Transferring materials plant to plant without cost

My client is construction co. and They have several plants under one company. They transfer some materials after using to another plant. When the materials is in use at one plant they issue it to particular WBS element. After completion of the work they reserve the issue note and then transfer it to another plant (new site).

Now the problem is system transfer the materials to another plant with its original cost. Now project manager has objection that he get old used materials with the cost of new materials. It is affecting his project budget.

While preparing the budget project manager considers 50% cost of the used materials.

Now they want to transfer the such used materials at 50% cost or nil cost.

Can we do like this.

Atul Kulkarni