Transfer Price in Transfer Order is higher than the average cost of source organization

Summary:

Transfer Price in Transfer Order is higher than the average cost of source organization

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Hi,

We have a scenario where we create transfer orders to move stocks between 2 inventory orgs under the same BU. For this purpose, storekeeper will create a transfer order using the Manage Item Quantities screen. In that screen, they can only put the quantity and not a price. Also, shipping costs are not defined and in the shipment line, the shipping cost is 0.

But, when we inquire the transfer order, we have noticed that transfer price is not the same as the average cost of the source org. Due to this, there are cost adjustment entries generated in the Cost Accounting related to this transfer order pick transaction.