Having Circular Reference In Batch Causes Variations in Item Actual Cost

(Doc ID 554202.1)

Last updated on MARCH 16, 2018

Applies to:

Oracle Process Manufacturing Financials - Version 11.5.10.2 and later
Information in this document applies to any platform.
EXECUTABLE:GMCACOST - OPM Actual Cost Process


Goal

*** Checked for relevance on 04-Aug-2010 ***

We are having a problem with the Costs being calculated by the OPM Actual Cost Processor.

This is as a result of a Circular Reference which we need to have in the Formula for one of our Batch Product Items.

In our case the Product Item is Kilowatts of electric power, and a certain predictable amount of power (14% of the generated total) is consumed in the operation of the steam turbine, and the only other Ingredient Item is 'Steam'.

We know that it is possible to modify the behaviour of Actual Costing using the Profile Options for 'Maximum number of iterations' and 'Tolerance', but are finding it impossible to avoid large variations in the cost of the 'Power' Item from one Period to the next.

Profile Options are:

GMF: Actual Costing Maximum Iteration Limit for Circular Reference ('CM$MAX_ITERATION_LIMIT')
GMF: Costing Tolerance Percent ('CM$COSTING_TOLRNC')

Can you suggest an alternative way to proceed which will allow Actual Costing to arrive at the correct cost, and will also maintain the Inventory Quantities of the 'Power' Item correctly?

Solution

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