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Transfer order cost issue after adjustments - D365

Hi Group,

We have a problem with Transfer order cost issue after adjustments.

Scenario:
Create Purchase order with batch item –> Receipt -> Invoice (for example for this month - 07.2023)
Transfer order – Sheep from one warehouse to another the whole quantity from the PO in the same month (07.2023)
Closing – in the same month (07.2023)
On-hand adjustment for the item.
Transfer order –> receipt the transfer order in the new month (08.2023)
Add Charges in the invoice PO thru the invoice journal
Recalculation and closing (08.2023)
Problem:
The problem is once you have this type of on-hand adjustment the cost of the batch of the financial voucher adjusted is not distributed correctly after the transfer order created. Non transferred from the adjusted batch cost to a current on-hand availability cost.
We expect that after standard transfer order performed along with the moved quantities to have also the correct cost amount per our batches (lots).
After performing Inventory recalculation i.e. Inventory Closing procedures the adjusted cost affects only the transactions before transfer order created

We have managed to simulate this issue in Contoso version 10.0.33 and 10.0.34

In one of our scenarios we have Cost amount for the Purchase order 1200 USD but we received in the TRO only 1100 USD.
The on-hand adjustment from 100 has been transferred but the additional cost from the PO was not.
So instead of receiving 100 Ea for 1200 USD we have received 100 Ea for 1100 USD which is not correct, and we are trying to understand why. (attached picture with example)

The same can be reproduced between two months or in one month.

Is anyone have a idea what can be the reason for this problem with the cost of the batch after the adjustment?
Is it by design or there is parameter which could help ?
Thank you in advance for your help.

Best Regards,
Dimitar

There could be several reasons why the cost may change after adding charges in the invoice purchase order through the invoice journal cost in D365 Finance and Operations. Some common reasons include:

1. Additional charges: When adding charges to the invoice, these costs are considered as additional expenses that may impact the overall cost of the purchase order.
2. Freight costs: If the purchase order includes transportation or shipping charges, these costs can affect the total cost of the invoice once added.
3. Custom duties or taxes: If there are any custom duties or taxes associated with the purchase order, they can impact the overall cost when included in the invoice.
4. Discounts or rebates: If there are any discounts or rebates applicable to the purchase order, they can change the cost in the invoice.
5. Currency fluctuations: If the invoice includes charges in a different currency, fluctuations in exchange rates can affect the cost when converted to the base currency.
6. Adjustments or corrections: Sometimes, adjustments or corrections made during the invoice processing can impact the cost displayed in the invoice.

It's important to note that the specific reason for the cost change may vary depending on the configuration and setup of your D365 Finance and Operations system, as well as any specific business rules or policies implemented by your organization.

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