Create a transfer adjustment if discrepancies are discovered when completing a transfer. For example:
an item is received that is not on the transfer
an item is on the transfer, but is not received
the quantity received does not match the quantity on the transfer
an item is damaged
you are returning items to the From-store, for any reason
Creating a transfer adjustment ensures that inventory quantities remain correct in all stores. If the To-store is set up to pay for transferred merchandise, a transfer adjustment is needed to ensure accurate invoicing.
For examples of transfer adjustments and an explanation of debits and credits, click here.