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Total Cost Should Be Calculated With Unit Cost And Not WAC For Non-Inventory Items Sales (Doc ID 2998798.1)

Last updated on JANUARY 18, 2024

Applies to:

Oracle Retail Merchandising System - Version 16.0.3 and later
Information in this document applies to any platform.

Symptoms

ACTUAL BEHAVIOR
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[Non-inventory Items Sales] Total cost should be calculated with Unit Cost and not WAC
  
For items with inventory_ind = 'N' (Non-inventory Items) there are sales transactions where the total cost is calculated with a wrong unit cost.
It is understood that the WAC is being used because of the system option.
But not understood how the process is not validating that for this type of items, the WAC is different from the unit cost.
 
Is there at the moment of the cost management process validation or update of the WAC to guarantee that both are equal?
 
Using the below formula with 0 Quantity on hand (non-inventory item) AV_COST should be equal to the UNIT_COST;

For transactions with quantity, the formula that is used to calculate weighted average cost is:
[(QtyOnHand x CurrWghtAvgCost) + (TransQty x TransUnitCost)] / (QtyOnHand + TransQty) = WghtAvgCost

EXPECTED BEHAVIOR
-----------------------
AV_COST should be equal to the UNIT_COST


Cause

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In this Document
Symptoms
Cause
Solution
References


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