Hi all,
Let me share my 2 cents about this subject.
The answers I saw are correct but not 100% accurate. The real answer is "it depends". It depends on what you really want to do: do you care about inventory only? Or do you care about the financial stuff and costing? Do you use direct transfer? transit locations?
Let's consider this simple example to understand:
Two locations: LOC1 and LOC2.
You want to transfer ITEM from LOC1 to LOC2.
The average cost of ITEM in LOC1 is 20$ and you have 1 unit in LOC1.
The average cost of ITEM in LOC2 is 10$ and you have 1 unit in LOC2.
When you transfer ITEM from LOC1 to LOC2, the average cost in LOC2 will become 15$ (LOC2 contains 2 units / LOC1 contains 0 unit).
Now, if you decided to undo this transfer and you apply the suggested answers, you'll have the situation below:
LOC1 contains 1 unit with average cost of 15$
LOC2 contains 1 unit with average cost of 15$
You can see that you solved the inventory issue but you clearly missed the average cost on both locations. I'm not sure accounting team will be happy about that
My point is: I hope that you'll consider the full scope of the issue and do not focus on inventory only.
I believe that the best answer to similar issues "how to undo posted transfert order" is to use item journal to correct inventory (quantity) and to use revaluation journal to correct the cost.
