Looking for additional info of Receipt Cost Adjustments

Summary:

Looking for the logic when performing Costing Adjustments, for Actual Costing, and the differences in the journal entries created when the Receipt Cost Adjustment (RCA) is performed.

There is a difference between the unreferenced RMA Receipt Cost Adjustment and a referenced RMA Receipt Cost adjustment.

Content (please ensure you mask any confidential information):

When we perform an unreferenced RMA RCA - the debit goes to Inv Valuation and credit to Offset. We did not previously have a cost to adjust. The cost was zero as expected because the system uses the Unreferenced RMA Receipt Cost option set in the cost profile associated with the item cost profile. For Unreferenced RMAs we are using Existing Item Cost. The current item cost is unavailable so the item is costed at zero. This scenario makes sense.