Hi LukePGM,
You will need to get the location of the object that you are trying to pickup and factor that in. Take a look at the screenshots below to see how I did this. If you need to see more of my blueprint setup, please let me know and I’ll post it.
Make a variable that you can store the Other Item Location in and plug it into your pickup formula.
Get the other actor location off of the Line Trace and Hit Location, then set the variable.
I hope that helps,
TJ