Cost Variance generated in FIFO for some transaction types (e.g. miscellaneous issue, wip issue, assembly return)

(Doc ID 2004774.1)

Last updated on JULY 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

Item Cost picked incorrectly in Move Order Issue

Unit Cost of few Items are picked incorrectly using FIFO cost method.
The process includes PO receipt for Items which are Lot controlled , these Items are inventorized and transferred to other subinventory through Move Order and later issued from the sub-inventory by miscellaneous issue.

Due to this cost difference variance is created and balance is transferred to Cost variance account represented by accounting line type 13 in mtl.transaction_accounts table.

Example for a miscellaneous issue:

 

where:TXN_ID=transaction-id; ALT=Accounting line type ; CE=cost element ; BTV=base transaction value


TXN_ID        ALT     CE       CCT            BTV               ORGANIZATION_ID      CR_DTE
193853661    1      1      4629069       -1199520                  4950                    09-04-2015 16:02:32
193853661    13            4629080         46813.5                  4950                    09-04-2015 16:02:32
193853661    2              4634039      1152706.5                 4950                    09-04-2015 16:02:3



Cause

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