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Why does Item fulfillment make negative result in the income statement?

edited Mar 15, 2023 11:11AM in Ask A Guru 6 comments


I make an inventory transfer between 2 locations inside the same subsidiary; it affects the income statement negatively.

As I know, moving items between 2 locations should not affect the balance sheet because there are no sales,

In this case, you can see how it affects the balance sheet, the question of how this should be fixed and make it not give any positive or negative result.

Profit and loss (income statement)

Transfer order

it there is a transfer order, then the

GL impact of the item fulfilment

At the same time, there is no impact for item receipt

Technivision FZE

Amjad Kasem

Founder - General Manager



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