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Fusion: CST : Propagation of Cost Adjustment for Inter Org Inventory Transfer in Destination Organization (Actual Cost Method with option Propagate cost Adjustment enabled in cost profile) (Doc ID 2910687.1)

Last updated on JANUARY 01, 2023

Applies to:

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


In Actual costing method, with the option Propagate Cost Adjustment enabled in the cost profile , any Transfer across the Inventory Organization, does it propagate the cost adjustments in Destination Cost Organization for any cost change in Source Inventory Organizations ?

The following is the scenario

1- Item (Actual cost method's Asset cost profile).
2- Cost Method (Actual Cost) which allows Propagate Cost Adjustment.
3- Valuation unit structure (Cost org, Inv Org, Serial).
4- With 2 inventory organizations (Org 1 & Org 2).

  User records PO receipt 2 Qty for the serialized Item A with a unit cost 10 USD in Org 1
  Uer perform Sales order issue for 1 Qty from this Item from Org 1, So the COGS will be 10 USD
- User perform Inte-organization transfer for 1 Qty from this Item to Org 2,
  In Org 2 item will be Sold 10 USD. where perform Sales order issue from Org 2
- After three transactions were done, Item get added with LCM for the previous PO receipt for example +1 USD


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