Last updated on MARCH 04, 2017
Applies to:Oracle Cost Management - Version 184.108.40.206 to 220.127.116.11 [Release 11.5]
Information in this document applies to any platform.
***Checked for relevance on 01-APR-2015***
User is creating inter-company requisitions. It posts differences between standard cost and transfer price to Profit in Inventory.
They can not see in the process how the Profit in Inventory (PII) ever gets relieved when the product is sold. It seems to always grow.
There is a place in the shipping network set up to put a profit in inventory (PII) account.
When the inter-company request is shipped the system is debiting the PII account for the difference in the transfer price and the standard cost of the receiving entity.
So as long as that product is in their inventory that is correct.
However once they sell or consume the product the profit in inventory (PII) should leave the PII account which is an inventory account and go to revenue.
User can not see how or where the system is going to relieve the PII account.
If the system does not do it then how would they know to do a Journal entry?
Is there a report to tell that?
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