What's new in Customer Journeys?

Connect and learn more!
Does Retroactive Price Adjustment Update Actual Inventory Cost? — Cloud Customer Connect
You're almost there! Please answer a few more questions for access to the Applications content. Complete registration
Interested in joining? Complete your registration by providing Areas of Interest here. Register

Does Retroactive Price Adjustment Update Actual Inventory Cost?

Accepted answer
106
Views
1
Comments

Summary:

We are using average costing for our inventory items. If we create a receipt for an inventory item PO and later revise the PO unit cost, would the new cost be captured by costing?

For example,

Original PO price = $10, Qty = 1

Perform GRN

Dr inventory $10

Cr Receiving Inspection $10

Dr Receiving Inspection $10

Cr Accrual $10

Perform Retroactive Price Adjustment to $12

Dr Price Adjustment $2

Cr Accrual

Assume 0 beginning balance and this is the only transaction in the current period, will the inventory cost after Retroactive Price Adjustment be 10 or 12?

I understand that the Retroactive Price Adjustment will NOT update the inventory costing in EBS (according to the note below. I would like to confirm the behavior in Cloud. Thanks.

Howdy, Stranger!

Log In

To view full details, sign in.

Register

Don't have an account? Click here to get started!