Rounding of Unit Cost For Material Transaction (Doc ID 471456.1)

Last updated on JANUARY 31, 2017

Applies to:

Oracle Cost Management - Version 11.5.10.2 to 11.5.10.3 [Release 11.5]
Oracle Inventory Management - Version 11.5.10.2 and later
Information in this document applies to any platform.
.
***Check for relevance 04-Aug-2013***

Goal

How is ACTUAL_COST rounded in FIFO costing?

Example:

From warehouse was issued 352000 article (Primary Quantity). System calculate UNIT COST compliant
with FIFO method, and has displayed on INVTVTXN form with fifth decimal place precision 0,17080
and calculate value 60120,85 (it is incorrect result because 352000 x 0,17080 = 60121,6). In
mtl_material_transactions table ACTUAL_COST amount 0,170797878863636.
Next revenue transaction with the same quantity (352000) with UNIT COST 0,17080 and value 60121,6
caused that on account we have 0,75 variation.

Question:
If it is standard functionality of system, please explain why system working like that?

Solution

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