Transaction Types

Understanding purchase orders, transfers, and production orders

Transaction Types

Tether supports three main transaction types, each serving a different purpose in your supply chain.

Purchase Orders

Purchase orders are orders placed with external suppliers.

When to Use

• Buying products from suppliers
• Replenishing inventory from external sources
• Ordering raw materials for production

Key Information

Field	Description
Supplier	Who you’re ordering from
Destination Warehouse	Where items will be received
Line Items	SKUs and quantities to order
Unit Cost	Price per unit
Lead Time	Expected delivery time

Purchase Order Workflow

Draft → Submitted → Confirmed → Shipped → Received → Completed

Steps in a Purchase Order

Step	Description
Order Placed	PO sent to supplier
Supplier Confirmed	Supplier acknowledges order
In Production	Supplier manufacturing (if applicable)
Shipped	Items left supplier
In Transit	Items being transported
Delivered	Items arrived at warehouse
Received	Items inspected and stocked

Cost Tracking

Purchase orders track:

• Unit costs per SKU
• Shipping costs
• Duties and taxes (if applicable)
• Total order value

Transfer Orders

Transfer orders move inventory between your warehouses.

When to Use

• Rebalancing inventory across locations
• Sending stock to fulfill demand elsewhere
• Consolidating inventory
• Moving to a different storage location

Key Information

Field	Description
Source Warehouse	Where items are coming from
Destination Warehouse	Where items are going
Line Items	SKUs and quantities to transfer
Lead Time	Transit time between locations

Transfer Order Workflow

Draft → Submitted → Picked → Shipped → In Transit → Received → Completed

Steps in a Transfer Order

Step	Description
Order Created	Transfer initiated
Pick Started	Items being collected
Picked	Items collected from source
Shipped	Items left source warehouse
In Transit	Items being transported
Delivered	Items arrived at destination
Received	Items stocked at destination

Inventory Impact

Transfer orders affect inventory at both locations:

Source Warehouse:

• Committed when order created
• Deducted when shipped

Destination Warehouse:

• Incoming when in transit
• Available when received

Production Orders

Production orders are for internal manufacturing.

When to Use

• Manufacturing finished goods from components
• Assembling kits or bundles
• Converting raw materials
• Any internal production process

Key Information

Field	Description
Produced SKU	What you’re making
Components	Raw materials/parts needed
Quantity	How many to produce
Warehouse	Where production occurs
BOM	Bill of Materials defining inputs

Production Order Workflow

Draft → Submitted → Materials Allocated → In Production → QC → Completed

Steps in a Production Order

Step	Description
Order Created	Production planned
Materials Allocated	Components reserved
Materials Consumed	Components pulled from inventory
In Production	Manufacturing in progress
Quality Check	Inspection of finished goods
Completed	Finished goods added to inventory

Inventory Impact

Production orders affect multiple SKUs:

Components (consumed):

• Reserved when allocated
• Deducted when consumed

Finished Goods (produced):

• Added when production completes

Bill of Materials (BOM)

Production uses BOM to determine components:

Finished Good: T-Shirt Bundle (3-pack)
├── Blue T-Shirt M × 1
├── Blue T-Shirt L × 1
├── Blue T-Shirt XL × 1
└── Packaging Box × 1

Comparing Transaction Types

Aspect	Purchase Order	Transfer Order	Production Order
External/Internal	External (supplier)	Internal	Internal
Cost Tracking	Yes (supplier cost)	No (internal)	Yes (component cost)
Source	Supplier	Warehouse	Components
Destination	Warehouse	Warehouse	Warehouse
Lead Time	Supplier + shipping	Transit time	Production time

Choosing the Right Type

Use Purchase Order When:

• Inventory comes from outside your organization
• You’re paying an external supplier
• Items don’t exist in your inventory yet

Use Transfer Order When:

• Inventory already exists in your warehouses
• You need to move stock between locations
• No external purchase is needed

Use Production Order When:

• You manufacture or assemble products
• Finished goods are made from components
• You need to track production costs

Transaction Type Details

Purchase Order Specifics

Supplier Selection

When creating a PO:

• Choose from configured suppliers
• System shows supplier’s lead time and costs
• Can have multiple suppliers for same SKU

Cost Information

Purchase orders include:

• Unit cost per SKU
• Shipping estimates
• Currency handling
• Volume discounts

Receiving

When PO arrives:

• Can receive partial quantities
• Log discrepancies
• Update actual costs if different

Transfer Order Specifics

Availability Check

When creating a transfer:

• System verifies source has inventory
• Shows available vs. committed quantities
• Alerts if insufficient stock

Lead Time

Transit time depends on:

• Configured warehouse lead times
• Distance between locations
• Shipping method

Partial Transfers

Can handle partial shipments:

• Ship what’s available
• Complete remainder later
• Track multiple shipments

Production Order Specifics

BOM Verification

Before production:

• Verify BOM is configured
• Check component availability
• Reserve components

Yield Tracking

During production:

• Track actual vs. planned output
• Log waste or scrap
• Calculate yield rates

Costing

Production costing includes:

• Component costs
• Labor (if tracked)
• Overhead allocation

Next Steps

Creating Transactions

Step-by-step transaction creation

Transaction Details

Navigate transaction pages

Workflow

Understand the transaction lifecycle

Suppliers

Configure supplier information