When the goods being transferred arrive at the receiving facility the shipment is received in the same way that normal inventory receipts from the company's vendors are processed. When the PO is received, the system automatically:
• Updates the status of the P/O based on the items being received.
• Increments On-hand inventory for the items received and updates the average weighted cost of these items based on the average cost of the goods in the source location at the time of shipment.
• Writes Inventory transactions to the inventory transaction file (F91) to record the receipt of the merchandise in the destination location.
• Updates the Pending records created when the IFT sales order was invoiced based on the items and quantities received.