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Cannot absorb Material Overhead MOH Avg Rates do not roll Into Average Item Cost (Doc ID 1340373.1)

Last updated on FEBRUARY 05, 2024

Applies to:

Oracle Cost Management - Version to 12.1.3 [Release 11.5 to 12.1]
Information in this document applies to any platform.



For All Items in all organizations.

Defined Material Overhead rates and they show in the Cost Type "Avg Rates" for an item but cannot be incorporated into the total Cost Type "Average" Cost as a separate Material Overheads.

Cannot get Material Overheads that are defined to be incorporated into the Unit Cost of the item.

Material Overhead "Avg Rates" do not roll into "Average" Item Cost after transacting Account Alias Receipt

Expect Material Overhead to roll into " Average" Item Cost.
They expect the defined Material Overheads would default not just into the Avg Rates but into the Material Overhead "Average" cost type for the total Unit Cost of the item.

The issue can be reproduced at will with the following steps:

1. Responsibility: Inventory Super User
2. Navigation: Inventory, Setup
3. Setup Material OH for Fulfillment and Kit Fee's for Costing Org BRT
4. Assign them both as defaults to every item @ zero value.
5. Assign value for Fulfillment Fee to items based on Item Category.
6. Verify Item Category resides on item in costing org (BRT).
7. Create Item, Assign organization -
8. View Item Cost - No material overhead is part of the unit cost. Only captured in Avg Rates not "Average"
    item cost.


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