Glossary
What is a stock transfer?
What a stock transfer between godowns does, why it is not a sale, and what it does to quantities and value.
Updated
In short
A stock transfer moves goods from one warehouse to another within the same business. In SimpleERP a posted transfer moves the quantity at average cost, so total stock value and the books do not change.
A stock transfer moves goods from one godown or warehouse to another within the same business. Quantity falls in the source and rises in the destination by the same amount, at the same cost, so total stock and its value stay unchanged. It is not a sale; within one GST registration no tax is charged, and a transfer note travels with the goods.
Stock transfer: a worked example
Before the festival rush, Lakshmi Steel moves 20 Steel rack 4 shelf from the Main godown to the Ukkadam store.
| Main godown | Ukkadam store | Total | Total value | |
|---|---|---|---|---|
| Before | 52 | 18 | 70 | ₹2,21,900 |
| Transfer of 20 at ₹3,170 | −20 | +20 | 0 | ₹63,400 moved |
| After | 32 | 38 | 70 | ₹2,21,900 |
FAQ
Questions, answered
Is GST charged on a stock transfer?
Not between godowns under the same GSTIN, such as two godowns in Tamil Nadu. A transfer to a branch registered in another state is a taxable supply and needs a tax invoice; SimpleERP's stock transfer does not raise that invoice, so bill the other branch instead.
Do I need an e-way bill for a stock transfer?
The e-way bill rules can apply to movement of goods for reasons other than sale, depending on value and distance. Check the rules for your consignment. SimpleERP prints the transfer note but does not generate e-way bills.
Does a transfer change the cost of the goods?
No. In SimpleERP the average cost is per product across the business, so goods move at the same cost they already carry. No journal is posted because the value stays in the same inventory account.
Can I transfer more than the source godown has?
Not by default. The transfer is refused with the product and godown named. If negative stock is allowed in settings it posts, and the source shows a negative quantity until stock comes in.
Related
Keep reading
Godown
The Indian word for a warehouse or storeroom; stock is counted per godown and moved between them by transfer.
Read moreStock adjustment
A document that corrects recorded stock to the shelf after a count, damage or loss, with a reason and a ledger entry.
Read moreInventory
Stock on hand by warehouse at weighted average cost, with a movement ledger and a low-stock list.
Read more
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