Transfer Order Cost Posting

This section covers landed costs incurred during transfer order processing. Transfer Orders are used when goods move between locations (e.g., from an in-transit/port of loading location to a warehouse/port of receipt) and additional costs such as duty, stevedoring or haulage are incurred at the point of transfer receipt according to Incoterm agreements.

Transfer postings are intentionally documented separately because transfer receipts behave differently from purchase receipts in Business Central.

Business Central treats transfer receipt costs as actual cost and therefore Clever Landed Cost postings follow this constraint.

• Any cost posted at transfer receipt time immediately affects G/L accounts as actual cost

• There is no Inventory (Interim) / Invt. Accrual Acc. (Interim) expected cost posting for the landed cost portion on transfers

• The approach differs from Purchase Receipts where costs can be posted as expected and later reversed when invoiced

Worked Example Scenario

All of the Landed Cost posting examples in the following sections for Transfers will be based on the same Item and Landed Cost information detailed below.

The transfer receipt lifecycle depicted in the following examples will follow the below two stages.

1. Transfer Receipt (goods received into destination location)

2. Stevedore Invoice (vendor invoice for Stevedore service (8.00)

Key Accounts

The following Accounts within Business Central are used within Business Central for handling Inventory and Landed Cost postings during the transfer process and will be referenced within the following sections of the user guide.