What's the difference between inventory and expense destination transfer orders?

Expense destination transfer orders transfer material from an inventory warehouse location directly to the buyer's location for immediate usage. With expense destination transfers, there's no put away transaction in inventory since the item is expensed, and the destination inventory isn't incremented. Returns aren't allowed, and serial and lot numbers aren't tracked in receiving.

Inventory destination transfer orders require movement to a destination inventory warehouse location. With inventory destination transfers, you have a shipment in the source organization that decrements the source location's inventory, and a put away transaction in the destination organization that increments the destination location's inventory.