Average Cost Update set unexpected cost (Doc ID 1950471.1)

Last updated on MAY 14, 2016

Applies to:

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

Goal

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

 

Reproducing Steps:

------------------
BOM:
ASSEMBLY_ITEM
+-- COMPNENT_ITEM -- Unit Cost:100
------------------

1.Cost Manager is not working yet.

2.WIP Completion
 Qty:10
  --> WIP Completion Cost is not calculated yet because cost manager is not running.
  --> We expect that Unit Cost would be 100 after Cost manger running.

3.Run Average Cost Update with New Unit Cost:50

4.Review Unit Cost
  --> WIP Completion Cost is set to 100.
  --> New item cost is set to 150 instead of 50.

If we run Cost Manager just after Step2, Unit Cost is updated as below and we expected the same on the above case.
  --> WIP Completion Cost is set to 100.
  --> New item cost is set to 50.



 

Solution

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