Return Transaction not generating cost variance despite of difference in currentcost & purchaseprice

Summary:

Perpetual Average Cost is being used. Return transaction not generating cost variance despite of difference in current price and purchase price

Content (please ensure you mask any confidential information):

PO price : 100$

LCM cost : -1 $

Avg cost post the above PO transaction and landing: 99.5$

Now, the Avg cost is been increased from 99.5 $ to 133$ from other PO receipt trxn.

RTV is performed and following are the entries observed.

Cost Area:

Inv: Cr : 133

Rec Ins : Dr : 133

Rec Acc :

1. Return to Supplier Event:
   
   Rec Ins : Cr: 100$ ( PO amount)

Acc : Cr 100 $

There is no cost variance entry.

2. Landed Cost Adjustment :

Rec Ins : Cr -1$ (LCM charge amount)