When Is This Required?
Use this process when:
Inventory must change tax status during transfer
The origin and destination warehouses use different inventory “buckets”
A bonded status must convert to tax-paid (or similar)
Common example:
Fulfillment (Bonded) → Fulfillment (Tax Paid)
This scenario applies primarily to warehouses such as:
McMinnville, OR
Tualatin, OR
Paso Robles, CA
If your warehouse does not support multiple tax statuses, this process likely does not apply.
What Is an Inventory Status?
An inventory status represents the “bucket” that determines:
Tax treatment
Order eligibility
Reporting category
Some clients maintain multiple inventory statuses per SKU across warehouses.
Inventory status is not the same as warehouse location.
Why a Standard Internal Transfer Will Not Work
Standard Internal Transfers:
Move inventory between warehouses
Preserve the original inventory status
Do not change tax classification
When tax status must change, a two-step process is required.