Weighted Average Cost (WAC) Becomes Negative After Performing Receiver Cost Adjustment (RCA)
Last updated on AUGUST 17, 2016
Applies to:Oracle Retail Merchandising System - Version 12.0.8 to 220.127.116.11 [Release 12.0]
Information in this document applies to any platform.
Checked for relevance July 2013
Weighted Average Cost (WAC) becomes zero/negative after performing a Receiver Cost Adjustment (RCA) in Retail Invoice Matching (ReIM), if current Stock on Hand (SOH) is less than order quantity.
Steps to Reproduce:
1. Set RCV_COST_ADJ_TYPE to 'S' in SYSTEM_OPTIONS.
2. Create an item and set the UNIT_COST and AV_COST.
3. Create 4 purchase orders (PO), each containing 100 quantity of the item created in step 1.
4. Receive all the POs.
5. Do an Inventory Adjustment to make the stock 50.
6. Adjust the Cost for the first PO and make it half of the cost mentioned in the Order.
7. Check that the AV_COST column is updated in ITEM_LOC_SOH table.
8. Adjust the Cost for the second PO and make it one third of the cost mentioned in the Order.
9. Check the AV_COST column. It shows a negative value in ITEM_LOC_SOH table.
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