Item Cost Calculated As Average Cost Instead Of FIFO. Cost Type Setup As FIFO (Doc ID 1527911.1)

Last updated on OCTOBER 17, 2023

Applies to:

Symptoms

We have setup cost type as FIFO, but for Item 'XXXX' there are several layers created by the Item Cost calculated as Average Cost instead of FIFO.



STEPS
-----------------------
1. Cost Management
2. Update layer costs
3. Organization S01
4. Item XXXX
5. CG-0000
6. Layer cost update transactions > Average Cost = 26,300.50/20 = 1315.025 (which matches with Item Cost)
7. The cost type setup is FIFO. Then why system is calculating item cost as Average Cost?

Cause

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