LOT BASED (SERIAL BASED) FIFO COSTING
(Doc ID 375837.1)
Last updated on JANUARY 30, 2022
Applies to:Oracle Cost Management - Version 11.5.8 to 12.2.7 [Release 11.5 to 12.2]
Information in this document applies to any platform.
Service Industry with Depot Repair and Spares Management modules creating usable part numbers from defected part numbers in a FIFO wip mode repair order cannot choose and separate via subinventory FIFO cost layers the difference in cost between a defected item and the same part number that is usable. Spares Management allows the Oracle Field service user to distinguish subinventories as defected subinventories and usable subinventories. Depot repair refurbished defected items from the defected subinventory via WIP component issue and completes the same part number to a usable subinventory via a WIP completion transaction. In a FIFO cost method inventory organization, the wip component issue must transact at the correct FIFO layer the defected item into the non standard repair wip job at a defected cost versus FIFO a layer which could result in getting a cost that reflects a usable item. A usable item would have a higher FIFO cost than a defective item that is solely stored in a defective subinventory defined in the Spares management module.
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