18409972 Inccorect Calculation Of Item Cost Fro FIFO Costing Organization (Doc ID 1675627.1)

Last updated on SEPTEMBER 26, 2016

Applies to:

Oracle Cost Management - Version 12.1.3 and later
Information in this document applies to any platform.

Symptoms

On : 12.1.3 version, Inventory Costing

ACTUAL BEHAVIOR
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Inccorect calculation of item cost fr FIFO costing organization

We discovered that system for some items wrongly calculate item costs. This has effect to column PRIOR_COST in MTL_MATERIAL_TRANSACTIONS which is used in many standard reports to calculate inventory value.

The actual formula used by the system is unknown but definitely wrong.

The problem relates to number of items – over 100 in total.

EXPECTED BEHAVIOR
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Expect correct item cost and correct column PRIOR_COST

STEPS
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The issue can be reproduced at will with the following steps:
1. Responsibility: Inventory super user
2. Navigation: Inventory, Transactions.
3. Perform PO receipt and WIP transactions
4. Check Item cost

BUSINESS IMPACT
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The issue has the following business impact:
Due to this issue, The problem has severe impact on business – due to faulty calculations all reports showing inventory values based on PRIOR_COST which originates from NEW_COST shown in the file are wrong. The company lost information on the values of its inventory assets. It is also endangered that distribution of material consumption is also wrong and therefore the system incorrectly calculates the costs and consequently taxes. This is severe danger for continuous operations of the company.

Cause

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