When Stock is transferred between warehouses with different Valuation rate the stock value gets updated automatically based on target location warehouse and stock adjustment entry is getting passed.
This is creating lot of issues in Accounting.
Consider the situation
Cube : 10qty @ Valuation rate 12
Cube : 10qty @ Valuation rate 10
When you transfer the stock from A to B
Warehouse A 2 qty is reduced @ Value 10 each
Warehouse B 2 qty is added @value 12 each
and adjustment entry will pass where
Stock adjustement will be credited with 2
and Stock in Hand will be debited by 2
which shouldnt happen.