Why WAC in RMS Wrongly Updated After RCA in REIM Performed if the Stock On Hand <= Adjusted_Quantity? (Doc ID 1397374.1)

Last updated on JULY 04, 2016

Applies to:

Oracle Retail Merchandising System - Version 13.1.3.6 and later
Information in this document applies to any platform.

Goal

Why is Weighted Average Cost (WAC) in Retail Merchandising System (RMS) wrongly updated after a Receiver Cost Adjustment (RCA) in Retail Invoice Matching (REIM) is performed? This is if the Stock On Hand <= Adjusted_Quantity.

Required Steps To Recreate:
On the RMS Side:
1. Created 3 Purchase Orders (PO's) with same item whose unit cost is 10. Each order has a quantity of 10.
2. Make sure that AV_COST=10, UNIT_COST=10 , STOCK_ON_HAND=5 in the ITEM_LOC_SOH table.
3. Ship and recieve all 3 PO's i.e total STOCK_ON_HAND will be 30+5=35.
4. Then suppose that the item was sold 30quantity out. So, AV_COST = 10, 
STOCK_ON_HAND = 5. (Do an inventory adjustment.)
On the REIM side:
1. Create 3 invoices for 3 PO's respectively.
2. Each invoice should be created with a unit cost of 11 i.e total cost will be 11*10 = 110.
3. Now try to match all three invoices - and will have cost discrepancy.
4. Try to resolve the discrepancy using Invoice as Correct (i.e do an RCA)
5. After matching all three invoices, review the AV_COST in the ITEM_LOC_SOH table, it will be 13 i.e 10 + 1 (from PO1) + 1 (from PO2) + 1 (from PO3).

Solution

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