If the transfer is in the same warehouse then there should be no financial impact and if that is what you want to happen then why would the parameter not be selected? See the whitepaper link which walks through postings with and without activation.
Check the two fields in the Transactions form to identify whether an InventTrans transaction is a non-financial transfer.
1. Click Inventory management > Inquiries > Transactions > Transactions.
2. Click the General tab in the Transactions form.
Field group, Transfer, with two fields :
Non-financial transfer
Transfer lot ID
When the Non-financial transfer check box is selected, the transaction is a non-financial transfer.
Note activating this field is not reversible so test to ensure it works the way you want.