Potential Reconciliation issue for the INV Account in the 'INTRANSIT SHIPMENT FOB RECEIPT' Event (Doc ID 979694.1)

Last updated on NOVEMBER 03, 2016

Applies to:

Oracle Process Manufacturing Financials - Version 12.0.0 and later
Information in this document applies to any platform.
Executable:GMFXUPD - OPM Accounting Pre-Processor

Symptoms

Have only one Operating Unit (OU), so when they do an Internal Sales Order (ISO) between two Organizations they are always within the same OU.

The question is, are they able to do the Receipt postings for an ISO at the Receiving Organization's Item Cost rather than that of the Sending Organization?

If so, does this cause an Inventory reconciliation issue?

Note the following points

1. Single Operating Unit environment.
2. ISO between ORG1 and ORG2 `Intransit shipment FOB Receipt' at HCV.  Cost Method is PMAC.
3. Transferred an item "XXXXXX" from the ORG1 inventory org to the ORG2 inventory Org with an ISO transaction with quantity of 2698 kg.
4. The cost in the ORG1 sending plant is 69.9915 per kg.
5. For the Event Fiscal Policy of the Event Class `Deliver to or Return from Inventory', the Purchase Price Variance is set to "Book INV at receipt (No PPV)".
6. Using internal orders and the receiving Event Class is "Intransit Interorg Receipt for FOB Receipt".
7. In ORG2, the Actual Cost Process shows the cost of the receipt as 69.9915 i.e.the same as in sending Organization. This is as expected. The period cost in ORG2 is 71.89 per KG.
8. The postings are shown as

Sending side shipment (ORG1)
======================

2698 KG

JLT DR CR
=== == ==

ITR 188837.06
INV 183913.53
INV 4923.53

Cost is 69.9915 per kg

Entries in Receiving ORG2
========================

Recipient-side Intransit Interorg Receipt for FOB
2968 KG

JLT DR CR
=== == ==

INV 213368.69
IOP 188837.06
PPV 24531.62
Rounding 0.01

Cost 71.89 per KG.

Should there be any PPV and should the posting to inventory match that in ORG1?.

Cause

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