Example business: two shops in the same legal business transferring goods between locations. Separate legal companies can require a different commercial and accounting process.
1. What the process covers
Two branches can sell the same products while holding different quantities. A shared product code helps the business compare them, but each location still needs its own stock and transaction records.
Agree who can promise another branch’s stock, approve a transfer, and confirm receipt. Goods in a vehicle between shops are not simultaneously available at both branches.
2. People and records to keep
On small screens, scroll the table sideways to see every column.
| Record | Who uses it | What to keep |
|---|---|---|
| Product and branch stock | Shop staff | Shared product code, unit, quantity, condition, and branch location. |
| Transfer request | Branch manager | Requested quantity, sending and receiving branches, and approval. |
| Dispatch and receipt | Both branch teams | Quantity sent, goods in transit, quantity accepted, and differences. |
| Daily closing record | Manager and finance | Sales, returns, payment totals, cash count, and unresolved differences. |
3. The everyday workflow
- Use consistent products. Agree product codes, units, and relevant pricing rules.
- Check stock by branch. Review reservations and goods in transit before promising availability.
- Request and send a transfer. Record the approved quantity and the actual handover.
- Confirm receipt. The destination branch checks what arrived and records differences.
- Review the day. Match sales and returns to stock movements and payment records, with owners for any differences.
4. A small business example
Branch A has eight units and Branch B has two, making ten in total. A sends three to B. During transit, A has five, B still has two, and three are in transit. The business still accounts for ten.
After B accepts all three, the position is five at A and five at B. If only two arrive, record the one-unit difference for investigation. Increasing B by three without checking receipt would hide the actual problem.
5. Checks and common problems
- Do not record an internal stock transfer as an external customer sale just to move quantities between branches.
- An incomplete transfer should stay visible until the receiving branch confirms it or the difference is resolved.
- Keep staff access appropriate to their branch and role while providing management with the required combined view.
- Review offline or delayed transactions before relying on a single “live” availability figure.
- For transfers between separate legal businesses, have finance confirm the required documents, pricing, and accounting treatment.
6. Start with a simple system
Start with shared product codes and separate branch locations. Add a transfer record with sent, in transit, and received states. A basic ERP or retail application can connect that record to branch sales, returns, and daily closing.
Pilot a small set of transfers and review missing receipts, branch stock differences, duplicate transactions, and cash differences. Keep the daily process understandable for the staff opening and closing each shop.
7. Frequently asked questions
Can we simply add both branch quantities together?
A combined total is useful, but sales staff also need the actual location, reservations, condition, and in-transit status before promising stock.
When should the receiving branch add transferred stock?
When it actually receives and checks the goods under the agreed process. Keep dispatched goods visible in transit until then.
Does this process apply unchanged to separate legal companies?
Not necessarily. Separate entities may need intercompany commercial documents and accounting treatment. Confirm that design with finance before using a simple internal-transfer model.
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