Why doesn't Transfer Invoice Charges use the ERV expenditure type from PJM Project Parameters?

We are using project manufacturing. We have expenditure type MATERIAL for main inventory costs and expenditure type ERV for exchange rate variance. On the Project Parameters form, invoice transfer tab, the ERV expenditure type is set to ERV. The PJM Organization Parameters form, invoice transfer tab, has ERV flagged to transfer to PA and has expenditure type ERV.

When we generate an invoice with ERV, and run Transfer Invoice Charges, the ERV goes to Projects under Inventory with Accounts - Posted, which is as expected, but it uses the expenditure type MATERIAL. How can we get it to use the expenditure type ERV?