Different Standard Cost by Location-- Transfer Material

SCR

I have done the following
a) create new item with Costing Method as "Standard" and Cost = $10.00
b) setup SKU for "Blue" location & Cost = $12.00, and for "Silver" location & Cost = $15.00
c) Receive & Invoice purchase order in both location. System creates receipt transaction at $12.00 in "Blue" location and @ $15.00 in "Silver" location.
Result is same as expected.
d) Create Transfer Order to transfer 2 units from location Blue to Silver.
e) system created the transfer order shipment transaction from "Blue" location @ $12.00
Result is same as expected.
f) systen created the transfer order receipt transaction into "Silver" location @ $12.00.
This is not expected results
I expect system to create receipt transaction @ $ 15.00 and create $3.00 variance because standard cost in the "Silver" location is $15.00.

Question 1:
Why is the system creating the transaction in the step f) based on the cost of original receipt?
Question 2:
What is the logic for this?
Question 3:
What is your suggestion if we want to keep different standard cost for each location?
Is it adviciable to keep different standard cost by location using SKU?

Thanks
SCR

Andwian

SCR wrote:

Question 1:
Why is the system creating the transaction in the step f) based on the cost of original receipt?

This is logical. You just move the physical of the item. The cost is simply the same.

SCR wrote:

Question 2:
What is the logic for this?

Wherever you put the item, the cost is still the cost of purchase it, right?

SCR wrote:

Question 3:
What is your suggestion if we want to keep different standard cost for each location?
Is it adviciable to keep different standard cost by location using SKU?

Why do you want it is behave like that? What is your logic behind?
The workaround is to sell it to the dummy customer, and then buy it from the dummy vendor.