How Inventory Cost integrate with Project Actual Cost

Summary:

In our scenario, we had a PO for 100 units of an item with destination type Inventory. After processing through the FDC, the cost of this receipt was charged to the Project inventory, resulting in an actual cost of (+2,000) in the project.

 

Subsequently, we consumed 50 units of this item. The cost for these units was calculated using the Inventory Average Cost, resulting in an outflow of -50 units with a value of (-2,000) in the Project.

 

Up to this point, this behavior is expected, as the value difference arises because the Inventory Average Cost was higher than the unit price on the PO. However, we believe there should be an additional transaction line impacting the consumption of the 50 material units with a value of (+2,000).