What effect do inventory transfers have on locations?

When an inventory transfer occurs, it effectively decreases the inventory quantities at the "from" location while simultaneously increasing the inventory quantities at the "to" location. This reflects the physical movement of items in stock; as items are taken from one location to be sent to another, the database must accurately represent this change in stock levels.

In this context, the system tracks where inventory is located, so when items are moved from one location, the system needs to decrease the count at that location to maintain accurate inventory records, ensuring that you do not have a discrepancy between physical stock and inventory levels recorded in the system. This two-fold adjustment is crucial for inventory accuracy and effective inventory management within NetSuite.