---
id: transfers-quarantine
title: "Transfers & Quarantine"
description: "Transfer stock between warehouses and storage bins, manage in-transit shipments, and hold items in quarantine."
category: "Inventory"
order: 11
resource: "inventory"
action: "read"
routes:
  - "/inventory/transfers"
  - "/inventory/transfers/:id"
  - "/inventory/quarantine"
tags: ["transfers", "quarantine", "inventory", "in-transit", "quality", "warehouse", "scrap"]
fields:
  order_number:
    title: "Transfer Number"
    summary: "Unique transfer order identifier (e.g. TRN-2026-00034)."
  source_location_id:
    title: "Source Warehouse"
    summary: "Originating facility and bin where stock is picked."
  destination_location_id:
    title: "Destination Warehouse"
    summary: "Target facility and receiving bin for the items."
  quarantine_reason:
    title: "Quarantine Reason"
    summary: "Mandatory classification (e.g. Damaged in Transit, Quality Audit, Customer RMA)."
  status:
    title: "Transfer Status"
    summary: "Stage of the transfer (Draft, In-Transit, Received, Cancelled)."
related:
  - "inventory"
  - "receiving"
  - "putaway"
  - "purchase-returns"
---

# Stock Transfers & Quarantine

The **Transfers & Quarantine** module manages stock relocation between warehouse facilities and controls quality inspection holds on damaged or suspect goods.

---

## Transfer Lifecycle & Quarantine Logic

```mermaid
stateDiagram-v2
    [*] --> Draft : Create Transfer Order
    Draft --> InTransit : Dispatch from Origin (In-Transit Bin)
    InTransit --> Received : Receive at Destination (Active Storage)
    Draft --> Cancelled : Cancel
```

### 1. Inter-Warehouse Virtual Bin Accounting
To ensure perpetual inventory balances remain accurate while goods are moving between physical sites:
* **Dispatching from Origin**: Picking and dispatching items moves them out of the origin facility's pickable storage bins and into a virtual **`in_transit`** location. Physical on-hand at the origin is decremented immediately, but destination available stock does not increase prematurely.
* **Receiving at Destination**: When the vehicle arrives at the target facility, dock staff receive the goods, transferring units from `in_transit` into destination storage or dock bins.

### 2. Quarantine Management & Availability Isolation
* **Isolation Rule**: Any inventory residing in a bin with `bin_type = quarantine` is strictly excluded from `Available Stock` calculations (`isPickableBin = false`). It cannot be reserved by new sales orders or allocated to pick waves.
* **Three Quarantine Resolution Paths**:
  1. **Release to Active Stock**: Quality inspection passes; stock is moved from the Quarantine bin into standard `storage` or `pick` bins, immediately restoring Available Stock.
  2. **Scrap / Write-off**: Items are condemned as unrecoverable waste. The stock count is adjusted to zero and the system posts:
     ```
     Debit:  Inventory Scrap / Shrinkage Expense
     Credit: Inventory Asset Account
     ```
  3. **Return to Vendor (RTV)**: If supplier defect is identified, the system initiates a linked **Purchase Return** to ship goods back for vendor credit.

---

## Step-by-Step Workflows

### 1. Executing an Inter-Warehouse Stock Transfer
1. Go to **Inventory** → **Transfers** (`/inventory/transfers`).
2. Click **New Transfer**.
3. Select the **Source Warehouse** and **Destination Warehouse**.
4. Add products and transfer quantities.
5. Click **Dispatch Transfer**. Stock moves to `in_transit`.
6. At the receiving warehouse, go to **Receiving** → **Incoming Transfers** and click **Receive Stock** to move items into destination storage bins.

### 2. Quarantining and Resolving Stock
1. Go to **Inventory** → **Quarantine** (`/inventory/quarantine`).
2. Click **Move to Quarantine**.
3. Select the product, quantity, origin bin, and **Quarantine Reason**.
4. After inspection, choose an action:
   - Click **Release from Quarantine** to return units to pickable stock.
   - Click **Write Off / Scrap** to recognize an inventory loss in the General Ledger.

---

## Field Reference

| Field | Description |
| :--- | :--- |
| **Transfer Number** | Unique transfer order reference (e.g. `TRN-2026-00034`). |
| **Source Warehouse** | Originating facility and bin. |
| **Destination Warehouse** | Receiving facility and target storage bin. |
| **Quarantine Reason** | Quality, damage, or audit reason code for held inventory. |
| **Status** | Stage (`Draft`, `In-Transit`, `Received`, `Cancelled`). |