When an internal replenishment transaction is processed, the inventory balances of both warehouses involved are automatically updated by the NCAS. In other words, no manual adjustment is required.

Once an order has been recorded as shipped from the sending warehouse, the on-hand balance at the sending warehouse decreases by the shipped quantity, and the on-hand balance at the receiving warehouse increases by the shipped quantity. The on-hand quantity is the only item balance that is affected at the receiving warehouse. This balance update occurs during the first production cycle performed after the order is shipped. General ledger records in the NCAS are also updated at this time.

You will learn more about item balance updates at the sending warehouse in the Processing Internal Replenishment and Usage Orders section.

If a shipment takes more than a day to arrive, the item balances and general ledger records may actually record the transaction before it physically occurs. This occurs since there is no mechanism in the NCAS for tracking items that are in transition.