(Doc ID 2411948.1)

Last updated on JUNE 15, 2018

Applies to:

PeopleSoft Enterprise SCM Cost Management - Version 8.4 SP2 and later
Information in this document applies to any platform.


On : 8.4 SP2 version, Transaction Costing and Accounting Lines

Landed Cost transactions for Freight on Standard Cost Items Not Posting Correctly

We are trying to implement the Landed Cost functionality. We are using Cost Management with Standard Cost/FIFO for all inventory items. All PPV1 and PPV2 transactions are booking correctly for the Materials, but the PPV2 for the Landed Cost Freight element appears to ignore the original transaction for the Cost Variance at Putaway, resulting in overstating the Cost Variance and incorrectly booking to the Accrual account. We have tested this several times and also worked with an outside People Soft consultant to try to resolve the issue. In all cases, the tests resulted in incorrect results. Our consultant indicated he believed it was a bug that may have been resolved in 9.2; however, we cannot find any mention of a bug on the Oracle Support site. We done extensive research in People Books trying to determine if there is a configuration issue, but have not found any documentation that would suggest our configurations are incorrect. It is possible that our Transaction Accounting Rules for the 600 Landed Cost Element are incorrect; however, the PPV1 transactions booked at Putaway are correct.

Our fiscal year begins July 1, and we are hoping to implement Landed Cost at that time. We need to resolve this issue before loading all of our new Standard Costs prior to July 1. We would like to request a conference call and/or webex with one of your Resources to help us to resolve this issue.

No PPV2 should be created.

The issue can be reproduced at will with the following steps:
1. Create PO with freight (landed cost component)
2. Dispatch and receive it
3. Run Cost Accounting creation process
4. It creates the entries for freight
5. Create voucher and post it
6. Run Landed cost extract process
7. Run Cost Accounting creation process
8. It creates PPV2.




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