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transfer order between standard costing and average costing orgs

Accepted answer
edited Mar 23, 2021 2:43PM in Costing 2 comments


how can i find what accounting entries are created by cost management when transfer order moves items between orgs with different costing methods


i'm curious how Oracle handles accounting and costing when item moves between inventory orgs with different costing methods


for example, item A from inventory org M1 (standard costing, cost $100, markup 5%) is shipped to inventory org M2 with average costing (current avg cost is $90 for item A)


would receipt at M2 be:

1. $90 in valuation; $5 in profit-in-inventory (5% from $100); and $10 in cost variance (to make up to $105)

2. or it would be: $100 in valuation and $5 in in profit-in-inventory (5% from $100)


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