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The 'Inventory Adjustment Account' in the 'General Posting Set Up' is used for Inventory Adjustments eg Negative Adjustment where it is linked of a Cost of Goods Sold or Expense account (which is okay).
The problem happens with Stock Transfer Orders where an interim clearing account is also used (how BC works) in the journal based on what you select for 'Inventory Adjustment Account' e.g. Transfer Received form store 1 to store 2. This causes store 1 to show loss and store 2 to show a profit. Overall, it does not affect the company as it nets off in the Inventory Adjustment account but affects store profit due to different location dimension in and out.
Dr Inventory
Cr Inventory Adjustment (store 2 location dimension)
Dr Inventory in Transit
Cr Inventory Adjustment (store 1 location dimension)
Ideally, I can change the Inventory Adjustment account to a Balance Sheet account but positive and negative adjustments which I want to go to Cost of Sales will also go the balance sheet account.
If there is a way to link reasons codes to its own GL, this will fix my issue but there isn't.
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