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How Transfers from Amazon AWD to FBA Work and How Luminous Tracks Cost Layers

Heidi Hatch avatar
Written by Heidi Hatch
Updated over a month ago

Overview
Luminous supports automatic creation of transfers from Amazon AWD (Amazon Warehousing and Distribution) to FBA (Fulfilled by Amazon) to streamline inventory movement. This article explains how these transfers function once enabled and how cost layers are maintained across locations.


How AWD to FBA Transfers Work

  1. Automatic Transfer Creation
    Once AWD to FBA transfers are enabled for an account, Luminous will automatically create transfers based on inbound shipments from AWD to FBA. Transfers are identified and matched based on the address associated with the AWD warehouse in the settings.

  2. Initial Manual Reconciliation
    To begin the automation process, at least one transfer must be reconciled manually to establish the AWD address. Once this is done, Luminous will remember the address and begin creating transfers automatically.

  3. Nightly Job
    Each night, Luminous scans for new inbound shipments with a destination of FBA and a source address that matches any known AWD addresses. If a match is found, a transfer is automatically created.

  4. Expanding AWD Address Recognition
    If Amazon uses a new AWD location (i.e., a new source address), it will not be auto-matched until a manual reconciliation is done once. This helps Luminous learn and remember the new address as a valid AWD location.


How Luminous Tracks Cost Layers

  • Cost Layer Retention
    When inventory is transferred from AWD to FBA, Luminous retains the cost layer from AWD. This means the unit cost at FBA will be the same as it was at AWD.

  • No Additional Transfer Cost
    Because transfers are created automatically, there is no option to add additional landed costs during the transfer. All costs incurred during the AWD to FBA move are treated as warehouse fees and should be accounted for in the P&L, not as part of landed cost.

  • Landed Cost Consistency
    All landed costs calculated at AWD are preserved when the inventory is moved to FBA, ensuring consistent cost-of-goods-sold (COGS) calculations.


Tips and Considerations

  • Make sure an AWD warehouse is configured with the correct address in the account setup.

  • Perform at least one manual reconciliation per new AWD address to ensure it is recognized going forward.

  • AWD to FBA automation currently only supports AWD as the source and FBA as the destination.


FAQs

Q: What if I have multiple AWD locations?
A: Only one address is used initially, but additional locations are learned through manual reconciliation.

Q: Can I add transfer costs for AWD to FBA moves?
A: No. These are handled as part of warehouse fees in the P&L and not through Luminous transfers.

Q: How frequently are transfers created?
A: Transfers are created once nightly based on newly recognized inbounds from AWD to FBA.


Need Help?
For further assistance, contact the support team via Intercom.


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