Creating a Store Transfer
Imagine you’ve created a store transfer, say for example, ST202572. From the Store Management module, you can see it moving out of one store and heading into another. But the real clarity comes when you generate the Journal Entry.
Flawless POS automatically uses two GL accounts for the transaction:
- Transfer in Transit — where the item sits while it’s moving between stores.
- Inventory — where the item is credited or debited depending on which side of the transfer you’re on.
How It Looks in the General Ledger
Here’s the flow you’ll see when the journal entry is created:
- Product leaves Store 1:
- Debit: Inventory in Transit
- Credit: Inventory (Store 1)
- Product is received by Store 2:
- Debit: Inventory (Store 2)
- Credit: Inventory in Transit
This ensures that the sending store’s books reflect the decrease in inventory, while the receiving store’s books show the increase once the product is in hand.
One key detail: every store maintains its own General Ledger. That means when you generate the GL for Store 1, you’ll see the outgoing side of the transaction. To view the incoming side, you’ll need to switch to Store 2 and generate its GL separately.
This separation keeps each store’s financial records clean, accurate, and independent.
Key Features That Make Transfers Easy
Inventory transfers touch both sides of your business: the physical movement of goods and the financial records that support them. Flawless POS bridges the gap by automatically creating the right journal entries, keeping your accounts accurate without manual effort. Here are the features that make this process seamless:
Together, these features make transfers more than just a stock movement. They become part of a complete financial story. Every debit and credit is tracked, every account stays balanced, and your team can focus on operations knowing the books are in order.
Final Tip: Always Close the Loop
The transfer process isn’t finished until the receiving store posts its entry. Make sure both sides, the sending store and the receiving store, generate their General Ledgers. That way, the in-transit accounts balance out, and your records stay accurate.
When managed correctly, transfers become more than a movement of stock. They’re a synchronized record that keeps your entire business aligned.
