Vision Demo - OPM Case Study on Perpetual Weighted Average Cost (PPAC)
(Doc ID 2206315.1)
Last updated on NOVEMBER 22, 2016
Applies to:Oracle Process Manufacturing Financials - Version 12.1.3 and later
Information in this document applies to any platform.
This paper will explain PPAC cost type as well as difference between PMAC (Period Moving Average Cost) and PPAC with a test case in Vision Demo instance:
Perpetual Weighted Average Cost (PPAC)
The perpetual weighted average cost type computes the average cost for the entered receipts and quantities within the defined boundaries of the cost calendar. The calendar definition may in turn be identical to a fiscal year, or may span multiple fiscal years providing the flexibility of a variety of Perpetual Weighted Average cost methods.
PPAC is calculated by dividing -- the sum of the transaction quantity multiplied by price -- by the sum of transaction quantity.
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