What exactly is a transit warehouse? Can you give a practical example? Is transit warehouse like a temporary place until stock is sorted in the warehouse. Like, if a supplier leaves stuff on street beside the store is that a transit warehouse?
Imagine you have two physical warehouses and they are some distance away from each other.
Call them warehouse A and B.
If you transfer goods from A to B it might take 2 days to arrive at B.
When you do the stock entry (Type Material Transfer) the on hand quantity in A will reduce immediately the truck leaves A with the products.
But the physical on hand quantity in B will not increase until the Truck arrives in B in two days time.
This is where the transit warehouse comes in handy.
The goods in the truck will be in the transit warehouse until the staff in warehouse B accepts them physically and on the system.
When they accept the products in warehouse B, the qty will reduce in transit warehouse and move to warehosue B
Hope this is explanatory enough?
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Awesome explanation, thanks.