Price Variance Issue in Drop Ship Returns Due to Single Return Inventory Cost Organization — Cloud Customer Connect
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Price Variance Issue in Drop Ship Returns Due to Single Return Inventory Cost Organization

We are facing a price variance issue in Oracle Fusion related to drop ship returns. The scenario is as follows:

  • We have two drop ship suppliers, each with Blanket Purchase Agreements (BPAs) for the same items, but with different pricing:
    • Supplier A: Used for US addresses
    • Supplier B: Used for non-US addresses
  • When items are returned, they are routed to a single return inventory organization, which is tied to a cost organization that uses only standard cost.
  • This setup causes a price variance between:
    • The actual cost at the time of shipment (based on BPA pricing)
    • The standard cost used during return processing

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