Centralized Procurement PO Receving/PO Receipt Trans Generating Incorrect Accounting
(Doc ID 1908807.1)
Last updated on FEBRUARY 11, 2019
Applies to:Oracle Process Manufacturing Financials - Version 12.1.2 and later
Information in this document applies to any platform.
On : 12.0.0 version, Subledger Accounting
In centralized procurement PO receiving and PO receipt transactions are generating incorrect accounting
PO receiving amount getting debit and credit in PO receipt (Deliver) is incorrect it is transfer price amount from procuring org
They have two Operating units in two Legal entities
1 OU in Malaysia
1 OU in US
The PO raised in Malaysia OU, but the receipt is made in US
This is what is called the concept of Centralized procurement : Inter-company transaction flow set up procuring type.
So there is no Transfer between the two OUs, this is not the concept on Internal sales order : the PO is raised in Malaysia OU and received in US OU, therefore there is no Transfer of material between them
In this case PO receiving and PO receipt transactions are generating unexpected accounting
The PO is raised in dollars, say 10 KG at price of 1$ per kg
But the accounting of the receipt is made by multiplying the PO price by the exchange rate with Malaysia currency, this should not be done as PO currency is already dollar
Would like to know exactly what is the expected Posting in case of Purchase order receipt in case of Inter-company transaction flow set up Procuring type.
The issue can be reproduced at will with the following steps:
1. Receive good via an Inter Company Transfer (Internal Sales order)
2. PO receipt (Deliver) transaction posting has posting amount using transfer price amount from procuring org, instead of using Cost or receiving Org
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