20 items had to be scrapped on
receipt.
8. From the transfer order line view the transactions for the scrapped
items.

Need a Little Help?

• In the Dimensions display form, select the dimensions that will

display.
• Specify under delivery on the transfer order lines.
• Select the order be closed for additional updates on the Shipment
line.
• Specify scrap in the Receive lines.

Step by Step
To release a transfer order line for picking, follow these steps:

NOTE: As part of the setup, the Picking route status can be set to Completed in
the Inventory and warehouse management parameters. This will be the status of
the picking route after posting.

1. Open Inventory management > Periodic > Release transfer order

picking. Click OK in the Query window that is displayed.
2. Find the Transfer order number that you created in Lab 12.1: Create
a Transfer Order, in the top pane on the Release transfer order
picking form. Select the record.
3. Click Inventory > Dimensions display and select the Warehouse
dimension. Select the Save setup check box and then click OK.
4. There are more than 2,000 units of item 5009 on hand at Warehouse
11. Select the transfer order record. Click Activation > All orders
where entire order can be delivered. The Activate now field is
updated and now displays 2000 for this transfer order.
5. Select the Transfer order record and then click Release for pick.
The system displays the Posting picking list form. In the top pane
on the Overview tab, verify that Ship now displays in the Update
field.
6. Select the Edit lines check box.
7. In the bottom pane, change the Pick quantity from 2000 to 1500.
(That is three quarters of the original transfer quantity.)
8. Click OK. The system now displays 500 in the Activate remainder
field on the Release transfer order picking form for this transfer
order.
9. Close the Release transfer order picking form.

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10. Open Inventory management > Periodic > Transfer orders. To

make sure that an under-delivery can be performed, in the Transfer
orders form, select the transfer order created before. Select the
transfer order line in the bottom pane.
11. On the Setup tab in the Underdelivery field, type "25". This means
that under-deliveries up to 25 percent can be performed.
12. Close the form.

To pick an item for a transfer order, follow these steps:

1. Open Inventory and warehouse management > Periodic >

Transfer orders. On the Transfer orders form, select the record
and then click Posting > Picking list. The system displays the
Posting Picking List form.
2. Select All from the Update field.
3. Select the Edit lines check box.
4. Select the Print picking list check box.
5. Click OK. The system displays the Picking list form.
6. On the Transfer orders form, select the record and then click
Posting > Picking list registration. The system displays the
Picking List Registration form.
7. Click Updates > Update all.
8. Click Close on the Picking list registration form.
9. Click Close on the Transfer orders form.

To ship a transfer order, follow these steps:

1. Open Inventory and warehouse management > Periodic >

Transfer orders. On the Transfer orders form, select the record
and then click Posting > Ship transfer order. The system displays
the Shipment form.
2. In the top pane click the General tab. Select the Edit lines check
box. Select the Print transfer shipment check box to create a
shipment document.
3. In the Update field, select Picked quantity and verify that Ship
quantity = 1500 on the Lines tab in the bottom pane.
4. Click OK. The system displays the Shipment form.
5. On the Shipment form, select the Warehouse check box. Click OK
to print the Shipment report. The system displays the Shipment
report form with the title Transfer order - Shipment.
6. Close the report and the Shipment form.

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 Chapter 12: Transfer Orders

To receive a transfer order, follow these steps:

1. Open Inventory and warehouse management > Periodic >

Transfer orders. On the Transfer orders form, select the Transfer
order record in the top pane, click Posting > Receive. The system
displays the Receive form.
2. On the Receive form, click the General tab. Select the Edit lines
check box. In the Update field select All. The system displays the
transfer order line in the bottom pane with Receive quantity of
1500.
3. In the bottom pane on the Lines tab, select the record and type "20"
in the Scrap quantity field.
4. Click OK to receive and update the transfer order.
5. To view the scrap ledger transactions, select the transfer order line
record in the bottom pane, and then click Inventory > Transactions.
The system displays the Inventory transactions form.
6. Select the record on the Inventory transactions form that displays
Transfer order scrap in the Reference column.
7. Close the Inventory transactions form and the Transfer orders
form.
8. Reset the Inventory and warehouse management parameters. Open
Inventory and warehouse management > Setup > Inventory and
warehouse management parameters.
9. Click Transport.
10. In the Transfer orders field group, verify Activated is selected in
the Picking route status field.
11. Close all forms.

NOTE: Set the Picking route status back to Activated in the Inventory and
warehouse management parameters as part of this exercise.

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Summary
Transfer Orders provided an overview of how to use the Transfer orders
functionality in Microsoft DynamicsAX 2012. It also showed how to perform the
following tasks:

• Setting up transfer orders functionality.

• Creating a transfer order.
• Picking items for a transfer order.
• Shipping and receiving a transfer order.

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 Chapter 12: Transfer Orders

Test Your Knowledge

Test yourself with the following questions.

1. How can transfer orders be created in the Transfer Orders form?

( ) Only automatically from firmed planned transfer orders
( ) Only automatically from the purchase order
( ) Manually, and automatically from firmed planned transfer orders
( ) Manually only

2. From where is the item pick process performed? (Select all that apply).
( ) Transfer order header
( ) Through the Sales order form
( ) Transfer order line
( ) Through the Release transfer order picking form

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Quick Interaction: Lessons Learned

Take a moment and write down three key points you have learned from this
chapter

1.

2.

3.

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 Chapter 12: Transfer Orders

Solutions
Test Your Knowledge
1. How can transfer orders be created in the Transfer Orders form?
( ) Only automatically from firmed planned transfer orders
( ) Only automatically from the purchase order
(•) Manually, and automatically from firmed planned transfer orders
( ) Manually only

2. From where is the item pick process performed? (Select all that apply).
(√) Transfer order header
( ) Through the Sales order form
(√) Transfer order line
( ) Through the Release transfer order picking form

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