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System Creates Cost Variance After Returns With Perpetual Average Costing (Doc ID 2332848.1)

Last updated on FEBRUARY 21, 2023

Applies to:

Oracle Fusion Cost Management Cloud Service - Version and later
Oracle Fusion Cost Management - Version and later
Information in this document applies to any platform.


System is creating a cost variance with returns on receipt when using Perpetual Average Costing method.
After PO is created and received to inventory then returned after some time the PO ordered item quantities to supplier system generated cost variance accounting event although there are no negative quantity or functional currency difference found.

The issue can be reproduced at will with the following steps:
1. Create a PO, Receive to Inventory and then create cost accounting
2. Return PO to supplier, and then run the create cost accounting process which ends in warning for return to receiving inspection accounting event, resulting in a cost variance


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