The Adjustment Location on the Main/Header portion of the Inventory Adjustment page is used for Classification purposes.
For example, if we use an Expense Account (Loss, Theft & Spoilage ) as the Adjustment Account, increases and decreases to the Inventory Value will be charged to this account.
Ideally, Adjustments should be done for the same location in the same transaction but the system is giving an option for some users who may want a separate Location to track postings against the adjustment account used.
Meanwhile, the Location field on the transaction line level is mandatory (if Multi Location Inventory feature is enabled) to identify where the increase or decrease in the Inventory Asset Account will be reported, and where the quantity adjusted will be take effect.
On the GL Impact of the Inventory Adjustment, the Inventory Asset Account is associated to a Location while the Adjustment Account (usually an Expense account) is associated to an Adjustment Location.
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