Why Does An In-transit Receipt Have Sending Organization Item Cost And Not The Sales Order Item Cost? (Doc ID 2170144.1)

Last updated on JUNE 23, 2017

Applies to:

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

Goal

Explain why In-transit receipt is costed at sending organization cost, but not Sales Order price.

Here is an example on customer case;

Organization
-Sending Org:A1
-Destination Org:B1
--> These are in the Same OU.

Initial Cost
-ORG=A1 Item Cost: 8950.0797
-ORG=B1 Item Cost: 0

Shipping Network
-Transit Type:Intransit
-FOB:Receipt

Profile
-CST: Transfer Pricing Option:No
-INV: Intercompany Invoice for Internal Orders:Null(No)

1.Create internal requisition. Destination Org= B1 / Source Org= A1
2.On internal Sales order, cust changes price from 8950.079 to 10000.
3.Execute sales order issue.
4.Intransit Receipt is costed at 8950.079 (source org cost), but not 10000 (sales order price).

Even if they set CST: Transfer Pricing Option:Yes, In-transit Receipt is costed at 8950.079 (source org cost).

Solution

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