How to Update Inbound Shipment Receiving Locations in NetSuite?

The receiving location on the inbound shipment line is read-only. It is critical that the location on the item receipt not be edited if there is an ownership transfer, as this ensures the external inventory in transit account is cleared correctly. If the item receipt and inventory locations differ with an ownership transfer, the external inventory in transit account will show a debit balance for the ownership transfer location and a credit balance for the item receipt location. There are four possible ways to handle this, depending on when the diversion occurs and whether an ownership transfer (i.e., incoterms) is involved:

1. If there is no ownership transfer (e.g., DAP incoterms):

   The inbound shipment can be received, and then the location on the item receipt can be edited.

2. If there is an ownership transfer (e.g., EXW/FOB incoterms) and the diversion occurs before ownership is taken:

   The receiving location can be updated on the Take Ownership screen. This action will update the inbound shipment lines. This option is only available if the inbound shipment is diverted prior to the ownership transfer, as the ownership transfer cannot be edited once created.

3. If there is an ownership transfer and the diversion occurs after it is entered into the system, there are two options:

   • Option A: Immediate Receipt and Transfer Order
   • Receive the inbound shipment immediately to the original location.
   • Immediately create a transfer order (with EXW incoterms) to the new location, transferring the external inventory in transit to the new receiving location.
   • Considerations:
   • If the time between the diversion and the actual receipt spans periods, this method is the most accurate for maintaining correct external inventory in transit for both locations.
   • Impacts on item costing at the original location, if the item is already in inventory there, must be considered.
   • If extra fields are tracked on the inbound shipment, this may pose challenges as the transfer order will not be linked back to the PO or the original inbound shipment.
   • Option B: Receive at New Location and Inventory Transfer
   • Receive the inbound shipment at the new location when it is actually received.
   • Immediately create an inventory transfer from the original receiving location to the location where it was actually received.
   • Considerations:
   • If the time from the diversion to the item receipt spans periods, this method will result in an incorrect external inventory in transit value for both locations until the inbound shipment is received. The organization must determine if this is a material concern.