Fusion CST: Transfer Order Pick Value Does Not Match With Trade In-Transit Value And With Inter-Organization (Doc ID 2781008.1)

Last updated on MAY 06, 2022

Applies to:

Goal

On : 11.13.21.01.0 version, Cost Management

Transfer Order Pick Value does not match with Trade In-Transit Value and with Inter-Organization

Cost Method: Actual (FIFO)
Transfer Order across LE'/BU - For 15 QTY
Step 1: Transfer Order Pick: From Two (2) layers as below
  Layer 1= QTY 10 @ $50 = $500
  Layer 2 = QTY 5 @ $60 = $300
  Journal Entry DR/CR - Clearing & Inventory is correct at $800

Step 2: Transfer Order Inter-Organization Shipment (Relieving Inventory) @ Cost
  In-Transit Valuation Dr $900 (As against $800 as above step 1 pick)
  Inventory Cr $900 (As against $800 as above step 1pick)
(Shipment cost is overstated by $100. This will get mirrored on Intercompany COGS)

Step 3: Trade In-Transit Issue:
  Inter Company COGS Dr $900
  In-Transit Valuation Cr $900 (As against $800 as above step 1 pick)
  
Why are Step 2 and 3 overstated and books cost at last picked layer cost and not mimic
the pick transaction actual cost?   This does not even average the layer receipt cost.
 

Solution

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