Getting Close Variance Instead of Substitution Variance When Costing Formula Owned by Different Organization than Production Formula
(Doc ID 2440622.1)
Last updated on JULY 14, 2020
Applies to:Oracle Process Manufacturing Financials - Version 12.2.6 and later
Information in this document applies to any platform.
On : 12.2.6 version, OPM PreProcessor
When the Costing formula used for Cost Rollup and the Production formula used to create a batch are both owned by an organization other than the org for the batch, OPP classifies what should be Substitution Variance under Close Variance instead. Note that with old version gmfxuget.lpc is version 120.45.12020000.24 this problem does not occur, but with the latest version 120.45.12020000.41 the problem occurs.
Create two formulas for the same product in org 2 (owning org defaults to org 2), one that will be used on a recipe with a Production validity rule and one that will be used on a recipe with a Costing validity rule.
Have different quantities for the ingredients that the two formulas share, and have at least one additional ingredient in the costing formula than is in the production formula.
Create recipes in org 2 (creation org and owning org default to org 2), and create a Costing validity rule for the one recipe and a Production validity rule for the other recipe, specifying the validity rules are for org 1.
All subsequent steps are done in org 1.
Create batch from production recipe, release, complete, and close, letting all actual quantities equal plan qty.
Enter costs for ingredients, run cost rollup, run cost update, run OPP
Run Detailed Subledger report.
The difference between the quantities of the shared ingredients between the costing and production formulas are shown as USG.
The variance due to the costing formula having additional ingredients is shown as CLS.
If the exact same thing is done, with the only change being that the creation org and owning org on the formulas and recipes are org 1, then the variance due to the costing formula having additional ingredients is shown as SUB, which is what the customer expects.
The variance due to the costing formula having additional ingredients is expected to be shown as SUB, regardless of what org owns the formula and recipe; these should be irrelevant.,
The issue has the following business impact:
Due to this issue, variances are not computed as expected.
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