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Production order revaluation MFN1 is incorrectly considering exchange rate type M instead of P

Hi CO Gurus

I am writing this after researching on this issue. We are running tcode MFN1. System is considering exchange rate type M, while in KP26 it considers exchange rate type P.

We want exchange rate type P to be used for currency conversion between CO Area (INR) & Object currency (LKR). But system uses M in KSII & MFN1.

In KSII setting, I kept checkbox "Iterate amounts independently". Still no change in system behaviour.

Can you please suggest how system can pick exchange rate type P in MFN1 & KSII ?

Thanks

Kapil

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