Why Are PPV and Material O/H Absorption Accounts Hit For Internal Order Intransit Shipment Transactions?

(Doc ID 950027.1)

Last updated on APRIL 09, 2018

Applies to:

Oracle Cost Management - Version to 12.2.7 [Release 11.5 to 12.2]
Information in this document applies to any platform.
*** Checked on Relevance on 09/APR/2018 ***


When an Internal Sales Order is done to transfer goods from one Inventory Org to another within the same Operating Unit, you are finding that the PPV and Material Overhead Absorption Accounts are being hit in the Receiving Org for the INT ORDER INTR SHIP transaction type.

Item Costs are identical in both Organizations and the relevant Shipping Network record is in place.

Item Cost is
Mat- 100

On Shipment it hit
Intransit Dr 120
Inventory Cr 120
PPV Dr 20
MAT-OH Absortion Cr 20

Why are the PPV and MAT-OH accounts being hit?


Sign In with your My Oracle Support account

Don't have a My Oracle Support account? Click to get started

My Oracle Support provides customers with access to over a
Million Knowledge Articles and hundreds of Community platforms