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Connecting Transfer Orders with Sales Orders in D365 Supply Chain

What the New Pairing Feature Means for Your Warehouse and Sales Teams

Handling inventory across multiple warehouses can be tricky — especially when the stock needed to fulfill a sales order isn’t available in the warehouse that actually ships to the customer. Traditionally, this meant creating a transfer order from one warehouse to another and then manually figuring out how that transfer connects to the original sales order.

The “Pair transfer order lines with sales order lines” feature in Dynamics 365 Supply Chain Management makes this process much clearer and easier to manage. This capability, currently available as a preview feature, lets users link the individual lines on a transfer order back to the sales order lines that required them — giving you better traceability and control over stock movement.

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Why This Feature Matters

In most warehouse setups, transfer orders are used to move inventory from one location to another — for example, from a central warehouse to a regional distribution centre that actually fills the customer order. Until now, although transfer orders could be created from sales orders, there was no easy way to see which transfer lines tied back to which sales order lines once they were created.

With this feature:

• You can see exactly which transfer order lines were created for a specific sales order line.
• You can also view related sales order lines from within a transfer order line.
• If you accidentally attempt to create a second transfer order for the same sales order line, the system warns you — preventing duplicate work.
• You can automatically reserve transfer stock for the sales order it supports, so the items don’t get used for something else by accident (when conditions are met).

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How It Works in Practice

To take advantage of this feature:

1. Enable It in Feature Management – Like many newer capabilities, you must first turn it on in the Feature management workspace.
2. Create Transfer Lines from Sales Lines – Within a sales order, select one or more lines and choose the option to create a transfer order. You can choose whether to add these lines to a new transfer order or an existing one if the warehouses match.
3. Review Related Orders – Once linked, you can open a paired view that shows the sales order line and the corresponding transfer order lines together. This gives you better visibility into the whole process from customer demand to stock movement.

You don’t have to guess which transfer order was created for a shipment. The system can show you this relationship directly — especially helpful when multiple warehouses are involved.

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Better Inventory Tracking and Less Risk

Because the feature also supports automatic marking and reservation of inventory for linked sales and transfer order lines, you get better inventory control. This means:

• The warehouse stock isn’t used to fulfil unrelated orders by mistake.
• Inventory costing remains clearer, since transfer receipts and sales issues can be matched for accounting purposes.

This makes your supply chain operations more reliable — from planning and procurement through to fulfillment.

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What This Means for Your Team

For warehouse managers, planners, and sales operations teams, this improvement simplifies a common but historically complex task. Instead of manually tracking and reconciling order lines across different documents, you get a linked, traceable view right in the core system:

• Fewer mistakes — because linked order lines reduce guesswork.
• Better visibility — you can easily navigate between the sales and transfer orders involved.
• Clearer planning — because matching and reserving inventory helps avoid stock being used in competing orders.

Whether you’re working with scheduled transfers, cross-warehouse fulfilment, or intercompany logistics, this feature gives your team a more transparent and efficient way to manage stock movements that support customer orders.

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Final Thought

The pairing of transfer order lines with sales order lines closes a small but important gap in the Dynamics 365 supply chain process. It streamlines cross-warehouse fulfilment, improves visibility over the life of an order, and reduces errors and confusion — which ultimately means better service for your customers and smoother operations for your teams.

Refer to below video from Microsoft MVP Saurabh Bharati

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