Oracle Purchasing: Why 'Receiving Inspection' Accounting Class is hit for PO Receipt for 3-Way Inven

Hi,

We created an Approved Purchase Order with an Inventory Item where Destination Type = Inventory and the Item is to be Delivered to be a specific Asset Sub-Inventory.

At the Item Level, the Inspection Required Flag is Set to 'No' and

Match Type = 3-Way

At the PO level, the Receipt Routing option = 'Direct Delivery'

'Accrue on Receipt' Flag = Checked /Yes

At the Supplier - Receiving Options Level, the Receipt Routing is set to 'Direct Delivery'

Inspite of all the above, when the PO Receipt is created and the Item is received into the specific Asset Sub-Inventory and thereafter 'Create Accounting - Receiving' process is being run, the Accounting entry generated for the Receipt is as follows: