PPV while Inter-Org Transfer transaction for Standard Cost Organization

Hi,

After creating new inventory organization (SWO) there has been inter org transactions entered without updating the standard cost. This has created Debit entry for purchase price variance (131206)

Later from standard cost update WIP account has been credited (131401)

Inter Org receivables before Standard cost update (item cost =0)

DR Purchase price variance or rate variance XXXX

  CR Inter-org payables XXXX  

Inter Org receivables after Standard Cost update 

DR Inventory XXXX

  CR Inter Org Payables XXXX

Standard cost update

           DR Inventory XXXX

CR WIP XXXX

** Could someone explain the above scenario