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

Last updated on AUGUST 28, 2016

Applies to:

Oracle Cost Management - Version 12.1.1 to 12.1.3 [Release 12.1]
Information in this document applies to any platform.

Symptoms

On : 12.1.1 version, Inventory Costing

ACTUAL BEHAVIOR
---------------
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.


EXPECTED BEHAVIOR
-----------------------
costs to be calculated correctly

STEPS
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The issue can be reproduced at will with the following 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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