Question

A stock transfer is used to move 400 t-shirts from Plant A to Plant B in the same company code. What is the change in value of inventory of t-shirts in the company code? Use the following data for this question. The data represents the status before goods issue. Plant A: Unrestricted: 3000, MAP 3.54 Plant B: Unrestricted: 500, MAP 3.75

Answer 1

There is no change in the inventory value of t-shirts in the company code with the 400 t-shirts transferred from Plant A to Plant B.

The value of t-shirts inventory in the company code would have changed if the transfer happened from Plant A or Plant B to a customer.

Thus, there is usually no change in the value of inventory in a company when the inventory transfer occurs within the company and not with customers.

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