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Incorrect Costs For Wip Assembly Return To Discrete Job Using Average Costing (Doc ID 788680.1)

Last updated on AUGUST 24, 2021

Applies to:

Oracle Cost Management - Version to 12.1.3 [Release 11.5 to 12.1]
Information in this document applies to any platform.


Find using the average cost method and our orgs are Project Manufacturing enabled. WIP Assembly returns to a job are supposed to be costs at the average unit value for completions from that job.
Material was issued to the job in the AUG-08 period at $2,774.81 and the job was fully completed (8 ea) at the same total cost in the same period.
In the following period (SEP-08), OSP resource costs of $1800 were received to the job. In an attempt to absorb this additional cost, all 8 were returned using the WIP Assembly return
transaction then all 8 were completed again using WIP Assy Completion transaction. Oracle costed the WIP assembly return at $0 cost.
This is incorrect. It should have returned 8 at $2,774.81 for a unit cost of $346.85. Then, the 2nd WIP assembly completion was costed at $4,574.81 ($2,774.81 + $1800) Essentially, the $2,774.81 material cost on the job was absorbed to inventory twice

Expect ...8 returned at $2,774.81 for a unit cost of $346.85

-- Steps To Reproduce:
The issue can be reproduced at will with the following steps:
1. Open a standard discrete job in a manufacturing org using average cost method.
The routing should have an OSP resource requirement. the BOM should have one costed material component.
2. Issue material to the job and fully complete the job in one accounting period.
3. Close the accounting period
4. Receive OSP resource costs in the next period.
5. Do a WIP assembly return of all quantity completed. Then, do another final WIP assy completion


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