Cross posted from Manufacturing: For the ownership transfer transaction, how would you handle in NS the receiving of this for short shipments? We can’t modify the OT in NS and, if we receive it short, there will be a balance left in the variance account.

We have the same issue. We had to receive the full quantities in the Item Receipt then create an Inventory Adjustment to bring down the quantities and use a COGS/Expense/Other Expense account as the Adjustment Account. I hope there's a better way to do it.

Thank you @Luis for the response. I wish there was a way to close the OT after the short receipt causing the variance to back-flush.

I had this same issue with a client When you use the ownership transfer it locks down the inbound shipment So we scrapped the ownership transfer Instead they will create separate journals each month to recognise the stock on water