R12 Distributed Pre-approved batch query

Hi,

I have a client who is querying why an item created via a pre-approved batch that has since been transferred to another project has not been reversed when the original pre-app batch is reversed.  I suspect the reason is that expenditure batch reversal ignores transactions that have already been moved, as they’ve effectively been reversed as part of the transfer to another project. 

Client is using R12, I've tested in 11i and both give the same outcome.

Can you confirm that my reasoning is correct?

 

Many Thanks

Suzanne