Accounted value in Material Distributions is rounded leading to differences in Inventory Valuation (Doc ID 1392775.1)

Last updated on MARCH 08, 2017

Applies to:

Oracle Cost Management - Version 12.1.3 and later
Information in this document applies to any platform.
***Checked for relevance on 02-DEC-2014***

Goal

Material Account Distributions Report shows non zero value on material
account while onhand balance is zero.

Find a rounding error in MTL_TRANSACTION_ACCOUNTS table where transaction
values are rounded to two decimals in column BASE_TRANSACTION_VALUE.
The sum of the rounded values for receiving transactions is not equal to the
sum of the rounded values for issue transactions.

Following is a testcase:

1. The specific organization does not allow negative onhand, and use Average Cost
2. Functional Currency is "TWD"
3. Create an item PO_TEST01
4. Miscellaneous Receipt 1 piece with unit cost $29.67, got Material Distribution following
Cr. Inventory valuation $30
Dr. Account $30
5. Miscellaneous Receipt 1 piece with unit cost $29.67, got Material Distribution following
Cr. Inventory valuation $30
Dr. Account $30
6. Miscellaneous Issue 2 pieces without unit cost , got Material Distribution following
Cr. Account $59
Dr. Inventory valuation $59

We are expecting the Inventory valuation total balance is ZERO.

Why is the Inventory valuation total balance $1?

Solution

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