The Stock Transfer option is used to transfer sub-components to a finished product that has a bill of materials (BOM). Let's take a look.

How to use the Transfer option

1. Click Products and services and click Stock transfer.
2. Complete the Stock Transfers window as follows:

   Product Code	Enter the product code for the finished product.
   Details	This defaults to the Product Record Description for the chosen product code.
   Date	Enter the date that you want to transfer to stock.
   Ref	If required, enter a reference.
   Quantity	Enter the required Quantity of the finished product.

3. Click Save then click Close.
   
   NOTE: The transfer option cannot be used if an item is out of stock. This still applies even if Allow negative stock is selected. 

What transactions are posted

One level of sub-components

• A Movement In (MI) transaction is posted to the finished product.
  To calculate the cost price for the MI, Sage Accounts calculates the total cost price for each and every sub-component. The first in first out (FIFO) cost price of the sub component is used and not the cost price from the sub-component record.
  
  
• A Movement Out (MO) transaction is posted to each of the sub-components.
  
  

More than one level of sub-components

• A Movement In (MI) transaction is posted to the finished product.
  To calculate the cost price for the MI, Sage Accounts calculates the total cost price for each and every sub-component. The first in first out (FIFO) cost price of the sub component is used and not the cost price from the sub-component record.
  
  
• A Movement Out (MO) transaction is posted to each of the sub-components.
  
  TIP:If the first level of sub-component has insufficient stock to transfer, Sage Accounts looks to the next level to see if there are sufficient quantities of the next level of sub-components. For example, finished product, BOM has two sub-components, SUB1 and SUB2. However, SUB2 also has 2 sub-components, SUBSUB1 and SUBSUB2. When transferring to BOM, the quantities currently in stock for SUB1 and SUB2 are used first. If there is insufficient quantity of SUB2, Sage Accounts uses SUBSUB1 and SUBSUB2 as part of the transfer.

NOTE: When more than one level of components are used in the transfer, no transactions are posted to the intermediate products. An MI is posted on the finished product and an MO is posted on the lowest level of sub-component. In the above example if there was nothing in stock for SUB2, when transferring the finished item into stock no transactions would be posted to SUB2, but they would be posted to SUBSUB1 and SUBSUB2.

How to reverse a transfer

If you transfer stock incorrectly, to reverse it you must use the Adjustment In and Adjustment Out options.

The stock records you have transferred the stock from should be adjusted back in and the stock record you have transferred the stock to should be adjusted out.