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Material transfer note

A material transfer note records material moved directly between jobs, departments or stores locations. It preserves the audit trail and identifies which cost object should bear the cost. The accounting can credit the sending job and debit the receiving job without treating the movement as a new external purchase. Quantity, condition and valuation should remain consistent across both records to prevent omitted or double-counted inventory.

Worked example

Ten components costing $7 each move from job A to job B. Credit A and debit B $70 if that reflects the authorised reassignment.

Common mistake

Moving materials physically without updating the cost records can leave the wrong job charged even when total inventory appears correct.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA MA Direct September 2026–June 2027
FIA FMA Direct September 2026–June 2027