How Processing Transfer Orders with Dynamics 365 can Help Pharma Companies

Posted on: December 8, 2021 | By: Guy Logan | Microsoft Dynamics AX/365, Microsoft Dynamics Manufacturing

Pharmaceutical and Life Science organizations are exceptionally vital in the midst of a global pandemic. The world has always been in constant need of innovative medicines, however, because of COVID-19, the need for the development of a vaccine by life science organizations was crucial. In order to meet the demands of the world, efficiency in company operations is imperative. As companies are increasingly concerned about the cost and efficiency of their supply chain, pharmaceutical companies are looking to outsource manufacturing and distribution to countries like India since there are reduced labor costs, low or no infrastructure costs, lower material costs…etc.

A transfer order is a document used for executing the movement of goods from one warehouse location to the other or the goods movement between a storage unit to another within the warehouse. You can use transfer orders to process inventory transfers between warehouses in America and India. Here is how to get started with stock transfer orders:

Enable stock transfer functionality

Enable the following features in the Feature management workspace:

• (India) Improvements in unit price and cost price handling in Stock transfer orders
• (Stock transfer for India) Set up the default transfer type and price type for transfer orders created from Master planning
• Enable uniform tax amount and GST transaction ID for both shipment and receipt transaction of a stock transfer order

Set up default transfer type and price type for transfer orders

You can define a default transfer order type and a default price type for transfer orders that are created manually. On the Inventory and warehouse management parameters page, on the Transfer orders tab, select Stock transfer in the Transfer type field to enable the Stock transfer functionality for all newly created transfer orders. In the Price type field, select a default price type for newly created stock transfer orders:

• Cost price – The cost price, or the on-hand price, of the item will be used for stock transfer orders.
• Transfer price – The transfer price that is set up for the item will be used for stock transfer orders.

Configure Master planning parameters

You can define a default transfer order type and a default price type for transfer orders that are created when confirming planned orders in the Master planning module. On the Master planning parameters page, on the Standard update tab, select Transfer type and Price type in the Firm – Transfer group.

Configure stock transfer posting

You must configure the Interim transit account, which is done on the following pages:

• In the Inventory management module, on the Posting page, on the Transfer order tab, specify the Interim transit account.
• On the Tax setup page, click Setup, and on the Setup page specify the Interim transit for stock transfer account for all GST components that may be created for GST on stock transfer.

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