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Extra G/L entries in Transfer Order

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Posted on by EM-20030350-0

We use MMK currency as LCY and USD as ACY. Inv. Rounding Precision and Amount Rounding Precision for MMK is 0.01. Inv. Rounding Precision and Amount Rounding Precision for USD is 0.00001.
When we make Transfer Order, normally four G/L Entries should be posted. But now, additional four G/L entries are posted with Zero amount (LCY) and amount (ACY)in transaction no. 1534.
Likewise, only negative adjustment in item journal is posted to with additional 2 G/L transactions. Why?

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Dynamics 365 Business Central

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Sohail Ahmed 11,136 Super User 2025 Season 2 on at

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Maybe this will give you a useful lead.

In Business Central, extra G/L entries during a Transfer Order or Item Journal can occur due to:

🔍 Most Likely Causes:

Rounding Differences between LCY (MMK) and ACY (USD):

With different rounding precisions, BC may post zero-amount G/L entries to keep ledger balances accurate — especially if there's a currency conversion involved during transfers.

Inventory Posting Setup:

Check if you're using Inventory + Transfer accounts with automatic cost posting enabled — BC may generate extra balancing entries even if the amount is 0.

Expected Cost Posting:

When this is enabled in Inventory Setup, BC may post expected cost entries first and reverse them later with real costs — resulting in multiple lines, including zero-amount entries.

Automatic Cost Adjustment or Revaluation**:

If triggered in the background, BC may post G/L entries with zero values during transfer/shipment/receipt just to reflect a system-calculated adjustment.

✔ What You Can Check:

Transaction No. 1534 → Look at Entry Type and Source

Inventory Setup → Check expected cost, automatic cost adjustment

Currency Setup → Confirm your rounding settings aren’t causing system to post balancing entries

These extra entries are usually harmless but help maintain integrity between G/L and inventory subledgers.

Mark below checkbox to make this answer Verified if it helps you.

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Ramesh Kumar 7,527 Super User 2025 Season 2 on at

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Hi,

This could be for many reason. But I hope below link can help you

https://dynamicscommunities.com/community/groups/d365ugbc/forum/topic/posting-date-error-in-item-journal/?

Thanks

Ramesh

If this was helpful, please check the "Does this answer your question?" box and mark it as verified.

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Gerardo Rentería Ga... 25,213 Most Valuable Professional on at

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Hi, good day
I hope this can help you, and give you some hints.

Dynamics 365 Business Central – Walking through an Adjust Exchange Rates (revaluation) scenario in Business Central

Cost Components: Understanding the Entry Type Field in the Value Entries Page - Dynamics 365 Business Central Insights

Best Regards
Gerardo

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Mansi Soni 8,907 Super User 2025 Season 2 on at

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Hello,

The additional G/L entries with zero amounts (in both LCY and ACY) during the Transfer Order posting and Item Journal negative adjustment are likely due to Business Central's handling of expected costs, cost rounding, and dual currency precision. Since your LCY (MMK) has a rounding precision of 0.01 and your ACY (USD) has a much finer precision of 0.00001, small cost variances during inventory movements or expected cost postings may round down to zero, but the system still posts these entries to maintain transactional integrity and audit consistency.

In Transfer Orders, Business Central often posts expected costs initially and then reverses or adjusts them once actual costs are determined. If these costs match exactly or round off to zero, the reversal entries may appear with zero amounts. Similarly, in negative item adjustments, if previous expected costs or rounding corrections need to be offset, the system may generate additional zero-value entries.

These behaviors are influenced by settings like “Expected Cost Posting to G/L” and “Automatic Cost Posting” in Inventory Setup, as well as the costing method (like Average or FIFO). While these zero-value entries might seem unnecessary, they are part of the standard accounting logic to ensure full cost traceability and audit completeness.

Hope this answer will help you!

Regards,
Mansi Soni

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YUN ZHU 95,331 Super User 2025 Season 2 on at

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Hi, I'm not sure. Is Automatic Cost Adjustment enabled?
Try it after turning it off in the test company. If there is no problem, it is recommended to change it to adjust the cost once a month so that the relevant details are generated only once.

Hope this helps.

Thanks.

ZHU

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Valentin Castravet 31,340 Super User 2025 Season 2 on at

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From your screenshot it looks like the additional entries are simply rounding for the ACY. If you tie the transfer entries to the original inbound entries for this item you should be able to figure out why the system needs to post the rounding entries.

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/

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Jainam M. Kothari 15,631 Super User 2025 Season 2 on at

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Hello,

In Business Central, the additional zero-amount G/L entries during Transfer Orders and negative item journal adjustments are typically caused by the system's need to maintain balance in both the local currency (MMK) and additional currency (USD), especially given your rounding precision settings (0.01 for MMK and 0.00001 for USD). These entries often result from rounding differences or cost adjustments in multi-currency scenarios, and while they show zero amounts, they are system-generated to ensure accounting integrity.

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