How To Cost a Perpetual Weighted Average Costed Item when there Is No Cost in the PS_CM_PERPAVG_COST Table with a Prior Date (Doc ID 1553009.1)

Last updated on AUGUST 04, 2016

Applies to:

PeopleSoft Enterprise SCM Cost Management - Version 8.4 SP2 and later
PeopleSoft Enterprise SCM Inventory - Version 8.9 and later
PeopleSoft Enterprise SCM Manufacturing - Version 8.9 and later
Information in this document applies to any platform.
This Knowledge Document applies to Cost Management releases >= 8.9

Goal

As a general rule, customers will generate a Putaway transaction for Items prior to attempting to consume (deplete) them. In some environments however customers allow Inventory to be driven negative during a depletion, since they know that eventually there will be a putaway transaction entered to 'cover' the depletion.

Unfortunately this can lead to a fairly rare but problematic situation where a brand new Item which is Perpetual Weighted Average costed has a Depletion transaction entered against it prior to its very first Putaway.

Here is why this is a problem:

The first Putaway establishes the Item's Perpetual Weighted Average cost in the PS_CM_PERPAVG_COST table. This table is continuously updated as new Putaways, with potentially different costs, are transacted.

Cost Management attempts to determine the appropriate cost for the Item depletion by taking the last entry in the PS_CM_PERPAVG_COST that was created PRIOR to the date of the depletion. In the above scenario however, there is no cost in the table prior to the depletion. As a result, the depletion is not costed, and the Costing process generates the following message "depletions could not be costed due to no perpetual average cost" in the 'Pending Transactions' page (navigation: Cost Accounting, Analyze Inventory Accounting, Pending Transactions).

Solution

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