Transit Time

Define transit durations for partner inventory by specifying source, destination, usage type, and duration. Transit Time records set expected movement between locations. If no specific Transit Time exists, the Account Lead Time of type Transit is used as the default. Transit Time impacts price protection, inventory reconciliation, manual adjustments, and end-customer returns, ensuring accurate inventory tracking, claim calculations, and financial traceability. It builds on the existing Channel Inventory functionality to track partner inventory more effectively.

Required Editions

Available in: Enterprise, Professional, and Unlimited Editions with the Channel Revenue Management add on

Note Transit Time is optional and can be configured to track partner inventory movement, either between locations or by partner account, with the option to include estimated timelines.

Transit Time Applications

Application Area	In-Transit inventory Impact
Price Protection	Enable Price Protection to include in-transit inventory by setting the In Transit Quantity Applicable checkbox in Rebate Type and Is Payable checkbox in Price Protection Term. The eligible quantity automatically reflects in-transit amounts, and if a price changes mid-transit, a new child bucket is created during claim generation to ensure financial accuracy. In-transit quantities are considered at all stages, from simulation to final claim generation. Clone the Ready_to_Use_CalcClaimAmount expression set template, activate it, and attach it to the Program Rebate Type. After DPE execution, run the Update Product Pricing for Price Protection flow to calculate pricing differences and set the status to Ready for Claim. When the status is Ready for Claim, generate the rebate claim and the PPE status updates to Complete.
Inventory Reconciliation	Inventory Reconciliation includes the Total In Transit Quantity field, calculated by DPEs using Transit Time and Account Lead Time definitions. Partner Inventory Item Reconciliation records can reference in-transit ledgers, enabling more accurate reporting.
Manual Adjustments	Manual adjustments can move in-transit inventory between PUI records while retaining the original status of In Transit and the available date. Traceability records are updated automatically, ensuring accurate tracking of all manual inventory moves. To manually update a ledger from In-Transit to Approved, cancel the current ledger and create a new ledger using a manual adjustment. Set the correct available date in the new ledger.
End-Customer Returns	Prevent incorrect credits against inventory still in transit. Validation subtracts in-transit inventory from total stock automatically to determine truly available inventory before allowing a return.

Example A manufacturer sets a 3-day estimated transit time for smartphone shipments from a warehouse to a partner store. When 100 units ship on September 22, they are flagged as In-Transit with an availability date of September 25. The system reflects these units in reconciliation, applies price protection correctly if prices change mid-transit, allows manual adjustments without altering the original availability, and prevents returns until the inventory is approved. Transit time ensures accurate handling across reconciliation, price protection, manual adjustments, and returns from shipment to final availability.

Order of Transit and Lead Time Application

When a transaction journal is processed, records are applied in the following priority:

Transit Time: If both source and destination locations match, the corresponding Transit Time record applies.
Account Lead Time: If no Transit Time record applies, an Account Lead Time record of type Transit is used based on the Account.
Default: If neither exists, inventory is considered immediately available with the partner, and ledgers are created in an Approved state.

Transit Time and Account Lead Time determine whether ledgers are In-Transit or Approved, forming the basis for price protection, reconciliation, manual adjustments, and returns.

Assumptions and Limitations

Destination Locations on a transaction journal require an account that matches the TJ account. There’s no out-of-the-box validation, so mismatched accounts can cause processing issues.
Accounts on source and destination Locations aren't validated.
Account Lead Time matching considers only accounts where type is Transit.
Inventory without matching Transit Time or Account Lead Time is immediately available and created in Approved state.
For users without ship and debit permissions, remove or update specific nodes in the DPE definition before running Price Protection.
Transit and lead times can't be negative. Duplicate Transit Time or Account Lead Time records for the same source or destination or account aren't allowed.

Note To apply in-transit inventory in Price Protection, create related records in Rebate Program, Rebate Program Member, and Program Rebate Type. Ensure In Transit Quantity Applicable checkbox is selected in the Rebate Type record and the Is Payable checkbox is selected in the Price Protection Term record. Integration users need PSLs for Rebate Management, Channel Inventory, and Price Protection.

Set Up Transit Time
Define expected transit durations for partner inventory between locations, link partner accounts to locations, and assign default lead times at the account level. The configuration enables accurate calculation of partner inventory availability, supports reconciliation, and provides visibility into claims processing.
DPE Execution Sequence for In-Transit Inventory and Price Protection
Once Transit Time and Account Lead Time records are defined, execute the following DPEs in this order to ensure accurate handling of in-transit inventory, proper ledger status updates, and correct price protection calculations.
DPE Node Updates for Users Without Ship and Debit Permissions
For users without Ship and Debit permissions, remove or update the following DPE nodes to ensure accurate price protection processing.