One of the functionalities of the Novulo WMS and Delivery components, is handling Stock in transit.
Stock in transit is useful to see where inventory is when it’s being moved between two warehouses within the same “My organization” or between two “My organizations” in one application.
Using the functionality is optional, and gives a different process. The functionality is in M5210 which works in combination with M3344 and delivery components.
At the moment of writing (August 2024), stock in transit is supported for intercompany deliveries. It’s not supported at this stage for delivery to customers.
Move stock without ‘stock in transit’
If you move stock without using ‘stock in transit’, for the time the inventory is being moved, it’s no longer part of your inventory.
It will be removed from the inventory when delivering from the source warehouse, and added back to the inventory when it arrives at the destination warehouse. The inventory that’s in currently in the truck that transports the goods, is invisible.
It can cause confusion and wrong decisions when you analyse the current inventory. For example, it may lead to undesired replenishment orders or underestimated total stock value.
Move stock with ‘stock in transit’
With stock in transit, the inventory in transit will be registered and visible.
In the Novulo set-up, it’s designed with the principle: the sending organization is the owner of the stock in transit. The change of ownership will be registered when the goods are being signed in at the destination, similar to Incoterms DAP
When moving goods between two warehouses of the same organization, no sales/purchase exists as ownership doesn’t change.
For each warehouse where goods are being sent from, a (virtual) stock in transit warehouse must be created.
Types of stock changes
When moving stock between warehouses of the same organization, no change of ownership occurs and there are no sales and purchase.
In this case, during both outgoing and incoming deliveries, an Inventory correction of the type “Movement” is made, creating two Stock Changes - a similar set-up as used when moving stock within a warehouse.
When moving stock between two warehouses of different legal entities, change of ownership occurs and sales and purchase transactions are made.
When the goods leave Company A’s warehouse, the goods are being moved to the Stock in transit warehouse. This is the same as when moving stock to a different warehouse within the company.
When the goods are signed in in Company B’s warehouse, ownership changes. This creates a negative stock change, related to the sales from A to B. It also creates a positive stock change, related to the Purchase from Company B.