Entire Batch Cost is Loaded Onto the First WIP Completion (Yield) Transaction
Last updated on NOVEMBER 16, 2016
Applies to:Oracle Process Manufacturing Financials - Version 12.0.0 and later
Information in this document applies to any platform.
In Release 12, if we Yield the Product Item of an OPM Production Batch in several small transactions, why is the cost of all the Ingredients loaded onto the first Yield / WIP Completion transaction, with the subsequent Yields getting zero cost allocated to them?
This doesn't cause a problem if all of the Yield transactions are in the same Period, as the calculated cost of the Product (Sum of Ingredient Costs divided by Total Product Yield) will be a sensible figure.
However, if (for example) :
- the Planned Batch Quantity is 1000
- all of the Ingredients are issued to the line-side
- only 10 of the Product are Yielded
- the period ends
.. the calculated Cost of the Product Item at the end of this Period will be massively over-stated.
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