When closing out inventories from issue exceptions, which DMLSS transaction reflects an actual count less than the on-hand (O/H) balance?

The correct choice is IAL, which stands for Inventory Adjustment Line. This transaction is specifically used to process adjustments when the actual count of inventory items is found to be less than the on-hand balance. When conducting physical inventories, discrepancies can occur, and if the count reveals that the actual quantity on hand is lower than what is recorded in the inventory management system, an IAL transaction allows for the necessary adjustments to be made. This ensures that the inventory records accurately reflect the current stock levels, maintaining the integrity of the inventory system.

In contrast to the other transaction types, Inventory Adjustment is a broader term that includes any changes made to inventory and does not specifically indicate that the adjustment is due to a lower actual count. Receipt Adjustment typically applies to discrepancies found in received goods, not in stock on hand. Inventory Validation refers to verifying inventory counts and does not directly adjust quantities; it simply reassures that the system's records match the physical inventory. Therefore, IAL is the most suitable transaction for reflecting an actual count that is less than the reported on-hand balance.