Quantity Not Adjusted after Cancelling InterUnit Transfer

Here's the issue:

After an InterUnit Transfer was entered on 6/5 (BR800 031-IBU Shipmt), we found that the BR019 022-IBUReceipt did not process.  After researching, we found that the “Flag Items for Auto-Putaway” box had not been selected in Interunit Transfers Accounting.  We selected the box and Inventory User tried to push the transaction thru, but it wouldn’t work.  He later used the Cancel InterUnit Transfers option (we’ve never used before) on 6/19/15 and the costing lines offset the original BR800 031-IBU Shipmt – which seemed ok since that was all that had processed.

Our Accounting Staff didn’t notice until today that the