Scenario 1: In PAC, if both shipping organization and receiving organization belongs to same PAC cost group.

Then it is ver similar to sub inventor transfers !ithin a given PAC cost group. "ecause, ou run PAC process at PAC cost group level. "oth organizations belongs to same PAC cost group and thus interorg transfers are processed li#e sub inventor transfers. Scenario $: If the shipping organization and receiving organization are different PAC cost groups, Sa , C%1 : &'%1 Shipping Cost %roup : Shipping &rganization C%$ : &'%$ 'eceiving Cost %roup : 'eceiving &rganization In Core PAC, Interorg receipt transactions in C%$ are costed at a( Previous PAC Period Item Cost of the Shipping Cost %roup C%1 if previous PAC period do not e)ist, then b( Perpetual Transaction Cost of the corresponding interorg shipment transaction of shipping organization &'%1 In Periodic Absorption Cost Processor *PACP( or Iterative Periodic Average Cost Processor *IPAC( Interorg receipt transactions in C%$ are costed at Periodic +eight Average Cost of the Shipping Cost %roup C%1 as of that moment. PACP or IPAC is a PAC costing method developed on top of core PAC to compute more accurate PAC item costs.