Resource Cost is Not Absorbed In Product Cost instead it is shown in Batch Close Variance Account

(Doc ID 2005137.1)

Last updated on APRIL 04, 2017

Applies to:

Oracle Process Manufacturing Financials - Version 12.1.3 and later
Information in this document applies to any platform.

Symptoms

On : 12.1.3 version, Actual Cost Process

ACTUAL BEHAVIOR
---------------
Resource Cost not absorbed in Product Cost

When running Create accounting to view output of the accounting entries related to a production batch, the resource costs are not absorbed in the Product Cost, instead they are shown in the Batch Close Variance Account.


EXPECTED BEHAVIOR
-----------------------
That the resource cost be absorbed into the product cost

STEPS to Reproduce
-----------------------
The issue can be reproduced at will with the following steps:
1. Run Actual Costing
2. Run Cost update
3. Run Create Accounting


BUSINESS IMPACT
-----------------------
The issue has the following business impact:
Due to this issue, resource cost is not absorbed in the Product Cost,instead it is shown in Batch Close Variance account.

Cause

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