fix(stock): keep the source warehouse qty on purchase receipts only

The stock ledger of a Purchase Invoice that updates stock is built by the same
controller, but its GL entries have no accounting for rejected material at all.
Taking the rejected qty out of the in-transit warehouse there would move stock
that the invoice never books, so the two ledgers would disagree.

erpnext/controllers/buying_controller.py

@@ -754,6 +754,20 @@ class BuyingController(SubcontractingController):
 					)
 				)
 
+	def is_internal_receipt(self) -> bool:
+		return self.doctype == "Purchase Receipt" and self.is_internal_transfer()
+
+	def get_source_warehouse_qty(self, row, accepted_qty):
+		if not (self.is_internal_receipt() and flt(row.rejected_qty)):
+			return accepted_qty
+
+		if row.get("serial_and_batch_bundle") or row.get("rejected_serial_and_batch_bundle"):
+			return accepted_qty
+
+		rejected_qty = flt(flt(row.rejected_qty) * flt(row.conversion_factor), row.precision("stock_qty"))
+
+		return flt(accepted_qty + rejected_qty, row.precision("stock_qty"))
+
 	def update_stock_ledger(self, allow_negative_stock=False, via_landed_cost_voucher=False):
 		self.update_ordered_and_reserved_qty()
 
@@ -766,6 +780,7 @@ class BuyingController(SubcontractingController):
 
 			if d.warehouse:
 				pr_qty = flt(flt(d.qty) * flt(d.conversion_factor), d.precision("stock_qty"))
+				source_qty = self.get_source_warehouse_qty(d, pr_qty)
 
 				if pr_qty:
 					if d.from_warehouse and (
@@ -783,7 +798,7 @@ class BuyingController(SubcontractingController):
 						from_warehouse_sle = self.get_sl_entries(
 							d,
 							{
-								"actual_qty": -1 * pr_qty,
+								"actual_qty": -1 * source_qty,
 								"warehouse": d.from_warehouse,
 								"outgoing_rate": d.rate,
 								"recalculate_rate": 1,
@@ -856,7 +871,7 @@ class BuyingController(SubcontractingController):
 						from_warehouse_sle = self.get_sl_entries(
 							d,
 							{
-								"actual_qty": -1 * pr_qty,
+								"actual_qty": -1 * source_qty,
 								"warehouse": d.from_warehouse,
 								"recalculate_rate": 1,
 								"serial_and_batch_bundle": (

erpnext/stock/doctype/purchase_receipt/services/gl_composer.py

@@ -104,8 +104,10 @@ class PurchaseReceiptGLComposer(BaseStockGLComposer):
 				outgoing_amount = abs(get_stock_value_difference(doc.name, item.name, item.from_warehouse))
 				credit_amount = outgoing_amount
 
-			if item.get("rejected_qty") and frappe.db.get_single_value(
-				"Buying Settings", "set_valuation_rate_for_rejected_materials"
+			if (
+				item.get("rejected_qty")
+				and not doc.is_internal_transfer()
+				and frappe.db.get_single_value("Buying Settings", "set_valuation_rate_for_rejected_materials")
 			):
 				outgoing_amount += get_stock_value_difference(doc.name, item.name, item.rejected_warehouse)
 				credit_amount = outgoing_amount
@@ -257,9 +259,7 @@ class PurchaseReceiptGLComposer(BaseStockGLComposer):
 				valuation_amount_as_per_doc - flt(stock_value_diff), item.precision("base_net_amount")
 			)
 
-			if item.get("rejected_qty") and frappe.db.get_single_value(
-				"Buying Settings", "set_valuation_rate_for_rejected_materials"
-			):
+			if item.get("rejected_qty") and self.is_rejected_material_valued():
 				rejected_item_cost = get_stock_value_difference(doc.name, item.name, item.rejected_warehouse)
 				divisional_loss -= rejected_item_cost
 
@@ -356,9 +356,7 @@ class PurchaseReceiptGLComposer(BaseStockGLComposer):
 			if d.is_fixed_asset and d.landed_cost_voucher_amount:
 				doc.update_assets(d, d.valuation_rate)
 
-			if d.rejected_qty and frappe.db.get_single_value(
-				"Buying Settings", "set_valuation_rate_for_rejected_materials"
-			):
+			if d.rejected_qty and self.is_rejected_material_valued():
 				stock_asset_rbnb = (
 					doc.get_company_default("asset_received_but_not_billed")
 					if d.is_fixed_asset
@@ -380,6 +378,16 @@ class PurchaseReceiptGLComposer(BaseStockGLComposer):
 				+ "\n".join(warehouse_with_no_account)
 			)
 
