FAQ Periodic Average Cost and Periodic Absorption CostingOSTING (PAC/PACP/IPAC) Interorg Transactions in PAC
(Doc ID 559123.1)
Last updated on JULY 25, 2024
Applies to:
Oracle Cost Management - Version 11.5.10.2 and laterOracle Supply Chain Globalization - Version 11.5.10.2 and later
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? |
| What does Eligible and Qualified item mean? |
| References |