Use the Transfer Order Loss activity to record that an items or material has been lost or damaged during shipment of a transfer order line item. To back out or correct transactions, enter a negative Loss quantity.
In this hypothetical scenario, Warehouse A transfers to Warehouse B. Warehouse A ships to a Transit Location. The Transit Location is maintained at Warehouse B. When Warehouse B receives the item, it is moved from the Transit Location to a Stock Location within Warehouse B. When you perform a Transfer Order Loss transaction, the stock is removed from the Transit Location of the To Warehouse, in this example, Whse B.