LCM: Actual Cost Inventory Behavior when freight actual estimates don't match
Gurus,
Here is my business use case:
Evaluating use of Landed Cost Management in Actual Cost Environment
Scenario: PO created> Estimate Freight (Trade Operation) for PO line (say $500)> PO Received (e.g. 1000)> Part quantity (say 500) from the received quantity (1000) is issued before invoice is received and created in Oracle> Invoice shows freight $600 vs estimated $500
Questions:
What is the behavior of inventory valuation?
Will the remaining quantity of 500 get updated with the additional $100 of freight? If yes how does the system do this.
What will happen to the 500 quantity that was already used? Are there any adjustments that are triggered for those quantities? If yes, what would those be?