Accounting Preference Fulfill Based on Commitment is set to "Limit to Committed"
a. Item A has Quantity On Hand and Quantity Available of 10 in Location A
b. Created Sales Order that has committed the above quantity of 10 for Item A in Location A
c. An Item Fulfillment for the above Sales Order has been created and in Status "Packed"
d. Create an Inventory Transfer at Transactions > Inventory > Transfer Inventory to transfer quantity of 10 of Item A from Location A to Location B
Reason: This is working as designed per Issue 238082. There is no check of the quantity on hand/quantity available before save of transactions like Inventory Transfer or Inventory Adjustment.
Result: The Inventory Transfer will be allowed resulting to negative quantity of 10 for Location A once the Item Fulfillment is Shipped.