Suggested by Sujoy Choudhury – Needs Votes
D 365 Supply Chain Management does not support cancellation of Transfer Orders. This leads to problems for many manufacturing, distribution and retail customers. In case of errors committed with wrong Shipments, a reverse Stock Transfer would need to be created and Shipped. It would be really convenient if the application could allow the Manager to cancel the Shipment with a reason code.
This becomes a compliance issue in countries like India and Brazil. With the advent of e-Waybill and e-Invoicing, the Stock Transfer would need to be 'Received' at the destination location before a reverse Stock Transfer can be created. All this has documentation and tax implications as Inter State Stock Transfers are liable to taxes and e-Way bill is mandatory for any Stock Transfer > Rs50000. This leads to unnecessary transactions in the system without any physical movement of goods. This would be seen as a compliance issue by the tax authorities.
to address the above challenge, we would need 'Cancellation of Stock Transfers' to be supported in the application.

Dear Sujoy Choudhury,
Could you please check and advise if below link describes the function you are looking for?
Canceling Transfer Orders in Dynamics 365 Finance and Operations (alithya.com)
Thank you,
Ban
Voted, It will be great to see this as standard as we did a recent development to reverse the TO either at line level and or TO level. Works great but will be better to have this as standard