There are two options that can be used to transfer inventory between two inventory locations in the system.
Immediate Transfer – An immediate transfer is used to move inventory between two logical inventory locations that are physically close to each other. When the transfer is processed, the system immediately adjusts the inventory in the source and destination inventory locations, and it updates the serial records with the destination location. A serial history transaction is also written for each serialized item that is being transferred.
Inter-Facility Transfer – An Inter-Facility Transfer or IFT is used to handle transfers between warehouse facilities that are not close to each other. The option allows you to record the shipment of the items from the source warehouse and to control when the items are received into the destination location (so that you don’t show inventory available at the destination warehouse prior to it arriving).
When an IFT transfer is processed, and the items being transferred are shipped out, the system creates records in the Pending file, which are used to track the goods while they are in transit. When the items are received at the destination warehouse, the PO used for the transfer is received, which brings the items and serial numbers into stock in the destination location.