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Acquisition Cost Adjustment impact for Standard Costing

in Costing 4 comments

Summary:

We want to understand the impact of Acquisition Cost Adjustment in Cost Accounting for Standard cost

Content (please ensure you mask any confidential information):

As per the Oracle document link (https://docs.oracle.com/en/cloud/saas/supply-chain-and-manufacturing/26d/fapma/acquisition-cost-adjustment.html), the impact of acquisition cost adjustment on standard cost are always expensed out as a purchase price variance up to the extent of quantity delivered.

We have enabled the profile option 'ORA_CMR_IGNORE_AP_INV_VAR_ALL' to Yes so that IPV will impact Receipt and Cost Accounting.

After the PO is received, Receipt and Cost Accounting Distributions are generated. Followed by that we generated IPV from invoice and executed the 'Transfer Cost to Cost Management' program to bring invoice related adjustments in Costing. But after executing the cost distribution, there is no Acquisition Cost Adjustment transaction that is getting created for the PO. Is there anything we are missing? What should be the ideal behavior?

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