Last updated on FEBRUARY 12, 2017
Applies to:Oracle Cost Management - Version 12.1.3 and later
Information in this document applies to any platform.
On : 12.1.3 version, Cost Maintenance
Cost Rollup is incorrect. It copies cost from frozen and then adds rollup cost inflating the standard cost
The standard cost is doubled when cost rollup is performed AFTER the cost update to frozen.
The expectation is that Costtype2 should show only cost roll up data and not copy cost from frozen cost type on top of roll up data.
So in the example above the result should be: Material = $9, Resource = $6 (total unit cost = $15)
and not Material = $10, Material = $9, Material OH = $2 and Resource = $6 (Total unit cost = $27)
The issue can be reproduced at will with the following steps:
Steps: (V1 = Master Organization, M1 = Inventory Organization)
STEP1: M1: Define 2 cost types: Costtype1 and Costtype2 IN V1
STEP2: V1: Define a Finished Good item FG1 and a Purchased Item C1 and assign to M1
STEP3: M1: Under Costtype1, enter Material ($10) and Material OH ($2) cost for FG1 and Material cost = $9 for C1
STEP4: M1: Run cost update with from cost type = Costtype1 and specific item = FG1 and then for C1
STEP5: M1: Verify the cost under Frozen cost type and for FG1, it should be $10 + $2 and for C1 it should $9
STEP6: V1/M1: Define a BOM with Parent = FG1 and Child = C1 IN MASTER ORGANIZATION and ASSIGN COMMON BOM TO M1 ORG ***IMPORTANT***
STEP7: M1: Define a routing IN CHILD ORGANIZATION (M1) whose cost organization is Master Organization V1 with resource defined with standard rate = $6, assign this resource to a department
STEP8: M1: Define a routing with this resource for FG1 and with usage rate = 1 hour, assigned units = 1
STEP9: M1: Under Costtype2, enter Material cost = $9 for C1
STEP10: M1: Perform cost rollup for Costtype2, full costrollup, specific item = FG1
STEP11: M1: Check the cost of Costtype2. It shows material cost twice ($10 from frozen and $9 from rollup of C1) and Material OH from Frozen
(although there is no material overhead in Costtype2) plus resource cost from roll up.
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