Weighted Average Cost (WAC) Becomes Negative After Performing Receiver Cost Adjustment (RCA) in ReIM
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:
- Create an item and set the UNIT_COST=10, AV_COST=10, and SOH = 100.
- Create 4 purchase orders (PO), each containing 100 quantity of the item created in step 1.
- Receive all the POs.
- Do an Inventory Adjustment to make the stock 100.
- Adjust the cost for the first PO and make it half of the cost mentioned in the order.
- Check that the AV_COST column is updated in ITEM_LOC_SOH table. AV_COST has been updated to value 5.
- Adjust the cost for the second PO and make it one third of the cost mentioned in the order.
- 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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