A Guide To understanding WIP Cost Calculation in PAC (Periodic Average Costing)
(Doc ID 1547915.1)
Last updated on JUNE 09, 2023
Applies to:Oracle Cost Management - Version 12.0.0 and later
Information in this document applies to any platform.
Periodic Average Costing is a period end process which calculates the weighted average cost across all the inventory organizations in a given PAC cost group. The presentation tries to explain the significance of the material relief algorithm in PAC and the relevant setups in WIP which determine the cost relieving mechanism at the time of completing a job.
This presentation has been authored keeping in view an audience familiar with Oracle Cost Management in general and Periodic Average Costing in particular. Explanation has been provided using different test scenarios to understand significance of the setups as well as diagnostics to help with de-bugging.
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