Closing EAM Work Order Generates Incorrect Variance For Cost Of Direct Items (Doc ID 374616.1)

Last updated on NOVEMBER 05, 2016

Applies to:

Oracle Cost Management - Version 11.5.10.2 and later
Information in this document applies to any platform.

Symptoms

Steps to reproduce:
==================


1. Create a eAM work order
2. Add one direct item
3. Release a eAM work order
4. Find approved PR and create PO
5. Receive direct item
6. Complete a eAM work order
7. Close a eAM work order.
8. Find all cost information

When closing work order, variance cost of direct item was not correctly generated.

Assume that specify the cost element to 'Labor' and valuation account to 'Resource' by setting up category association.

After receiving transactions about direct item, account distribution happen as follows. It is very clear.
-------------------------------------------------------------------------
1. Receipt from Supplier:

DR. Receiving Inspection @ PO cost XX
CR. AP Accrual XX
-------------------------------------------------------------------------
2. Delivery to Shop Floor:

DR. WIP Resource Valuation XX
CR. Receiving Inspection @ PO Cost XX
-------------------------------------------------------------------------
After that, when closing eAM work order, variance cost of direct item was generated as follows.

At eAM work order close,
--------------------------------------------------------------------
DR. WO Material variance XX
CR. WO Resource valuation XX
--------------------------------------------------------------------------
After closing work order, this WIP resource valuation account cleared,so it's value is '0(zero)'.
In this case, if eAM work order have both one inventory item and one direct item, when closing eAM work order, costs are charged to the same material variance account.

Following are the observations:

1. Balance data, WIP_PERIOD_BALANCES table, correctly generated with the following two column values.
- PL_RESOURCE_IN
- PL_RESOURCE_VAR

2. But, account data, WIP_TRANSACTION_ACCOUNTS table, wrong created as the below.
- After closing a eAM work order, variance cost of direct item charged to 'WIP MaterialVariance Account'.

Cause

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