FA:SCM:CST: Transfer Orders, Inventory Is Getting Issued At Different Cost To Its Current Item Cost (Doc ID 2767904.1)

Last updated on FEBRUARY 20, 2023

Applies to:

Symptoms

Transfer Orders, inventory is getting issued at different cost to its current item cost.

System configured to use Actual Cost method and the involved items are Serial Controlled.

So far it is user observation that system is considering the first PO line Receipt unit price against any item for all the quantities of that item at the time of transfer order issuance.

Due to this we have exaggerated inventory valuation in the destination organization and inter-organization gain in the source organization.

EXPECTED BEHAVIOR
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Transfer Price should be calculated based on the item cost of the correct layer from the Source Org

STEPS
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The issue can be reproduced at will with the following steps:
1. Qty 14 Received in One PO . The Qty received from  Several PO Lines of the same serial controlled item but every PO line has its own price.
2. This will establish multiple Actual Cost layers in the Source Inventory Organization.
3. Do A transfer Order to Destination Inventory Organization.
4. Check the Item Cost in the Destination Inventory Org, notice all receipt cost layers created are only of one price that is the first PO line price that was received in the Source Organization.
Note, both Source and Destination Inventory Organizations belong to one Cost Org and one Business Unit.

Cause

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