Use a transfer for known movement
A transfer explains that stock intentionally moved from one business location to another.
Use an adjustment for a discrepancy
An adjustment explains a correction after physical stock differs from expected system stock.
Do not use adjustments to fake transfers
Subtracting in one location and adjusting in another destroys the movement trail.
Report both separately
Transfer history and adjustment history answer different operational questions.
Transfers preserve total company stock
A transfer changes location, not total owned quantity. Both the source and destination movement should be traceable.
Adjustments need a reason
Adjustments change the recorded quantity and should carry a reason such as damage, count difference or correction so repeated discrepancies can be investigated.
Every event should remain connected to the product, contact or transaction that created it. That is what lets ERP explain a number instead of only displaying it.