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.

Symptoms

On : 12.1.3 version, GST Order Management

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

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

STEPS
-----------------------
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.

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

Cause

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