Generate Purchase and Variance Transactions for Warehouse Transfers Option

This option is important when processing inventory transfers from one warehouse to another. Go to Inventory > Options > Warehouses tab to view or change this option as shown below:

If this option is turned OFF:

Only inventory general ledger asset transactions are created to identify the transfer within the inventory item's history. No cost-of-sales transactions are created. Review the Multiple Inventory Location Management > Using Multiple Locations > Transferring Inventory between Warehouses section for more details on the standard transactions.

If this option is turned On:

The purchase values will be debited to the purchase general ledger account for the new warehouse and credited to the G/L account for the From Warehouse. The offsetting inventory variance transactions will be created for each warehouse as well. Inventory general-ledger asset transactions are created no matter how this option is set. Review the Tracking Counts > Inventory Variance section for more details on the variance general ledger transactions.