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244 CHAPTER 7 Inventory and Warehouse Management Processes

Tasks
The only task involved in this step is to create the transfer requirement.
Although the ERP system is generally confi gured to create a transfer require-
ment automatically as a result of activity in IM, the requirement can also be
manually created. In the case of a transfer posting, a posting change notice
(explained below) is created instead of a transfer requirement. Posting change
notices can be created either manually or automatically by the ERP system as
a result of a transfer posting in IM.
Recall from previous chapters that IM activities occur in procurement,
fulfi llment, production, and inventory management processes. In procure-
ment, when a goods receipt against a purchase order is created, a transfer
requirement is automatically generated as well. Two steps in the production
process can potentially generate a transfer requirement. First, when a pro-
duction order is released, a transfer requirement for the materials needed
for production is created. Then, when the materials have been produced and
received into inventory, the receipt of fi nished goods (or semifi nished goods)
against the production order triggers a transfer requirement. In inventory
management, the stock transfer process uses a transfer requirement. Planning
a warehouse movement in fulfi llment is a little different than in other pro-
cesses. Recall that a delivery document is created in the shipping step of
the fulfi llment process to facilitate picking of materials. The delivery docu-
ment serves as a transfer requirement and is used to plan the warehouse
movement.
In the case of a transfer posting, however, the system creates a posting
change notice rather than a transfer requirement. A posting change notice is a
request to change the status of the material, for example, from in quality inspec-
tion to unrestricted use. Finally, a transfer requirement can be created manually to
facilitate an internal movement of materials from one bin to another within the
warehouse. Thus, the source of the requirement for warehouse movement is typi-
cally a material document or a production order, as illustrated in Figure 7-21.

Figure 7-21: Reference documents for a transfer requirement

Outcomes
The outcome of this step is either a transfer requirement or a posting change
request. Note that there is no fi nancial accounting impact. In IM the FI impact
occurs when a goods movement takes place. At that time, IM inventory is

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