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FAQ Periodic Average Cost and Periodic Absorption CostingOSTING (PAC/PACP/IPAC) Interorg Transactions in PAC (Doc ID 559123.1)

Last updated on MAY 16, 2018

Applies to:

Oracle Supply Chain Globalization - Version 11.5.10.2 to 12.1.3 [Release 11.5 to 12.1]
Oracle Cost Management - Version 11.5.10.2 to 12.2.5 [Release 11.5 to 12.2]
Information in this document applies to any platform.
Supply Chain Globalization - Version: 11.5.10.2 to 12.x.x
Cost Management-> Periodic Costing -> Periodic Cost -> - Periodic Acquisition Processor
Cost Management-> Periodic Costing -> Reports -> Periodic Absorption Cost Processor

Cost Management-> Periodic Costing -> Periodic Cost -> Periodic Cost Processor
Cost Management-> Periodic Costing -> Periodic Cost -> Periodic Cost Distribution Processor
Cost Management-> Periodic Costing -> Reports -> Periodic Absorption Cost Processor

*** Checked on Relevance on 16-MAY-2018 ***

Purpose

To aid users and support engineers in problem resolution.

This document provides a compiled list of R 11.5.10/ R12 frequently asked questions on  Periodic Average Cost (PAC-IPAC) - Periodic Absorption Cost Processor

Questions and Answers

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In this Document
Purpose
Questions and Answers
 Is it possible to setup both PAC and perpetual costing method for same inventory organization?
 Is it necessary that transactions have to be costed in perpetual costing before these transactions are PAC costed?
 Perpetual cost manager is down.  All the transactions are stuck in perpetual.   Is it possible to run PAC?
 How are sub-inventory transfers within same inventory organization processed?
 How are inter-org transactions within same cost group processed?
 How are inter-org transactions across cost groups processed?
 How is expense account  for interorg txns (direct or intransit) within same PAC cost group?
 Is it necessary to close all inventory organization periods, before closing PAC period?
 Do not Periodic Cost Update New Cost or %ge change the PAC item costs of the current onhand PAC inventory in the current PAC period?
 How to validate Periodic Cost Update LOV (list of values) when updating periodic costs?
 What is the difference between PAC and Average Costing?
 How do you link resource rates, department overheads, outside processing costs for PAC?
 In Org Cost Group / Cost Type Association screen, there is an indicator for Material Relief Algorithm.  Can you explain the functionality?
 In Org Cost Group / Cost Type association screen, there is an option to enter Process Up to Date.   Can you explain the purpose of this field?
 How does closing Inventory Accounting period early, impact PAC and GL accounting periods?
 Is this functionality available to any customer?
 How is it verified that the customer is a Brazilian Customer?
 What are the major differences with the Periodic Costing functionality?
 What are the setups required for availing PAC?
 What is the difference between the setup for Periodic Costing and Periodic Absorption Costing?
 Any Additional Setup Hints related with Periodic Costing?
 Does the user need to select Accounting Library to use the Periodic Absorption Costing?
 How is the PAC cost calculated for Interorg Transactions across cost groups?
 Does the user have an option of updating the PAC cost?
 What are the major processes involved in working of Periodic Absorption Costing, and whats is its scope?
 What is the Cost Group running sequence for Inter-Organization Transfers?
 What does the interorg cost processor do during iterations, what are the internal processes?
 What is Tolerance?
 Whether assembly rollup done or inter org done 1st, for an item if it has both?
 Are miscellaneous issues, processed as cost owned transactions when there is a cost on it?
 Does Periodic Moving Average Cost (PMAC) get initialized to 0 when it runs out negative during PAC process of cost owned transactions?
 What does Level mean?
 Do the calculation for the Material Overhead Cost, Resource Cost and Overhead Cost is broken up for Current and Previous Levels?
 Where can I see the final PAC of the item?
 Does the PAC item cost will be same for all cost groups when the tolerance is achieved?
 Where do you get the info whether the tolerance is achieved or not?
 What is expected in the output file of the Periodic Absorption Cost Processor?
 What is the significance of various run options in running the PACP?
 Can we see the PAC on cost element basis, and if yes where do you see the PAC on element basis?
 Do we need to run the rollup cost processor in case of WIP completion items?
 At what level the cost is stored: Legal Entity/Cost Type/Cost Group/Period/Item?. Does it go further and stores at cost element or sub element level?
 Where can I see more details about the algorithm used by the Periodic Absorption Cost Processor?
 Where can I see detailed examples?
 How do I  drilldown  GL JOURNALS having source as Periodic Inventory?
 While transferring to GL from Periodic Average Costing (PAC):
 LIMITATIONS/COMMON ERRORS QUESTIONS
 Does the Periodic Absorption Cost Processor calculate the PAC across multiple LE interorg transfers, multiple SOB, multiple Currency?
 Where do we find the break up of Periodic Cost of the item?
 What will happen if there is WIP completion for an assembled item having BOM loop?
 What are the cases in which the Periodic Absorption Cost Processor will not achieve the tolerance? And what the user has to rectify to check?
 Cost Type: There is a scenario where there are multiple Cost types and one Cost Group. We have one transaction, and one particular PAC is open for the entire CT. Will the cost be reported in all the cost types?
 What does Eligible and Qualified item mean?
References

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