I thought that this issue had been resolved, but...
 
We make a widget with a serial number 23456 and sell it out of our inventory location.  
 
Some years later it is returned for repair and it turns out to be too far gone. So, we decide to scrap it...
 
We open IN-C, enter the part number and location, then enter -1 for adjustment quantity. Up pops the serial number box, we hit F2, find the serial number and location on the list, select it, and FAIL.
 
The message says that the serial number has a quantity of zero on hand. Yes, our stock location has a quantity of zero on hand for that serial number, but the repair location has a quantity of 1.  
 
And, by the way, EPIC FAIL. The UOH for the item code has already been adjusted because the transaction has been completed, but I'm stuck in the serial number screen, unable to complete the transaction.  
 
So, when adjusting stock for any item that carries a serial number, I must use IN-K to adjust stock, then SC-A to adjust the serial number.
 
NOTE: I fully understand that IS Tech inherited the ugly mess that is mislabeled "traceability" in DBA/Evo. I feel your pain. We shall overcome.