How to cost intercompany in-transit inventory

Hi-
I am not very famaliar with MM, I usually am FI.  I have a question about doing an intercompany transfer of inventory from one company code to another - US to Canada.  We are doing a STO that moves it.  When the transfer happens, I can see in my accounting documents that it is coming out of the US inventory.
It is going to a In Transit inventory location.  I was expecting to see the value of the inventory also being recorded on the receiving company but I don't see it until the receipt is made in Canada.
Have I missed something, why don't I see this inventory cost being picked up in the receiving company.  Thanks.

Hello,
From what i see you are using a 2 step STO process and hence its normal to see the inventory in trasit till the receiving plant does a GR.
However if your requirement is to see a accounting document immediately you should  use a 1 step STO process where the GI from the sending plant will create a GR in the receiving plant. This is recommended only if the plants are located close to each other. In your case as the transfer is across 2 countries, it is bes that you use the 2 step process.
Hope this clarifies.
Regards,
Jimmy Ambooken

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