Multi-line Inter-organization Transfers For Lot/Serial Level Valuation Averages Cost Even When Cost Profile Is Set To Actual In Both Organizations
Last updated on MAY 01, 2018
Applies to:Oracle Fusion Cost Management Cloud Service - Version 11.13.17.09.0 and later
Oracle Fusion Cost Management - Version 188.8.131.52.0 and later
Information in this document applies to any platform.
Inter-org transfers with multiple transaction lines for same item between Inventory organizations belonging to the same BU,has shipping organization issuing material at a cost (valuation unit at lot/serial level), but even though the cost profile is at actual costing on both the inventory organization, it is creating cost transactions with a receipt layer in receiving organization at a 'Transfer price' which is the average cost of all the lines in the inter-org transaction for that item.
Inter-org transfer receipts without intercompany would be costed at actual cost of the item in the receiving organization. i.e. if it was issued out at 0.00 from shipping organization, it will be costed at 0.00 if these were first items to be received in the receiving organization.
The issue can be reproduced at will with the following steps:
1. Create an Inter-organization Direct Transfer at 0.00 cost from shipping organization
2. Receive it in the receiving organization
3. Run Transfer Transaction from Receiving to Costing and Transfer Transaction from Inventory to Costing.
4. Submit the 'Create Cost Accounting Distributions'
5. See the cost transaction for this inter-org is created with a receipt layer at non zero unit cost
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