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Discrepancy Between Inventory Valuation and Receiving Inspection Amount (Doc ID 2256204.1)

Last updated on SEPTEMBER 30, 2024

Applies to:

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

Goal

Receiving Inspection amount is not same as Inventory Valuation amount when material overhead is defined. Items are received with PO (purchase order) unit price:184.01 x quantity:640 (=total amount:117766.4) , but Receiving Inspection amount is calculated = 117767. Why there is one amount mismatch here?

Reproducing Steps:

  1. Currency precision is set to 0.
  2. Material overhead is defined as below;
    • Overhead1: 0.025 (total amount basis, resource_id =4561)
    • Overhead2: 16.96 (item basis, resource_id =4562)
    • Overhead3: 0 (item basis, resource_id =4563)
  3. Receive PO with PO unit price:184.01, quantity:640.
  4. Deliver them to Inventory.
  5. Material Transaction Distribution records are created as below; 
Accounting_Line_Type_id Cost_Element_ID Primary_Quantity Base_Transaction_Value Rate_or_Amount Resource_Id
1- Inventory Valuation 1 - Material 640 117766 184.01  
1- Inventory Valuation 2 - Material Overhead 640 13799 21.56025  
5- Receiving Inspection   -640 -117767 184.01  
3- Material Overhead Absorption 2 - Material Overhead -640 -2944 4.60025 4561
3-Material Overhead Absorption 2 - Material Overhead -640 -10854 16.96 4562
3-Material Overhead Absorption 2 - Material Overhead -640 0 0 4563

 

 

 

 

 

 

 

Solution

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In this Document
Goal
Solution


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