300 transaction group is hitting source GL BU expense account for IUT transfers

Hi All,

We are using the PeopleSoft application version 9.2 and facing issue with 300 transaction group accounting entries related to IUT transfers.

Cost Accounting entries of IUTs(InterUnit Transfer) is creating the 300 transaction group for the expense amount which comes as a difference between actual and transfer cost. This expense amount is hitting the source GL BU accounts as per the PeopleSoft CM design. But as per accounting rules it should hit the destination GL BU accounts.

So, we want to understand functionality wise why this expense is hitting the source GL BU account under 300 transaction group and why not passing this expense amount to destination GL BU account?