This is a good feature some of the industries can use to manage profitability of service or repairs. Especially industries where the service is resource and time intensive, it is good to track profitability of each service request.
This functionality is not integrated with GL in the form of journal entries yet. It just comes in the form of a report which can be run from the service request screen.
One of the limitation of this feature (as documented) is that this functionality only works with Standard Costing Method. Disappointed, I started tinkering to make this to work with average costing. Essentially there are two issues in how the cost was sourced.
First issue is that org_id (operating unit) was passed instead of organization_id (inventory organization) to get the cost. If the operating unit is also classified as inventory org and you define cost for the item then there is no issue. But it is hardly true in real world (operating unit also classified as Inventory organization).
Second one is (not essentially a bug), costing method is not passed to the cst_cost_api to get the cost. When you do not pass this API simply assumes standard costing method. My argument is, if we know the organization to get the cost for the item, how hard it is to get the costing method and pass it to this API?
Once I fixed these two in the cs_cost_details_pvt (of course it is standard code), it simply works.
We just need to make sure to update the cost of these non-ttransactable items using average cost update process.
You can see the presentation here.
