Requisition Encumbrance Reversal is not happening for Direct InterOrg Transfer
Internal Requisitions were created in one Inventory Organization to source the item from another Inventory Organization using the Min-Max process. The Shipping method for this transfer of material between two Inventory Organizations is configured as Direct Inter-Org.
Moreover, since our environment uses US Federal Financials, the Requisition Encumbrance is created when Internal Requisition is Approved. Later, when the goods are received at the destination inventory, the encumbrance reversal was not happening. In particular, the Accounting for Requisition Encumbrance Reversal did not happen.
On further investigation, we found that there is no JLD for reversing requisition encumbrance in a Federal AAD. (Note: We found Requisition Encumbrance Reversal JLD in a Non Federal AAD)