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What is the difference between converting a replenishment order to purchase or transfer order in Zoho ERP?

Creating a Purchase Order creates an order to procure items from an external vendor, adding them to your inventory once received. Converting it to a Transfer Order moves items between your warehouses or locations within the organization without involving a vendor. The main difference is whether the stock comes from an external vendor (Purchase Order) or transfer between warehouses (Transfer Order), depending on your requirements.

FeaturePurchase OrderTransfer Order
PurposeUsed to purchase items from external vendorsUsed to transfer items between warehouses or locations
Vendor InvolvedYesNo
Inventory ImpactInventory increases after items are receivedInventory moves between locations
Accounting ImpactAffects accounts payableNo accounting impact
UsageProcuring new stockRedistributing existing stock