The Perpetual Weighted Average Costs Can Get Negative when Processing a Cost Adjustment as a result of a Price Difference between the Purchase Order and the Voucher on more Item Units than Are Currently in On-Hand Stock

(Doc ID 1997198.1)

Last updated on AUGUST 04, 2016

Applies to:

PeopleSoft Enterprise SCM Inventory - Version 9.1 to 9.2 [Release 9]
PeopleSoft Enterprise SCM Cost Management - Version 8.4 SP2 and later
PeopleSoft Enterprise SCM Manufacturing - Version 9.1 to 9.2 [Release 9]
Information in this document applies to any platform.
This Knowledge Document applies to Cost Management releases 9.1 and 9.2.

Symptoms

The Perpetual Weighted Average Cost of an Item can get negative. This happens when 1) a cost adjustment is recorded as a result of a price difference between the Purchase Order and the Voucher on more item units than are currently in on-hand stock, and 2) the 'Cost Accounting Creation' process (CM_CSTACCTG) (navigation: Cost Accounting, Inventory and Mfg Accounting, Create Accounting Entries, Cost Accounting Creation) is run with the 'Apply Perpetual Average Adjs' option.


Steps to replicate the issue:

  1. Create a Perpetual Weighted Average Cost Item.
  2. Initialize the cost by recording an Express Putaway for a quantity of 80,000 and a Cost of 0.0132 per unit.
  3. Create and fully receive a Purchase Order for a quantity of 100,000 and a price of 0.132 per unit.
  4. Run the 'Cost Accounting Creation' process (CM_CSTACCTG) > the Item Cost changes to 0.0792 = (0.0132*80,000 + 0.132*100,000) / (80,000+100,000)
  5. Create an Express Issue to bring back the on-hand stock to 90,0000.
  6. Create a Voucher for the Received quantity of 100,000 and change the Price to 0.0132 per unit.
  7. Match override the Voucher, post it, run the Landed Cost Extraction process and the CM_CSTACCTG process > the Item Cost is changed to -0.0396 = (0,0792 - (0.132 - 0.0132)).

Changes

 

Cause

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