+	def is_rejected_material_valued(self) -> bool:
+		"""Rejected material carries stock value when Buying Settings asks for it, and always on an
+		internal transfer, where that value is credited out of the in-transit warehouse."""
+		if self.doc.is_internal_transfer():
+			return True
+
+		return bool(
+			frappe.db.get_single_value("Buying Settings", "set_valuation_rate_for_rejected_materials")
+		)
+
 	def get_divisional_loss_account(self, item, stock_asset_rbnb):
 		"""Account that absorbs the difference between the document value and the value actually
 		booked into stock. For a Standard Cost item this difference is a purchase price variance

erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py

@@ -2258,6 +2258,76 @@ class TestPurchaseReceipt(ERPNextTestSuite):
 
 		self.assertEqual(query[0].value, 0)
 
+	def test_internal_transfer_pr_rejected_qty_leaves_in_transit_warehouse(self):
+		"""Rejected material of an internal transfer leaves the in-transit warehouse along with the
+		accepted material, and is booked into the rejected warehouse."""
+		from erpnext.stock.doctype.delivery_note.mapper import make_inter_company_purchase_receipt
+		from erpnext.stock.doctype.delivery_note.test_delivery_note import create_delivery_note
+
+		prepare_data_for_internal_transfer()
+		customer = "_Test Internal Customer 2"
+		company = "_Test Company with perpetual inventory"
+
+		from_warehouse = create_warehouse("_Test Rejected Transfer From", company=company)
+		transit_warehouse = create_warehouse("_Test Rejected Transfer Transit", company=company)
+		to_warehouse = create_warehouse("_Test Rejected Transfer To", company=company)
+		rejected_warehouse = create_warehouse("_Test Rejected Transfer Rejected", company=company)
+
+		item_doc = create_item("Test Rejected Internal Transfer Item")
+
+		make_purchase_receipt(
+			item_code=item_doc.name,
+			company=company,
+			warehouse=from_warehouse,
+			qty=10,
+			rate=100,
+		)
+
+		dn = create_delivery_note(
+			item_code=item_doc.name,
+			company=company,
+			customer=customer,
+			cost_center="Main - TCP1",
+			expense_account="Cost of Goods Sold - TCP1",
+			qty=10,
+			rate=100,
+			warehouse=from_warehouse,
+			target_warehouse=transit_warehouse,
+		)
+
+		pr = make_inter_company_purchase_receipt(dn.name)
+		pr.items[0].warehouse = to_warehouse
+		pr.items[0].qty = 7
+		pr.items[0].rejected_qty = 3
+		pr.items[0].received_qty = 10
+		pr.items[0].rejected_warehouse = rejected_warehouse
+		pr.submit()
+
+		sl_entries = frappe.get_all(
+			"Stock Ledger Entry",
+			filters={"voucher_type": "Purchase Receipt", "voucher_no": pr.name, "is_cancelled": 0},
+			fields=["warehouse", "actual_qty", "stock_value_difference"],
+		)
+
+		stock_qty = {d.warehouse: d.actual_qty for d in sl_entries}
+		stock_value = {d.warehouse: d.stock_value_difference for d in sl_entries}
+
+		self.assertEqual(stock_qty[transit_warehouse], -10)
+		self.assertEqual(stock_qty[to_warehouse], 7)
+		self.assertEqual(stock_qty[rejected_warehouse], 3)
+
+		self.assertEqual(stock_value[transit_warehouse], -1000)
+		self.assertEqual(stock_value[to_warehouse], 700)
+		self.assertEqual(stock_value[rejected_warehouse], 300)
+
+		gl_entries = get_gl_entries("Purchase Receipt", pr.name, skip_cancelled=True)
+		booked_value = {d.account: flt(d.debit) - flt(d.credit) for d in gl_entries}
+
+		self.assertEqual(sum(booked_value.values()), 0)
+		self.assertEqual(booked_value[get_inventory_account(company, transit_warehouse)], -1000)
+		self.assertEqual(booked_value[get_inventory_account(company, to_warehouse)], 700)
+		self.assertEqual(booked_value[get_inventory_account(company, rejected_warehouse)], 300)
+
 	def test_internal_transfer_pr_incoming_sle_anchored_to_dn_rate(self):
 		"""Internal-transfer PR's inward SLE must use DN.incoming_rate even when
 		PR.item.valuation_rate was wrong at submit, so divisional_loss does not