How to create transfer orders in Luminous

A transfer order (TO) moves inventory between warehouses when there is a lead time between shipping and receiving. Unlike an instant inventory transfer, a TO tracks items in transit and keeps your incoming and pending counts accurate — automatically creating a linked purchase order and sales order in the background.

Transfer order vs. inventory transfer — which to use?

Luminous has two ways to move inventory between warehouses. Using the wrong method leads to inaccurate counts.

Actions and how to find?	Transfer order Inventory located in Transfer Orders	Inventory transfer located in Manage - Locations
Use when	There is a lead time (shipping + transit) between warehouses	Moving inventory instantly between locations with no transit time
Tracks in-transit inventory	Yes	No
Creates linked PO + SO	Yes (automatically)	No
Updates incoming + pending counts	Yes	No
Syncs TO-generated PO to QuickBooks	No — internal tracking only	N/A

How it works

STEP 1: Navigate to transfer orders

Go to Inventory > Transfer Orders
Click Add New Transfer Order

STEP 2: Fill in the transfer order details

Fulfillment source Required — the channel providing the inventory for this transfer
- Refer to this article if you do not have Fulfillment source setup yet -/articles/transfer-order-update
Delivery destination Required — the warehouse that will receive the transferred inventory
Order date — defaults to today's date; adjust if needed
Arrival date — expected delivery date; used for auto-receive if enabled
Order # — a unique identifier for the transfer (e.g., TO-299)
Shipping method Required — enter the method (e.g., Freight, LTL)
Note — optional field for any additional context or instructions

STEP 3: Configure auto-receive options

Three optional checkboxes control how the system handles receiving:

Auto-receive transfer order on arrival date automated — automatically creates a receiving report entry on the arrival date for this TO's linked purchase order
Open receiving report form on close manual trigger — opens the receiving report form immediately after saving the TO
Auto mark sales order as shipped — marks the linked SO as shipped automatically when the TO is finalized. If you do not check this, you WILL have to manually mark that sales order as shipped to see inventory movement out of the source warehouse.

STEP 4: Add line items

Choose one of three methods:

Option A — Add items manually

Click Add Multiple Line Items
Search for and select the SKUs to transfer
Set the quantity and unit cost for each item
Add a shipping cost if applicable

Option B — Upload via CSV

Click Download Line Items CSV Template
Fill in the SKU and Unit Cost columns, then save
Click Upload Line Items CSV
Check the status field to confirm the batch import matched successfully

Option C — Scan mode

Click Scan Mode in the line items section
Scan barcodes or enter SKUs directly into the scan field
Items are added to the line items table as they are scanned

Use the search bar above the table to find a specific SKU already added. Use Bulk Update to edit quantities or costs across multiple rows at once.

STEP 5: Save and post

Review all header details and line items for accuracy
Click Save Order (top right) to open the save menu
Select Mark as Posted to save and finalize the transfer order (new or draft orders also offer Mark as Draft)

Automatic PO and SO creation: When a transfer order is saved and posted, Luminous automatically generates a linked purchase order and sales order. Your incoming and pending inventory counts update immediately — no need to manually create or update either record separately.

Tips and best practices

Use a consistent order number format (e.g., TO-001, TO-002) to make transfer orders easy to search and audit later.

Double-check the arrival date before saving — if auto-receive is enabled, the receiving report will be generated on this exact date.

Use CSV upload for large transfers with many SKUs to reduce manual entry time and minimize errors.

Use Scan Mode for warehouse floor operations where items are being physically picked and counted.

Transfer orders move cost layers. When inventory moves via a TO, its FIFO cost layers transfer to the destination warehouse. If you track COGS closely, review cost layers in the SKU's Costs Tab after completing a transfer. See How Receiving and Inventory Adjustments Affect Cost Layers in related articles below.

Shipping Method is required. The form will not save without it. Enter the shipping method before attempting to save.

Always mark as posted after saving. A saved-but-unposted TO will not finalize the linked PO and SO or update inventory counts.

Do not use an instant inventory transfer if there is any transit time. The Manage > Locations transfer assumes the move is immediate and will not track in-transit inventory, create a linked PO/SO, or update incoming/pending counts. Use a transfer order instead.

FAQs and troubleshooting

Why is the form not saving?

Check that all required fields are filled: Fulfillment Source, Delivery Destination, and Shipping Method are all required. The form will not proceed without these three fields.

Why didn't my inventory counts update after saving?

The TO must be marked as posted to trigger inventory updates. Go back to the transfer order and click Mark as posted.

Do I need to create a PO and SO separately?

No. Luminous automatically creates the linked PO and SO when the transfer order is posted. Incoming and pending counts update without any extra steps.

Do TO-generated POs sync to QuickBooks Online (QBO)? Important for QBO users

No. The PO automatically created by a transfer order does not sync to QuickBooks Online. It is an internal Luminous tracking object used to monitor inventory movement — not a standard financial PO. Regular purchase orders you create manually are not affected by this. For more details, see the related article below.

My CSV upload failed — what should I check?

Use only the downloaded template without altering the column headers. Confirm that all SKUs exist in Luminous and that the Unit Cost column contains numeric values only. The status field will display the reason for failure.

What happens if my inventory arrives in partial shipments?

You can receive inventory incrementally using the Receiving Report flow. Go to Inventory > Receiving, create a receiving report, and enter only the quantities that have arrived. The TO's linked PO will track what has been received vs. what is still outstanding. See the partial receipts article in related articles below.

What's the difference between a transfer order and an instant inventory transfer?

An instant transfer (Manage > Locations) moves inventory immediately with no transit tracking and no linked PO or SO. A transfer order is for moves with lead time — it tracks in-transit inventory, updates incoming/pending counts, and documents both sides of the move through automatically created records.

Can I edit a transfer order after posting?

Posted transfer orders are generally locked. Contact your system administrator or Luminous support to discuss reversal options before making changes.

How to perform an inventory transfer in Luminous

For instant moves between locations with no transit time (Manage > Locations)

Do TO purchase orders sync to QuickBooks Online?

TO-generated POs are internal objects and do not push to QBO

How transfer orders affect cost layers

FIFO cost layers transfer to the destination warehouse when a TO is completed

How to perform partial receipts in Luminous

Receive inventory in batches when a shipment arrives in multiple deliveries