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E1: 42: Incorrect Standard Cost Variance For Intercompany Multi-Currency Sales Order In The Cardex (P4111) With A Cost Override, Inventory Updated At Sales Update R42800 (Doc ID 2884852.1)

Last updated on NOVEMBER 03, 2023

Applies to:

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

Symptoms

Sales Update (R42800) writes a Standard Cost Variance for an incorrect amount in the Item Ledger (F4111) for a Sales Intercompany Order with the following setup:

Steps To Duplicate:

1. In Branch 30 the Item Cost (P4105) for Inventory Item GMITEM has the following setup.
    a. Sales Inventory Cost Method = 07 (Standard Cost)
    b. Standard Cost = 40.00 (USD)
2. Sales Order Entry (P4210) Version for Intercompany Sales Orders has the following setup.
    a. Intercompany Invoice = 1 (create intercompany invoices)
    b. Interbranch Order Type = “SI”
    c. Cost or Base Price Markup = Blank (Use Cost)
3. Create the Sales Order with Branch 70 (EUR Currency) and Customer 2705 (EUR Currency) in the header.
4. On the Detail Line enter GMITEM and Branch Plant 30, the cost defaults in as 35.3720 EUR (40.00 USD).
5. Manually change the cost on the detail line from 35.3720 EUR to 50.00 EUR.
    (This client does NOT manually enter orders but imports order data from another system and the other system provides the cost.)
    a.Save the order.
6. Check the Sales Detail (F4211) in Databrowser.
    a. Interbranch Flag is set to 2
    b. Unit Cost is 50 EUR
    c. Cost Override Flag = 1
    d. Transfer Cost = 40.00
7. Setup a version of Ship Confirm (P4205) as follows:
    a. Order Type = SI
    b. Relieve On-Hand Inventory Override = 1 (Do Not relieve inventory)
    c. Determine Interbranch orders by order type = 1 (Determine Interbranch orders by order type).
    d. Interbranch Order type (SI SK)
8. Ship Confirm the SI Order without relieving inventory
9. Check Item Ledger (F4111). Inventory was not relieved so no records were created.
10. Run Create intercompany Orders (R4210IC). Sales order SK 107 is created.
11. SK Order is 56.5419 USD (50.00 EUR)
12. Row Exit to Related Purchase Order (20 OK)
     a. Unit Cost is 56.5419 USD which is greater than the Standard Cost of 40.00 USD
     b. Order Status is 220/440
13. Setup a Voucher Match (P4314) Version for OK Purchase Orders. Later, Sales Update (R42800) will create Two-Way Match Voucher with this version to close out the OK order.
    a. Set Defaults Tab Option #1 (Inquiry Order Type) = OK
    b. Set Process Tab Options #1 (From Status) = 440
    c . Set Process Tab Options #2 (Thru Status) = 440
    d. Set Process Tab Options #3 (Outgoing Receipt) Next Status = 400
14. Run Invoice Print (R42565 Version XJDE0001) on the SI Order (98 SI). Invoice 610 RI is created.
15. Create the SK Invoice Print Version (R42565)
     a. Defaults Tab Processing Option #8 (Invoice Document Type) is set to RT
16. Run Invoice Print (R42565 Version XJDE0001) on the SK Order (107 SK). Invoice 72 RT is created.
17. Setup Sales Update (R42800) Version
    a. Interbranch Tab Option #1 (Interbranch Order Type) = SK
    b. Interbranch Tab Option #2 (A/R and A/P Batches) = 1
    c. Interbranch Tab Option #3 (Voucher Match Version) = OK
18. Run Sales Update (R42800). Enter data selection on both SI and SK order numbers.
19. The SI Order and 610 RI Invoice were processed. Inventory was credited for 50 EUR.
20. SK and OK Orders had errors in the Work Center
     a. Distribution AAI 4310 was nor setup for Company 70 for the OK Order
21. In the Item Ledger (P4111), the costs in USD are as follows:
    a. Inventory = -50.00 USD – This is the EUR cost.
    b. Inventory should be 56.54 USD
    c. Standard Cost Variance = 14.63 USD
    d. Standard Cost is 40.00 USD
    e. Variance should be 16.54 USD
22. If this is tested with Sales Update (R42800) where processing option for Interbranch Order Type = SI and SK, the Cardex looks as follows and seems the most correct.
    a. Inventory = 40.00 USD - Transfer Cost which is the actual cost of item GMITEM in BP 30 (Detail/Supplying BP).
    b. Variance written for 4.63-.

A Standard Cost Variance should not be applied to an Intercompany Sales Order unless the user overrides the cost. If the user overrides the cost, the variance should be accurate. If the user overrides the cost, the variance should be Overridden Cost in USD to Standard Cost in USD. The transfer cost should be written to the Cardex from the Supplying/Detail BP.


NOTE: User details / company name / address / email / telephone number represent a fictitious sample (based upon made up data used in the Oracle Demo Vision instance). Any similarity to actual persons, living or dead, is purely coincidental and not intended in any manner.

 

Cause

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In this Document
Symptoms
Cause
Solution
References


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