Stock Borrowing in Tuhund: Seamless Inter-Branch Stock Allocation and Settlement

In businesses that operate through multiple branches, stock availability does not always align with where a customer order is being processed. One branch may have the customer, the sales team and the order, while another branch has the required stock readily available.

Transferring the stock physically before processing the sale can introduce unnecessary delays. At the same time, allowing one branch to use another branch's inventory without proper financial and stock accounting can create discrepancies.

Stock Borrowing in Tuhund addresses this challenge by allowing one branch to allocate stock held by another branch, with the necessary authorisation and a structured settlement process.

The result is a practical way to improve stock utilisation, fulfil customer orders faster and maintain accurate branch-wise inventory and accounting records.

1. What is Stock Borrowing?

Stock Borrowing is a Tuhund capability that allows one branch to fulfil a sale using stock available at another branch, subject to the required permissions and authorisation.

Consider a simple example:

• Branch A receives a customer order and raises the sales invoice.

• Branch B has the required stock available.

• Branch A allocates the required stock from Branch B rather than waiting for a physical stock transfer.

The customer-facing transaction can proceed through Branch A, while the stock allocation reflects the actual source of the goods.

This arrangement is particularly useful for businesses with multiple sales offices, warehouses, manufacturing locations or geographically distributed branches.

Stock Borrowing does not eliminate the need for inter-branch accounting. Instead, Tuhund separates the immediate operational requirement from the subsequent financial settlement.

2. Stock Booking: The Most Common Way to Initiate Stock Borrowing

Tuhund supports different ways to initiate and authorise Stock Borrowing, depending on the business process and configuration.

One of the most common and useful approaches is through Stock Booking.

A Stock Booking created at one branch can be assigned, either wholly or partially, to another branch for fulfilment.

For example, suppose Branch A books 100 units of a product for an upcoming customer requirement. Branch B has sufficient stock to fulfil 60 units.

The booking can be partially assigned to Branch B for those 60 units. The remaining 40 units can continue through the appropriate fulfilment process.

This flexibility allows businesses to use available stock across branches without unnecessarily moving the entire booking or changing the original business requirement.

Once the stock is allocated through Stock Borrowing, the transaction remains identifiable as a Pending Stock Borrowing Settlement until the inter-branch settlement is completed.

3. Pending Stock Borrowing Settlement: Maintaining Visibility and Control

The operational allocation of stock and the financial settlement between branches do not always need to happen at the same time.

A branch may need to fulfil a customer order immediately, while the corresponding inter-branch invoice and purchase invoice can be processed later as part of the regular accounting workflow.

Tuhund accommodates this through the Pending Stock Borrowing Settlement process.

Until settlement is completed, the relevant transactions remain available for review. This gives the concerned teams visibility into stock borrowing activity that has taken place but has not yet been financially settled.

Rather than relying on spreadsheets, manual follow-ups or informal communication between branches, users can refer to a dedicated report:

Pending Stock Borrowing Settlement

The report provides a practical way to identify outstanding records that require settlement.

This is especially useful when several branches are active simultaneously and stock borrowing occurs throughout the working day.

4. Settle Multiple Records in One Go

One of the most useful aspects of Tuhund's Stock Borrowing workflow is its ability to settle multiple pending records together.

Imagine that Branch A has borrowed stock from Branch B several times during the day. Each transaction may relate to a different stock booking, customer order or product requirement.

Processing each transaction individually would create unnecessary administrative work.

Tuhund allows multiple eligible pending records to be settled together in a single operation, with just two clicks.

During settlement, the system automatically creates the corresponding inter-branch documents:

1. Sales invoice from Branch B to Branch A, recording the supply of stock between the branches.

2. Purchase invoice for Branch A, recording the corresponding purchase transaction.

The system also performs the required stock transactions associated with the settlement.

This reduces repetitive data entry and helps ensure that the financial documents and inventory movements remain aligned.

Instead of manually preparing invoices, entering corresponding purchase records and separately adjusting stock, users can complete the settlement through a consolidated workflow.

5. Automated Stock and Accounting Transactions

Stock Borrowing involves more than identifying which branch supplied the goods. The transaction must also be reflected correctly in the inventory and accounting records.

