How to reconcile expense valuation type transactions against asset specific natural account?

This is to share a critical case for seeking technical guidance regarding the reconciliation process of expense-related stock valuation records with trial balance report.

To be precise about the activity, the supply chain team performed the subinventory transfer process within of the inventory organizations, whereby a number of inventory items were mistakenly moved from the asset-type source subinventory into the expense-type destination subinventory.

The accounting entries generated are noted below,

At Source level,

Dr. Offset A/C (Principal) 1,000
Cr. Inventory Valuation A/C (Principal) 1,000

At Destination level,

Dr. Expense A/C (Principal) 1,000
Cr. Offset A/C (Principal) 1,000

As per our accounting setup, the same natural account of asset nature was affected in both of these journal entries which is relevant to increasing the on-hand inventory.