You order 100 blue shirts from a supplier for your Toronto warehouse. The supplier sends 60 shirts first and says the other 40 will arrive later.

You need Shopify to show what you ordered, what is on the way, and what has arrived. Shopify uses a purchase order and an inventory transfer for these separate parts of the process.

Shopify purchase order and inventory transfer workflow

What a Purchase Order Records

A purchase order records what you agreed to buy from a supplier.

For the blue shirts, it records:

  • The supplier
  • 100 blue shirts
  • The cost
  • Toronto as the destination

It tells you what you ordered. It does not mean the shirts have arrived.

What an Inventory Transfer Records

An inventory transfer records stock moving from one location to another.

When you create a transfer from the blue-shirt purchase order, Toronto is the destination. The transfer then records when the supplier ships the shirts, how many arrive, and how many you accept.

Use a purchase order for the supplier order. Use its linked transfer to track the shipment and receive the stock.

What Incoming Inventory Means

Incoming inventory is stock that is on its way to a location but has not been received there yet.

In this example, Shopify shows the following quantities:

  • The purchase order records 100 shirts after you place the order.
  • The transfer shows 60 shirts as Incoming after the supplier ships the first shipment.
  • After those 60 shirts arrive, they become Available and Incoming returns to zero.
  • When the supplier ships the remaining 40, they become Incoming until you receive them.
  • After the last 40 arrive, all 100 shirts are Available.

Incoming stock is useful for planning your next order. Shopify does not add it to Available inventory until you receive it.

How to Order and Receive the Shirts

Use these steps for the blue-shirt order:

  1. Go to Products → Purchase orders and create a purchase order for 100 shirts.
  2. Mark the purchase order as Ordered after the supplier confirms the order.
  3. Select Create transfer on the purchase order and choose the Toronto warehouse.
  4. Process the transfer when the supplier ships the shirts. The shipment then appears as Incoming at Toronto.
  5. Open the transfer when the shipment arrives and select Receive items.
  6. Enter 60 as the quantity received. Shopify adds those shirts to Available inventory and leaves 40 as Incoming.
  7. Receive the remaining 40 when they arrive.

Receive the quantity that arrived, not the quantity on the original purchase order. This keeps Available inventory aligned with the stock in your warehouse.

Shopify's purchase order documentation and linked transfer documentation show the current workflow.

When to Create a Transfer Without a Purchase Order

Create a standalone transfer when you are moving stock between your own locations.

For example, if 50 of the blue shirts are already Available in Toronto and you send them to New York, create a transfer from Toronto to New York. Shopify removes those shirts from Available inventory in Toronto and shows them as Incoming at New York until you receive them there.

There is no supplier order in this case, so you do not need a purchase order.

If a Shipment Is Short or Damaged

Enter what you actually received.

If the supplier sends 58 usable shirts and 2 damaged shirts, receive 58 and reject 2. The rejected shirts do not become Available.

If the supplier sends the order in several shipments, receive each shipment separately. The quantity still waiting stays Incoming until it arrives or you account for it.

If you receive many products at once, 506 EasyScan SKU & Barcode can help you scan items while receiving them against the transfer.

Common Mistakes

Marking the purchase order as Ordered and stopping there. This records the order, but it does not record what the supplier has shipped or what you have received.

Receiving the full order before it arrives. Shopify adds received quantities to Available inventory. Entering all 100 shirts when only 60 arrived makes your stock count too high.

Choosing the wrong destination. Incoming inventory appears at the location selected on the transfer. Check the destination before processing it.

Treating Incoming as Available. Incoming stock has not reached your warehouse yet. If you let customers buy it before receiving it, read how to prevent overselling during a Shopify seasonal sale.

Use Incoming When Planning Your Next Order

Check Incoming before placing another purchase order. It shows what you have already ordered but have not received.

For the blue shirts, you might see 8 Available and 40 Incoming. That tells you stock is low now, but another 40 shirts are already on the way. You can wait for that shipment before ordering more, or contact the supplier if it is late.

If you track your Shopify stock in Google Sheets, sync Shopify inventory to Google Sheets can help you compare Available quantities with your purchase order records. Keep Incoming separate from the quantity customers can buy.