Costing Hook Usage For Dropship Material Overhead Handling

(Doc ID 2352377.1)

Last updated on JANUARY 25, 2018

Applies to:

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

Symptoms

ACTUAL BEHAVIOR
On FIFO org, Material Overhead(MOH) absorption rule is defined for PO receipt, However to avoid material overhead from being earned for Dropship PO receipt (not involving intercompany flow), custom code is defined on CSTPACHK.actual_cost_hook to set material overhead cost = 0 on mtl_cst_actual_cost_details.

Row1:
- cost_element_id = 1 (Material)
- level_type = 1
- actual_cost = PO Unit Price
- prior_cost = 0

Row2:
- cost_element_id = 2 (Material Overhead)
- level_type = 1
- actual_cost = 0
- prior_cost = 0

Dropship PO receipt is executed for 2 units with PO price=4466.66 then Cost Manager created MTA records as below;

Accounting_line_type /Base Transaction Value /Rate or Amount Cost /element id

Accounting_Line_type Base_Transaction_Value Rate_or_amount Cost_Element_id
1: Inv Valuation 8933.32 4466.66 1
3:Overhead absorption 0 133.9998 2
31:Clearing -8933.32 4466.66 1
1: Inv Valuation -268 -134 2
13:Cost Variance 268 133.9998  






 



Then 0 amount is set for Overhead Absorption record on debit side (second line), but material overhead is earned on credit side (forth line). It cause cost variance in debit side (fifth line).

EXPECTED BEHAVIOR
Material overhead Amount is updated with the amount specified on hook.

STEPS
The issue can be reproduced at will with the following steps:

  1. Add customer code on CSTPACHK.actual_cost_hook to insert data as below mtl_cst_actual_cost_details
    cost_element_id = 1, actual_cost = 4466.66
    cost_element_id = 2, actual_cost = 0
  2. Compile CSTPACHK.
  3. Receive Dropship PO.
  4. See distribution Records on mtl_transaction_accounts.

Cause

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