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This is a simple feature that is available in MYOB but not in xero.
It wouldnt be hard to implement - even by adding this into the adjust inventory section to allow to move multiple inventory items at once to offset each other.
Not rocket science!

This is especially important for small scale business with lateral inventory movements, i.e. between warehouses

Please add this feature! We are looking at changing to MOYB for this reason which is frustrating because moving across will be extremely time consuming.

We are a manufacturing company that makes large robotic tractors. Each tractor has sub parts such as the bonnet, front chassis, and rear chassis. But each sub part has hundreds of parts that are welded and machined together.

Right now owe can't properly track our inventory at all. We can track inventory into the business but not out because XERO requires every line item on the invoice in order to realise inventory stock has decreased.
As you can tell with thousands of parts an invoice that recorded every part would be pages long. All we want to give our customer is a clean easy to read invoice that can say 2 tractors, or 4 bonnets and 2 front chassis and this is exactly what we do. However, this does not allow us to record the decrease of inventory.

Secondly, having the ability to reserve inventory (inventory in-use) when allocated to a project would also be HIGHLY helpful. Rather than waiting till the end once a job is invoiced and the inventory count is decreased. That way owe can see what stock is already allocated for and how much more we need to order.

Zoho has this. Its called composite items. Cant believe Xero does not have this yet.

For each Task we can select a sub task to break down the task hours into the different actions to complete the task. e.g. Task = Installation, sub tasks = External and sub task = Internal. We can then see the total cost of the installation and break it down to external and internal for costing future works.

It would be really useful to be able to create subtasks under tasks as for some of our contracts staff will be carrying out the same task but charged under deifferent charge rates depending on their experience/qualifications, etc.

For example Joe Bloggs and Jenny Block carried out survey work but Joe is a surveyor and Jenny is a trainee so the rates will be charged to client differently.