Hello Krish,
But this is as per standard SAP system design if you use the special procurement key for stock transfer it will consider cost form production at the associate plant.
The stock transfer process is recognized because the component has the same material number as the produced material (from the cost estimate header), but a different plant is specified.
Did you try by removing the special procurement key?
Did you check the KBA 2161727?
Costs from production Plant 2000 (Cost Roll-Up)
The system determines the price for material A in plant 1000 from the plant 2000. Due to the stock transfer process the material is calculated in plant 2000 and these costs are rolled up to plant 1000.
Procurement Price in Plant 1000
The procurement price is first determined by the user-exit EXIT_SAPLCK21_001 (Enhancement 'COPCP001'). If no price is set by the user-exit then system takes the price determined by the valuation variant from the receiving plant 1000 (while the plant shown in the itemization is still the manufacturing plant 2000 to indicate the stock transfer process.
Or use BAdI MAT_SELECTION_CK method ON_MATERIAL_SELECTION for costing and exculde the stock transfer material.
Best Regards,
R.Brahmnakar