Why So Many G/L Accounts for a Transfer Order?

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Posted on by JE-20081519-0

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Hi:

Below is a picture from Item Ledger Entries of a Transfer Order's "Transfer Shipment" Document Type.

Why are there four G/L accounts, instead of only two?

From an accounting standpoint, this simply doesn't appear accurate.

Is there a setup of some sort, for which this can be reviewed?

Thanks!

John

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Dynamics 365 Business Central

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Sagar Dangar, MCP 799 Super User 2025 Season 2 on at

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Hi,

You can check inventory posting setup>Inventory account for both locations(Transfer-from and transfer-to)

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Ramesh Kumar 7,529 Super User 2025 Season 2 on at

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Hi John,

I hope your doing well

NAV/Business Central uses Inventory Posting Setup and General Posting Setup to determine the G/L accounts for inventory movements.

Transfer Order setup includes In-Transit Location Code, which splits the inventory movement into:

Shipment (Location A → In-Transit)

Receipt (In-Transit → Location B)

Please check the entries are the posting group. You are seeing for both location

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

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YUN ZHU 95,729 Super User 2025 Season 2 on at

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As far as I know this is standard behavior. The value of the account passes through two locations, so it looks like there are four details.

You can check the progress of the transfer in Item Ledger Entries.

Hope this helps.

Thanks.

ZHU

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Andrés Arias 4,190 Super User 2025 Season 2 on at

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Hi John,
This has been the standard operation of Business central, it performs the movement for each incoming or outgoing product movement and its related accounting account.

If we go through a transit, we will have the incoming and outgoing movements.

If we activate the Direct Transit check, we will be able to see the 8 movements.

I hope I can help.

Andrés

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Mansi Soni 8,909 Super User 2025 Season 2 on at

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Hello,

If In-Transit Locations are used in the Transfer Order setup, Business Central posts the transfer in two steps: first reducing inventory from the From-Location and posting to an in-transit account during shipment, then receiving it into the To-Location.
This can lead to multiple G/L entries.

Settings in Inventory Setup, such as enabling "Automatic Cost Posting" and "Expected Cost Posting to G/L", also affect the number and type of G/L entries posted. Reviewing the Value Entries linked to the item can also provide insight into how costs are being broken down—whether as direct, indirect, or transfer costs.

To address this, you should review the Inventory Posting Setup matrix and General Posting Setup to verify whether the G/L accounts assigned are appropriate and align with their accounting practices.

Hope this will help you!

Regards,
Mansi Soni

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