Incorrect Accounting Entries Created for Logical Inter Company Shipment Receipt Transaction In Selling Organization

(Doc ID 1143636.1)

Last updated on NOVEMBER 19, 2016

Applies to:

Oracle Inventory Management - Version: 12.1.1 and later   [Release: 12.1 and later ]
Information in this document applies to any platform.

Symptoms

Find that the accounting entries for Logical Intercompany Shipment Receipt transaction created in the selling organization is incorrect.

STEPS

Example as in the customer's case :
Intercompany sales order #7100003

Transaction Date = 02-SEP-2009
Test date = 02-NOV-2009

Order ORG = ES1 (Function Currency: EUR)
Ship ORG = TW1 (Function Currency: TWD)

Conversion Rate on 02-SEP-2009: 46.77
Conversion Rate on 02-NOV-2009: 48.8

Selling Price on Sales Order: 6.63 EUR
Transfer Price: 5.52 EUR
(Periodic Costing) Item Cost on TW1: 50 TWD


1. Ship Confirm on TW1
2. Create Deferred Logical Transactions
3. Create I/C AR Invoice on TW1
4. Autoinvoice on TW1
5. Create I/C AP Invoice on ES1
6. Open Interface Import on ES1


Accounting
1. Ship Confirm on TW1
Dr. COGS 50 (TWD)
Cr. Inventory 50 (TWD)

2. Logical Intercompany Shipment Receipt on ES1
Dr. Inventory 5.76 (EUR)
Cr. AP-Accrual 5.76 (EUR)

3. Logical Sales Order Issue on ES1
Dr. Deferred COGS 5.76 (EUR)
Cr. Inventory   5.76  (EUR)

4. COGS Recognition on ES1
Dr. COGS 5.76 (EUR)
Cr. Deferred COGS 5.76 (EUR)

5. Intercompany AR on TW1
Dr. AR 5.52 (EUR)
Cr. Revenue 5.52 (EUR)

6. Intercompany AP on ES1
Dr. AP Accrual 5.52 (EUR) 
Cr. AP       5.52 (EUR)


EXPECTED BEHAVIOR

Expect the accounting entries to be correct.

Actual thinking will be that the value 5.76 comes from 5.52 / 46.77 * 48.8

  *Conversion Rate on 02-SEP-2009: 46.77
  *Conversion Rate on 02-NOV-2009: 48.8

This value is wrong, the correct value is 5.52

Cause

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