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

Last updated on MARCH 28, 2017

Applies to:

Oracle Cost Management - Version 11.5.10.2 to 11.5.10.3 [Release 11.5]
Information in this document applies to any platform.
*** Checked on Relevance on 15-JAN-2016 ***

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

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