Variance Issue: Intransit Inventory vs GL TB due to Intransit Revaluation Process (12.2.5)

We are experiencing a variance between the Intransit Inventory and the GL Trial Balance due to the Intransit Revaluation process. When the business runs this process, the following entry is transferred to the GL but does not appear in the In-Transit Inventory report, resulting in a variance between the GL Trial Balance and the In-Transit Inventory report:

Cost Update Adjustments - Dr
In-Transit Valuation - Cr
In some cases, the In-Transit Valuation is debited, and the Cost Update Adjustment is credited, which also contributes to the variance. It is an audit observation and impacting the month end closing. Kindly advise on how to resolve this issue.