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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:

Oracle Cost Management - Version 12.0.0 and later
Information in this document applies to any platform.


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.

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?


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