Weighted Average Cost (WAC) Becomes Negative After Performing Receiver Cost Adjustment (RCA) in ReIM

(Doc ID 1940501.1)

Last updated on FEBRUARY 12, 2018

Applies to:

Oracle Retail Merchandising System - Version 13.2.4 to 13.2.9 [Release 13.2]
Information in this document applies to any platform.


In Oracle Retail Merchandising System (RMS), Average Cost (AV_COST) becomes zero/negative after performing a Receiver Cost Adjustment (RCA) in Retail Invoice Matching (ReIM), if current Stock on Hand (SOH) is less than the order quantity.

Steps to Reproduce:

  1. Create an item and set the UNIT_COST=10, AV_COST=10, and SOH = 100.
  2. Create 4 purchase orders (PO), each containing 100 quantity of the item created in step 1.
  3. Receive all the POs.
  4. Do an Inventory Adjustment to make the stock 100.
  5. Adjust the cost for the first PO and make it half of the cost mentioned in the order.
  6. Check that the AV_COST column is updated in ITEM_LOC_SOH table. AV_COST has been updated to value 5.
  7. Adjust the cost for the second PO and make it one third of the cost mentioned in the order.
  8. Check the AV_COST column. It shows a negative value in ITEM_LOC_SOH table. AV_COST has been updated to (-1.7).





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