Invoice Transfer Variance Confirm If Amount Transferred If Receipted Goods Are Already Issued (Doc ID 1206888.1)

Last updated on MARCH 08, 2017

Applies to:

Oracle Cost Management - Version 12.1.2 and later
Information in this document applies to any platform.
.
***Checked for relevance 21-Apr-2013***

Goal


Request: Invoice Variance Transfer.
This program will transfer the variance posted to GL from the PO/Invoice match to inventory. We require clarification regarding the following:
1. What happens to the variance, where some of the items have already been issued out of inventory and charged to Cost of Goods sold, prior to the Invoice Variance Transfer program being run?
- Does the whole variance amount still get charged against the remaining items in inventory (even though the items have now been issued and no longer in inventory)?
- Does the program only transfer the variance amount only relating to the items still in inventory?
- For the items that were issued and become COGS - what happens to the invoice variance relating to those items when the program is run? Does it still get allocatted to inventory, or does it remain
in GL unallocated?

Steps to Reproduce :
Enter PO with cost X.
Receipt PO.
Enter Invoice and Match to PO - but with cost Y.
Create Accounting and Transfer Invoice to General Ledger
Go to Cost Management and run program for Invoice Variance Transfer.

Example:
2 Goods receipted are matched to invoice, and create an invoice price variance of $20 ($10 per item). If one of the items has already been shipped as part of an order and becomes Cost of Goods Sold, BEFORE the purchase receipt is matched to the invoice what happens?
When running the Invoice Price Variance program,
(a) does the full $20 still get applied to the inventory value (even though only one of the items is still in stock)? OR
(b) does only $10 get applied to the inventory value (being the remaining item still in inventory)? If (b) is the case (ie only $10 applied), what happens to the remaining $10 of the invoice price variance relating to the item part of Cost of Goods Sold? (Does it just stay in GL, and has to be journalled manually - or does it get transferred to another account e.g. Cost of Goods Sold?)

Solution

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