Is there a behind the scenes way of transferring hours from one project/task to another project/task? I am unaware of any way besides having to re-open user time sheets and telling them to make the change to the project/task at that level.
I've gotten around this creating an Adjust Hours custom field on the project. I've been able to enter a negative number in this field to deduct hours off the project or add hours to a project due to timesheet errors. I include it in calculations in backlog reports and any reports containing % complete. I'd be interested to hear any other ideas because under strict audit policy we've not been allowed to change past time sheets for any closed months.
Unfortunately, as the records are locked with time entries, the only way possible is to reopen the timesheet and resubmit them. We can take this up as an idea and see if there can be any enhancements done to the process of doing so.