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E1: 43: P4312 - ST/OT - Receipt Incorrectly Calculates Purchase Price Variance (PPV) for the Item With Potency Different Than Standard Potency Set Up in Item Branch Plant (Doc ID 2863078.1)

Last updated on APRIL 14, 2022

Applies to:

JD Edwards EnterpriseOne Sales Order Management - Version 9.2 and later
Information in this document applies to any platform.

Symptoms

The cost in OT side is not being calculated accordingly at the receipt time for transfer (ST/OT) order where; the lot being received in OT side has potency different than the potency previously setup in item branch. This causes the OT Purchase Price Variance booked incorrectly in the cardex for the receipt transaction when in fact; the costs in sales should be kept as the same for the purchasing.

Setup:

  1. P4101 – Create item master for item # 799158 (FG POTENCY ITEM) - See that customer has Inventory and Sales Cost Level set to value “2”, Item/Branch Only
  2. Item Master - Additional System Info – Grade and Potency TAB – Standard Potency 25.00
  3. P41026 – Create a new Item Branch (30) for Item # 799158 (FG POTENCY Item)
  4. Additional System Info – Grade and Potency TAB – Standard Potency 25.00
  5. P41026 – Create a new Item Branch (10) for Item # 799158 (FG POTENCY Item)
  6. Additional System Info – Grade and Potency TAB – Standard Potency 25.00
  7. Item unit Of Measure (UoM) Conversion: 1 DR=40 KG, 1 KA=1 KG and 1 UN= 1 KG
  8. Manually create Lot # 20211215001 in B/P # 30 for Item FGPOTENCY - assigning Potency of 30%
  9. DO NOT create lot in B/P #10

Steps:

  1. P4210 ZJDE0007 - Create Transfer (ST/OT) order from B/P #30 to B/P #10 for Item 799158.  Use 1 KG as transaction quantity and UOM. ST at this time will be assigned a Unit Price of $10.00 with Extended Price = Qty *(Unit Price * (Default Potency/100) = 1*(10.00 * (25/100) = 2.50
  2. P4310 ZJDE0018 - OT at this time will be calculated a Unit Cost of $10.00 with Extended Price =Qty*(Unit Cost * (Default Potency/100) = 1 * (10.00 * (25/100) = 2.50.  No issue at this time
  3. P4205 - Ship Confirm the ST order by assigning Lot #20211215001
  4. P4210 – Check, at this time, the system will re-calculate the Extended Price = Qty * (Unit Price * Lot 20211215001 Potency/100) = 1*(10.00 *(30/100) = 3.00. This is the expected and correct amount
  5. P4312 ZJDEB0002 - Receive the OT order into B/P #10, using Lot 20211215001, manually populate Lot Potency to 30%. When clicking into green check mark to save, the following message is displayed. So, user clears the amount the Amount field and try again to save it. At this time, the hard red error is cleared and only the warning as the location will be created on the fly. Click Ok again and receipt is done
  6. P4111 – Cardex - See the PPV created in Cardex entries which was not expected
    $ - 3.00 (659/ST) which is for sales recalculated at ship confirmation
    $   3.00 (564230/OV) which is for the recalculated PO Receipt
    $ - 0.50 (564230/OV) – PPV

 

Changes

 

Cause

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In this Document
Symptoms
Changes
Cause
Solution
References


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