My Oracle Support Banner

GST : Cost Variance Account Getting Hit For Some Items In Lieu Of Average Cost (Doc ID 2329056.1)

Last updated on NOVEMBER 20, 2017

Applies to:

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


On : 12.1.3 version, GST Order Management

Non-recoverable taxes are accounted against cost variance account rather than inventory valuation account.

Non-recoverable taxes should be accounted against inventory valuation/material account.

The issue can be reproduced at will with the following steps:
1. Create a receipt with non recoverable taxes.
2. perform deliver.
3. Run Average Cost update.
4. The Cost variance account is hit due to the issue.

The issue has the following business impact:
Due to this issue, wrong accounting entries created.


To view full details, sign in with your My Oracle Support account.

Don't have a My Oracle Support account? Click to get started!

My Oracle Support provides customers with access to over a million knowledge articles and a vibrant support community of peers and Oracle experts.