You have created the Material Cost Estimate for the material and it is picking the incorrect valuation method.
Reproducing the Issue
- Go to the Inventory Valuation work center.
- Choose the Material Cost Estimates view.
- Click Show All Cost Estimates.
- Select the material and click View.
- You will see the Valuation Method as Purchase List Price for the material.
The inventory cost was taken while calculating the cost estimate depends of the minimum order quantity mentioned in the purchase contract and the quantity mentioned in the Production Bill of material for one product. If the minimum order quantity is higher than the BoM quantity, the contract price is ignored. If the minimum order quantity is less or equal than the BoM quantity, the price of purchase contract is selected
System works as designed.
KBA , SRD-FIN-INV , Inventory , How To