Tuhund handles the required stock transactions as part of the settlement process.

The workflow connects the operational allocation with the corresponding inter-branch sale and purchase documentation, helping maintain consistency between the branches' records.

This is important because an incomplete process can leave a business with operational stock movements that have not been fully reflected in its financial records.

By bringing the related activities into one workflow, Tuhund reduces the risk of omissions caused by manual processing.

The exact authorisation and accounting treatment remain subject to the organisation's configuration and applicable business requirements.

6. When Should Stock Borrowing Be Settled?

There is no mandatory daily settlement frequency built into the concept.

Many businesses may find it convenient to settle pending stock borrowing at the end of each working day. Others may prefer to settle every couple of days or follow another internal schedule.

The appropriate frequency depends on the volume of inter-branch transactions, the organisation's accounting practices and its internal controls.

The important point is that operational flexibility does not have to mean loss of control.

Tuhund allows the business to choose a practical settlement frequency while retaining visibility into transactions that remain pending.

For businesses with frequent stock borrowing, regular settlement can help keep inter-branch balances current and simplify reconciliation.

7. Ruaa: Automated Nightly Reporting of Pending Settlements

Even with a straightforward settlement process, pending transactions can be overlooked when teams are busy with day-to-day operations.

To address this, Tuhund's built-in AI assistant, Ruaa, sends a report every night to the concerned persons highlighting unfinished Pending Stock Borrowing Settlement records.

This provides an additional layer of operational visibility.

The report helps the responsible teams identify outstanding settlements without having to remember to open the report and check it manually.

For example, if Branch A has borrowed stock from Branch B during the day and the transactions remain unsettled by night, the concerned users receive the report so that the records can be reviewed and processed according to the organisation's workflow.

The objective is not to force settlement at a particular time. It is to ensure that pending transactions remain visible and do not disappear from attention simply because the immediate customer requirement has already been fulfilled.

This combination of flexible settlement and automated reporting makes the process easier to manage across multiple branches.

8. The Complete Workflow at a Glance

The Stock Borrowing process in Tuhund can be summarised as follows:

1. A branch creates a Stock Booking or initiates Stock Borrowing through another supported and authorised method.

2. The required stock is allocated from another permitted branch.

3. The customer-facing sales process proceeds without waiting for a separate physical stock transfer.

4. The transaction remains under Pending Stock Borrowing Settlement until it is settled.

5. Users select multiple eligible pending records and initiate settlement.

6. Tuhund creates the inter-branch sales invoice and corresponding purchase invoice and processes the required stock transactions.

7. Ruaa sends a nightly report to the concerned persons for any unfinished settlements.

The result is a connected process from stock allocation through to financial settlement.

9. Why This Matters for Multi-Branch Businesses

Stock Borrowing is particularly valuable when businesses need to balance customer service, inventory availability and accounting discipline.

Its practical benefits include:

• Faster fulfilment: Branches can use available stock from other permitted branches without waiting for a separate physical stock transfer.

• Better stock utilisation: Available inventory can be used where it is needed, rather than remaining idle at another branch.

• Flexible allocation: Stock Bookings can be assigned wholly or partially to another branch.

• Reduced administrative effort: Multiple pending records can be settled together, with the system creating the corresponding documents.

• Consistent inventory records: Required stock transactions are handled as part of the settlement workflow.

• Improved financial control: The inter-branch sale and purchase are recorded through the corresponding invoices.

• Fewer forgotten transactions: Ruaa's nightly report highlights pending settlements for follow-up.

• Flexible operational scheduling: Businesses can choose a settlement frequency that suits their workflow.

Conclusion

Stock Borrowing in Tuhund demonstrates how a well-designed ERP workflow can separate the urgency of an operational requirement from the discipline of financial accounting, without losing the connection between the two.

A branch can fulfil a customer requirement using stock available elsewhere, while the corresponding inter-branch transactions remain visible and traceable until settlement.

With consolidated settlement, automated invoice creation, integrated stock transactions and nightly reporting through Ruaa, Tuhund helps businesses manage inter-branch stock allocation with less manual effort and better control.

For businesses operating across multiple branches, the goal is simple: use available stock efficiently, fulfil customer requirements promptly and ensure that every stock borrowing transaction is properly settled.