OPM Actual Cost Process Calculates Wrong Item Cost For Transfers Across Different Cost Organizations (Doc ID 2270034.1)

Last updated on JUNE 01, 2017

Applies to:

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

Goal

This note is to describe a specific scenario which cannot be properly costed by Actual Cost Process due to limitations in the design.

Consider following scenario:

- Created item and assign it to ORG1 and ORG2;
- In PERIOD1, created on-hand (for example, quantity = 100) with an unit cost of 10 in ORG1;
- Item cost calculated by Actual Cost in PERIOD1 in ORG1 is 10;
- In PERIOD1, have inter-org transfer between ORG1 and ORG2 for full quantity = 100;

- On-hand balance at the end of PERIOD1 in ORG1 is ZERO;
- Received the inter-org transfer in ORG2 in PERIOD2, and then transfer entire quantity = 100 back from ORG2 to ORG1 in same PERIOD2;

- Run Actual Cost for PERIOD2 and get cost of 10 in ORG2 and 10.1 in ORG1;

- Cost of 10.1 in ORG1 is not correct, as only costing transaction is receipt of inter-org transfer from ORG2, where item cost is 10;

 

Solution

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