Transfer Price - Item cost basis & transaction Cost Basis under Accounting Transfer Price

Summary:

Transfer Price - Item cost basis & transaction Cost Basis

We would like to know how the transfer Pricing behaves when we select the Item Cost Basis or Transaction cost Basis in the Accounting transfer Price under the Mange Supply chain financial Orchestration transfer Pricing rules.

We would like to know:

1. How the Transfer Price gets populated on the Transfer order moving across business units based on selecting the radio buttons.

Please explain with an example.

For Both cases we have tried, and it is picking average cost and there is no impact in Transfer Price and it always picks average cost.