Subsidy net on funding as Fund does not create credit memo in 12.2.10

Hello,

we are on 12.2.10 instance and using a subsidy which has been setup to net on funding as Fund. So we except a credit memo in AP when we fund the asset in OLFM.

When asset is funded , the subsidies funded get updated correctly but when Payable transfer programs are run no credit memo is generated for the subsidy amount.

We tried with both billable and non billable streams for subsidy setup and accounting method as net and amortize both but issue remains same.

Please advise.

Mohammad Asif