Stock Transfer Huong Vu September 14, 2023

Stock Transfer

What is stock transfer?

Stock transfer refers to the process of transferring goods from a particular distribution chain to others. During these processes, branches and warehouses are responsible for creating internal purchase orders for stock transfer.

Types of stock transfer

  • Intercompany transfer

In this process, inventory is transferred between two companies with the involvement of many departments in both parties such as sales, logistics or procurement. The process may become more complicated if identification codes used by the two parties are different.

  • Intra-company transfer

In this type of stock transferring process, two particular locations belonging to the same company participate in the inventory transferring process. The intra-company transfer is considered less complicated than intercompany transfer thanks to the involvement of departments in only one entity.

  • One-step transferring process

In this process, inventory is transferred from one to another location through a single Stock Transfer Order (STO). Companies are recommended to use this method only in case it is an intra-company transferring process and the locations should not be too far from each other.

  • Two-step transferring process

This is a more efficient process in terms of tracking stock transferring and inventory management since STO is issued by both ends.

Why should retail businesses document stock transfer?

Retail businesses have to annually carry out stock transfers numerous times. And following are highlight benefits that retailers may get from an efficient transferring process.

  • Stock transfers enable businesses to maintain their inventory records through documentation.
  • Businesses can also manage unexpected damage which may be caused by improper transferring processes.
  • With transferring documentation,retailers can assure their audit processes are accurate and reliable.
  • Transferring documentation also supports retailers to keep their businesses on track.
  • STOs document used in transferring processes simplifies the intercompany transfer.
  • Companies can also aid taxation and compliance audits