How to load Periodic Average Cost on hand

HI,

I have in my perpetual cost standard cost and on-hand quantities. Those quantities were loaded using a miscellaneous receipts. I loaded the Initial PAC (Periodic Average Cost) for those same items belonging to the same org and legal entity.

My issue is for a given item, when i have a cost owned transaction in inventory, it disregards the Periodic Average Cost in the PAC report and show the transaction cost. See example below.

So, it looks like I should have loaded the on hand quantity in the Periodic Average Costing also, but I didnt. Is this the root cause of the issue? If it is, I dont know how to load the item quantity along with the Periodic Average Cost.