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Inventory write off account is not getting triggered in LCM flow

Summary:

Inventory write off account is not getting triggered in LCM flow in case of no on hand.

Content (please ensure you mask any confidential information):

Hi,

We have standard flow of LCM: Purchase Requisition > Purchase Order > Trade Operation with estimates > Receiving > Invoice > Actuals on Trade operation.

After receiving, if the material is issue out and we are creating Invoice. We expected that Inventory write off will get triggered, but currently if there is no hand system triggers Inventory valuation under Acquisition cost adjustment Event.

Is there any setup we are missing in this case? or this is expected behavior.

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