Periodic average costing inter org. transactions costing

Summary:

Inter organization transfer transactions are being costed at Periodic Average Cost Opening Cost Adjustment. If the unit cost is higher then the prior period cost how is the difference is the cost adjusted.

Content (please ensure you mask any confidential information):

Cost Method : Periodic average

Valuation structure : Cost Org, Inventory Org

Our requirement is to track the cost of inventory at inventory org level. An item is manufactured in one org and then inter org transfer to the other org. When doing the interorg transfer the transaction is costed at prior period average cost, how is the difference between the prior period cost and the current period unit cost treated.