Inter Branch Stock Transfer between the Branches

ERPNext Stock/Inventory
1

Hi,

On the topic i have seen multiple Posts, but none of them concluded with a solution.

My scenerio is, i have 1 single company at Karnataka & in the same company i have 10 branches pan india, which are my warehouses at different states having different GSTINs.

When i have to do stock transfer from one state to another state, what to do in ERPnext.
later, i will be selling to customer which is registered in the single company & selecting the respective state warehouse code.

can someone help me on this.

Amit

2

Hi,

Please check the following documentation:

Thanks,

Divyesh Mangroliya

3

Hi Divyesh,

Thanx for sharing the doc link, certainly it helped. However 80% of the requirement is solved by the native solution. However, am looking for more SAP kind of implementation of handling STO

  1. Using the Sales & Purchase Invoice will hit my Revenue & expense A/c which i do not need as this is not my true sale & purchase.
  2. Rather it should be parked to some Clearing A/c with some reconciliation report for GST compliance and monthly books closure.
  3. Additionaly it is mentioned “Unrealized P&L field is a consolidation-only mechanism”, this is considering multiple co , however, i have only 1 co.
  4. Both Frappe docs (“Stock Transfer with GST” and “GST for multiple branches”) walk through the setup using one example pair — essentially “Branch A transfers to Branch B.” The steps shown are:

    1. Create one Internal Customer, tied to Branch B

    2. Create one Internal Supplier, tied to Branch A

    3. Set one default In-Transit Warehouse

    4. Create one Tax Category with one Source State

    5. That’s a complete, correct example — for one lane between two branches. Neither doc says “now repeat this for your other 8 branches” or gives you a checklist/template for doing so. It’s not wrong, it’s just scoped to teaching the mechanism, not to operating it at your scale.

Practicality, use can do lot of mistake & jeopardize the GST completely.

nevertheless, thanx for your revert, this doc has given me a clue and given me basis to work upon, i have found a solid work around and fix.

If anyone reading this reply in future feel free to talk to me on my TG handle @singha_amit

Regards

Amit Singha

4

Does this help?

5

Hi Mihir,

Thanx for your help, but again this doc talks about Inter Company Invoices, which means multiple cos, however my scenerio is 1 co multiple Brances.

One legal entity (single Company, single PAN, home state Karnataka) operates 10 warehouses across India, each registered under a separate GSTIN. Stock is routinely moved between these branches before it reaches an end customer, who is billed from the receiving branch’s GSTIN.

1.2 The GST law problem

Under GST, every GSTIN is a “distinct person” (Section 25(4), CGST Act) even though all 10 belong to one PAN. Movement of goods between two GSTINs is a deemed supply under Schedule I, even with zero consideration. This means:

  • A tax invoice is legally required for every inter-branch movement (not just a delivery challan).

  • Valuation follows Rule 28 — open market value, or transfer price if the recipient branch has full ITC eligibility (which is normal for branches of the same business).

  • e-Way Bill is mandatory for movement value above ₹50,000.

  • e-Invoicing (IRN) is mandatory on these same transfer invoices if aggregate turnover crosses the notified threshold — this is easy to miss because the transaction doesn’t feel like a “sale.”

  • Each of the 10 GSTINs must independently and correctly report this movement in its own GSTR-1 and GSTR-3B.

Btw , i have resolved this and thank you so much for the revert.

We can consider this thread as closure. ….:slight_smile:

Regards

Amit Singha