Cycle count approval does not consider reservation quantity

R12.2.11

For an item, there are 10 on-hand quantity. 6 is reserved against WOs, available to transact and available to reserve quantity is 4. When cycle count is run in that subinventory, the system quantity shows as 4. And after user enters quantity 10 as the count then system goes for approval for 6 quantity. Is this a seeded functionality?

Will 6 quantity go for adjustment? If yes, then there will be a system quantity discrepancy.