How Profit in Inventory is eliminated in Transfer Order

Summary:

We are transferring an Item X between Inventory Org A and Org B where both belong to LE1 and LE2 respectively. Standard cost of Item is 100$ while transfer price is 120$.

Now when the item is received in Org B through a transfer order and PII is recorded. How does this PII will get eliminated?

Expectation is External Sales order shipment to Customer in Org B should eliminate this PII. How oracle handles this scenario? What is the accounting entries that gets generated? Is it done automatically or is there a standard way to achieve this?

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