Invoice Price Variance (IPV) Account Has No Offset With Debit Memo On Periodic Average Costing (PAC)

(Doc ID 1338264.1)

Last updated on NOVEMBER 02, 2014

Applies to:

Oracle Cost Management - Version 12.1.2 to 12.1.3 [Release 12.1]
Information in this document applies to any platform.
***Checked for relevance on 12-MAR-2013***



IPV Account Have No Offset with Debit Memo on PAC


IPV Account should have Offset with Debit Memo on PAC (Periodic Average Costing).

The issue can be reproduced at will with the following steps:
Using PAC Costing Method

Use the following for example:
1. Receive goods on 5/10, QTY=17.33, Price=8.1, Amount = 140.37
2. Create Accounts Payable (AP) Invoice for 140.37
Dr. Accrual AP $140.37
           Cr. AP $140.37
3.Create AP Debit Memo for Price Correction, QTY=17.33, Price=-2, Amount = -34.66
Dr. AP $34.66
                Cr. IPV $ 34.66
4. Re-Run PAC Programs
5. The expected values for the Receiving Accounting is
Dr. Receiving $ 105.71
Dr. IPV $ 34.66
            Cr. Accrual AP $ 140.37
6. But the Result is showing as the following:
 Dr. Receiving $ 105.71
            Cr. Accrual AP $ 105.71

This causes two issues:
1)Accrual AP can not be fully netted
2)IPV Account can not be fully netted


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