E1: 32: Labor Cost not Included in Foreign Price for Configured Transfer Order (P4210 - ST/OT) When Using Cost Plus Markup for Price (Doc ID 3069033.1)

Last updated on JANUARY 24, 2025

Applies to:

Symptoms

When a Sales Transfer (ST/OT) is entered for a configured item that is sourced from a different currency, Configured Item Revisions (P3210) will not include routing costs when calculating the price based on cost plus markup for price (P3403). When creating a transfer order where both branches use the same currency and the price is based on cost plus markup for price, the price will be the marked up components plus the routing costs (not marked up).

Steps:
1. Create a configured item (P4101/P41026) in a USD demand branch and a CAD supply branch.
2. Create generic Configured Item Segments (P3291).
3. Create P Assembly Inclusion Rules (P3293) where the component branch is the CAD branch.
4. Create an item routing (P3003) in the CAD branch with 1 hour of labor. Make sure that the Work Center has frozen 07 Work Center rates (P3006).
5. Create an R Assembly Inclusion Rule (P3293) using the CAD Branch Routing record from step 4.
6. Create a 10% Branch Transfer Markup (P3404) with From Branch the CAD Branch Plant and To Branch the USD Branch Plant.
7. Create a Transfer Order (ST/OT) where the From Branch is the CAD Branch and To Branch is the USD Branch.
8. Configure in Configured Item Revisions; notice that the Price is only a 10% markup of the material cost. Routing cost is not included.

Changes

Cause

My Oracle Support provides customers with access to over a million knowledge articles and a vibrant support community of peers and Oracle experts.