Source inventory deduction on transfer order reconciliation
When you link an existing inbound shipment to an already-posted transfer order (the manual reconcile path in Inbound Shipments), Luminous automatically ships the outgoing internal sales order that was created when the transfer order was posted.
What this means for your inventory
| Action | What Luminous does |
|---|---|
| Transfer order posted | Creates a linked sales order at the source warehouse (reserves on-hand as pending) and a linked purchase order at the destination |
| Inbound shipment linked to an existing posted TO | Automatically marks the source SO as shipped, deducting on-hand at the source and releasing the pending reservation |
| Receipt recorded at destination | Receiving report adds on-hand at the destination warehouse |
Both sides of the transfer are now balanced without any manual step.
When the auto-ship does NOT run
The automatic source deduction is skipped in two situations where it would be incorrect:
- Already-shipped SO — if the source sales order was already marked shipped before reconciliation, the deduction has already been recorded and is not repeated.
- Externally fulfilled or 3PL-owned source — if the source warehouse group's on-hand is managed by an external stock feed (e.g., the warehouse group has external inventory management enabled), the external feed records the departure and Luminous does not perform an additional deduction.
Work-order link path (link-only, no deduction)
When an inbound shipment is linked to a transfer order via the work-order finished-goods flow, the link is created for tracking purposes only and the source SO is not automatically shipped. You must ship the source SO manually in that workflow.
Troubleshooting
Source on-hand did not decrease after reconciliation Check whether the source sales order is already in a shipped status. If it is, the deduction was already applied. If it shows as open, navigate to the transfer order, find the linked sales order, and review its status. Contact support if it appears stuck.
I reconciled before this fix was released — do I need to do anything? If you had transfer orders reconciled in the past where the source on-hand was not deducted, you may see the correct quantity only going forward. Historical reconciliations are not retroactively re-shipped. Work with your ops team to identify any over-stated source locations and create a manual inventory adjustment if needed.