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How Can InterUnit Transfer Costs Between Issue and Putaway Be Different? (Doc ID 657117.1)

Last updated on MARCH 24, 2022

Applies to:

PeopleSoft Enterprise SCM Cost Management - Version 8.4 SP2 and later
PeopleSoft Enterprise SCM Manufacturing - Version 8.8 and later
PeopleSoft Enterprise SCM Inventory - Version 8.8 and later
Information in this document applies to any platform.

This document was previously published as Customer Connection Solution 201050877


When creating and processing an InterUnit Transfer, the Transfer Cost at Issue and at Putaway are different. Why?

The Deplete Cost Method is 'Perpetual Weighted Average' and the Receipt Cost Method is 'Actual Cost'.

The scenario is as follows:

  1. Create an InterUnit Transfer with no Transfer Price and no Price Markup (Item Perpetual Average Cost is $150 in the source Business Unit).
  2. Reserve the InterUnit Transfer.
  3. Generate a Pick Plan.
  4. In the 'Picking Feedback' page, select the 'Confirm' and 'Autoship' check boxes.
  5. Create now an Express Putaway in the source Business Unit so that the Item Perpetual Average Cost is changed to $225
  6. Ship the InterUnit Transfer and deplete the quantity (in the PS_TRANSACTION_INV table, the Transfer Cost for the Depletion transaction is $150 (the Cost at the picking time)).
  7. Receive and a Putaway the InterUnit Transfer (in the PS_TRANSACTION_INV table, the Transfer Cost for the Putaway transaction is $150).
  8. Run the Costing processes.
  9. Check the PS_CM_DEPLETE_COST and PS_CM_RECEIPT_COST tables.

The values for the CM_UNIT_COST field are different between these tables.

   - PS_CM_DEPLETE_COST is at $225, this is the Cost after the Putaway.
   - PS_CM_RECEIPT_COST is at $150, this is the Cost of the Picking stage.

There is a difference between these 2 Costs.


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