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FUSION: CST: FAQ: Perpetual Average Costing (Doc ID 1303594.1)

Last updated on MAY 06, 2022

Applies to:

Oracle Fusion Cost Management - Version 11.12.1.0.0 and later
Oracle Fusion Cost Management Cloud Service - Version 11.13.19.10.0 and later
Oracle Fusion Inventory Management Cloud Service - Version 11.13.19.10.0 and later
Oracle Fusion Manufacturing Cloud Service - Version 11.13.19.10.0 and later
Information in this document applies to any platform.

Purpose

This FAQ is meant to address and understand perpetual average costing method at a high level: what it is, how often it's calculated, and how some unusual scenarios are handled.

Questions and Answers

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In this Document
Purpose
Questions and Answers
 What is the average costing method what sort of transactions included in calculation?
 How often is the average cost calcuated?
 If the transaction sequence is so important, how should transactions be sequenced?
 What if a transaction is entered late into the system? How does Fusion Cost Management re-calculate the cost for backdated transactions?
 What if an invoice price changes for an item after it's been issued? I wouldn't have any inventory to absorb the absorb the adjustment.
 What happens if the quantity goes negative in the system due to out-of-order transactions?
 Do Return-to-Vendor (RTV) transactions re-average the cost? If you're canceling a costed receipt, surely that needs to be backed out?
 Is it possible in Use average cost method for all cost org to Roll up the cost for finished good item which has a item structure with purchased items?

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