My Oracle Support Banner

Purchase Price Variance (PPV) - Inconsistency In InterOrg Transfer Accountancy (Doc ID 470956.1)

Last updated on MAY 31, 2018

Applies to:

Oracle Cost Management - Version 11.5.10.2 and later
Information in this document applies to any platform.
*** Checked on Relevance on 31-MAY-2018 ***

Goal


Why the distribution is created different for the following situation:
Although the shipping network and organization setup is the same in both Inventory organizations - the cost distribution is different.

When we transfer the item from EKR to BKR the accounting shows:

Intransit receipt
INV Valuation: 144
Inter-org receivables: 144
Purchase price variance or rate variance: 24
Intransit Inventory: -144
Inter-org payables: -144
Overhead absorption: -24


When we transfer the item from BKR to EKR the accounting shows:


Intransit receipt
INV Valuation: 144
Inter-org receivables: 144
Intransit Inventory: -144
Inter-org payables: -144

So there is no accounting on the Purchase price variance and Overhead absorption accounts in the second case.



Solution

To view full details, sign in with your My Oracle Support account.

Don't have a My Oracle Support account? Click to get started!


My Oracle Support provides customers with access to over a million knowledge articles and a vibrant support community of peers and Oracle experts.