Default Cost Profile is not getting applied to new items

Summary

Default Cost Profile is not getting applied to new items

Content

I have defined the default cost profile with auto option for new item profile creation. But when I have define a new item, the default cost profile is not applied.

However, I am able to manually update the item cost profile.

Any pointers on why the default cost profile is not applied as soon as the item is created. I have verfied after the miscellaneous receipt as well, even after the transaction the default cost profile is not applied for the new items

Regards,
Ramesh