Average Cost Update set unexpected cost

(Doc ID 1950471.1)

Last updated on OCTOBER 22, 2017

Applies to:

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

Goal

On Average costing, WIP Completion is executed with component item cost 100 and also Average Cost Update is executed with new unit cost 50, and then ran Cost Manager. Then cost was updated to 150 instead of 50. Why it happen?

Reproducing Steps:

  1. Define BOM and cost as below;
    BOM:
    ASSEMBLY_ITEM
    +-- COMPNENT_ITEM -- Unit Cost:100
  2. Cost Manager is not working yet.
  3. Do WIP Completion for 10 units.
    WIP Completion Cost is not calculated yet because cost manager is not running.
  4. Run Average Cost Update for ASSEMBLY_ITEM with New Unit Cost:50.
  5. Run Cost Manager.
  6. Review Unit Cost.
    WIP Completion transaction cost is calculated as 100.
    New item cost of is ASSEMBLY_ITEM set to 150 instead of 50.

If Cost Manager is executed just after Step2, WIP Completion Cost is set to 100 and New item cost is set to 50.

Solution

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