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Invoice Price Variance (IPV) Account Has No Offset With Debit Memo On Periodic Average Costing (PAC) (Doc ID 1338264.1)

Last updated on FEBRUARY 06, 2019

Applies to:

Oracle Cost Management - Version 12.1.2 to 12.1.3 [Release 12.1]
Information in this document applies to any platform.


IPV Account Have No Offset with Debit Memo on PAC

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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