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Good planning defines business success. However, when a planning gap occurs, the ability to utilize available substitute resources can become a safeguard against unwanted financial and reputation losses, especially if sales orders have been created and confirmed by the customers. In this article, we will discuss a business case in which a company needs to transfer quantities from one item to another substitute item, and how to avoid the pitfalls that come with this process, such as when item tracking and directed put-away and pick locations are used. Recently, one of our customers experienced a situation in which his sales person created multiple sales orders for item A. Later, the sales person discovered from the available inventory figures that he would not be able to cover sales order demand with item A. For whatever reason, the purchasing department was not able to replenish inventory of item A before the deadline. At the same time, the sales person noticed that the warehouse bins contained abundance of item B, which was a direct alternative to item A. Changing the item number on the sales lines would mean redoing hundreds of sales orders and recommunicating with the customers, so transferring of the quantities from item A to item B would be a time-saver. The company used lot item tracking for all of its items and the location was directed put-away and pick, so the question was how the quantity from item B could be transferred to item A with all corresponding lot number information so that the sales person did not have to redo hundreds of sales orders. In case you use directed put-away and pick locations as well as item tracking , the process of transferring quantities from item A to item B becomes significantly more complicated. In this article, we will share with you our knowledge on how to transfer item quantity under such conditions When such cases emerge, the accountants actually do practice transferring some quantity from one item to another but as long as they sit in the same G/L account. NOTE: This article describes only the transaction recording aspect of the process, but not communicating with the warehouse personnel regarding changing of the labels on the items. Standard reclassification journals do not cover the needs of this case, so they are not used.