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.


On : 12.1.1 version, Inventory Costing

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.

costs to be calculated correctly

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?


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