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:Oracle Fusion Cost Management Cloud Service - Version 11.13.21.01.0 and later
Oracle Fusion Cost Management - Version 11.13.20.04.0 and later
Information in this document applies to any platform.
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.
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