diff --git a/addons/stock/report/stock_forecasted.py b/addons/stock/report/stock_forecasted.py
index e75dc62718e..dab2705aa29 100644
--- a/addons/stock/report/stock_forecasted.py
+++ b/addons/stock/report/stock_forecasted.py
@@ -186,7 +186,7 @@ class StockForecasted(models.AbstractModel):
 
     def _get_report_lines(self, product_template_ids, product_ids, wh_location_ids, wh_stock_location, read=True):
 
-        def _get_out_move_reserved_data(out, ins, used_reserved_moves):
+        def _get_out_move_reserved_data(out, ins, used_reserved_moves, currents):
             reserved_out = 0
             linked_moves = self.env['stock.move'].browse(out._rollup_move_origs()).filtered(lambda m: m.id not in ins.ids)
             # the move to show when qty is reserved
@@ -203,6 +203,7 @@ class StockForecasted(models.AbstractModel):
                 # add to reserved line data
                 reserved_out += reserved
                 used_reserved_moves[move] += reserved
+                currents[(out.product_id.id, move.location_id.id)] -= reserved
                 if float_compare(reserved_out, out.product_qty, precision_rounding=move.product_id.uom_id.rounding) >= 0:
                     break
 
@@ -292,14 +293,16 @@ class StockForecasted(models.AbstractModel):
             # any sublocation qties will be added to the main stock location qty
             if location_id in wh_stock_sub_location_ids:
                 location_id = wh_stock_location.id
-            currents[(qty['product_id'][0], location_id)] += qty['quantity'] - qty['reserved_quantity']
+            currents[(qty['product_id'][0], location_id)] += qty['quantity']
         moves_data = {}
         for _, out_moves in outs_per_product.items():
             # to handle multiple out wtih same in (ex: same pick/pack for 2 outs)
             used_reserved_moves = defaultdict(float)
-            # for all out moves, check for linked moves and remove qty from current stock
+            # for all out moves, check for linked moves and count reserved quantity
+            for out in out_moves:
+                moves_data[out] = _get_out_move_reserved_data(out, ins, used_reserved_moves, currents)
+            # another loop to remove qty from current stock after reserved is counted for
             for out in out_moves:
-                moves_data[out] = _get_out_move_reserved_data(out, ins, used_reserved_moves)
                 data = _get_out_move_taken_from_stock_data(out, currents, moves_data[out])
                 moves_data[out].update(data)
         lines = []
diff --git a/addons/stock/tests/test_report.py b/addons/stock/tests/test_report.py
index fd525cc1dd7..01cca185b15 100644
--- a/addons/stock/tests/test_report.py
+++ b/addons/stock/tests/test_report.py
@@ -1227,6 +1227,39 @@ class TestReports(TestReportsCommon):
 
         self.assertEqual(all_delivery.move_ids.mapped("forecast_availability"), [3, 3, -3.0, -3.0])
 
+    def test_report_forecast_12_reserved_transit(self):
+        """ Tests the transit feature, in 2 step incoming shipment warehouse, create
+            incoming transfer, validate it, create outgoing transfer and check report to show
+            quantities needed are in transit
+        """
+        grp_multi_loc = self.env.ref('stock.group_stock_multi_locations')
+        grp_multi_routes = self.env.ref('stock.group_adv_location')
+        self.env.user.write({'groups_id': [(4, grp_multi_loc.id)]})
+        self.env.user.write({'groups_id': [(4, grp_multi_routes.id)]})
+        # Warehouse config.
+        warehouse = self.env.ref('stock.warehouse0')
+        warehouse.reception_steps = 'two_steps'
+        outgoing = Form(self.env['stock.picking'])
+        outgoing.picking_type_id = self.picking_type_out
+        with outgoing.move_ids_without_package.new() as move:
+            move.product_id = self.product
+            move.product_uom_qty = 2
+        outgoing = outgoing.save()
+        outgoing.action_confirm()
+        incoming = Form(self.env['stock.picking'])
+        incoming.picking_type_id = self.picking_type_in
+        with incoming.move_ids_without_package.new() as move:
+            move.product_id = self.product
+            move.product_uom_qty = 2
+        incoming = incoming.save()
+        incoming.action_confirm()
+        incoming.action_set_quantities_to_reservation()
+        incoming.button_validate()
+        _, _, lines = self.get_report_forecast(product_template_ids=self.product_template.ids)
+        self.assertEqual(len(lines), 1)
+        self.assertEqual(bool(lines[0]['move_out']), True)
+        self.assertEqual(lines[0]['in_transit'], True)
+
     def test_report_reception_1_one_receipt(self):
         """ Create 2 deliveries and 1 receipt where some of the products being received
         can be reserved for the deliveries. Check that the reception report correctly