Incorrect WAC Calculation When Using Proportion Distribution of Expenses Based on Item Cost (Doc ID 1991186.1)

Last updated on AUGUST 17, 2016

Applies to:

Oracle Retail Merchandising System - Version 14.0 and later
Information in this document applies to any platform.

Symptoms

When performing Actual Landed Cost (ALC) finalization (finalization/WAC) for a purchase order (PO) having an advance ship notice (ASN) shipment obligation with component allocation type set as 'Amount' in order to apportion the invoice amount weighted by the value of the PO/items, weighted average cost (WAC) calculation is correct for the first shipment/obligation.   However, the calculated WAC is incorrect when a second obligation is created for a second shipment for the same PO.

Steps to Reproduce:

  1. Make sure PROCUREMENT_UNIT_OPTIONS.RCV_COST_ADJ_TYPE is set to 'S'.
  2. Create 3 items with different unit costs.
  3. Create a PO for the created items [e.g., Quantity to be ordered: Item1: 20 EA, Item2: 30 EA, Item3: 40EA].\
  4. Create a shipment [e.g., Quantity to be shipped: Item1: 5, Item2: 7, Item3: 10].
  5. Receive the shipped quantity.
  6. Create an obligation with amount as the allocation type of 500.
  7. Finalize the ALC with WAC.
  8. Check the WAC. It is calculated properly.

    For the second shipment, please follow the below steps:

  9. Create another shipment [e.g., Quantity to be shipped: Item1: 6, Item2: 3, Item3: 8].
  10. Receive the shipped quantity.
  11. Create obligation with amount as the allocation type of 1000.
  12. Finalize the ALC with WAC.
  13. Check the WAC. It is incorrectly calculated.

Cause

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