Cost Allocation Factor less than 1 on Formula

 Hi All,

I have a business case, where we have an Item that is lets say A Grade and needs to be downgraded to B Grade and in doing so the cost of the Item needs to be reduced by a factor lets say 80%.

Meaning, that the B Grade item is 80% of the cost of the A Grade item and needs to be tracked separately in Inventory so needs a seperate item code. 

I am able to create a Formula that takes 1 Unit of A Grade Item as Ingredient and produces 1 Unit of B grade item and has a cost allocation factor of 0.8 (less than 1) so it should get 80% of the Cost of the Material which is the A Grade item and no Routing. But when I run the Actual Cost Process, I see that the B Grade item gets the same cost as the A Grade item.