Item Repair Process

Subject: Best Practice for External Repair Process with Capitalization of Repair Cost into Inventory Item under Average Costing

Hello Experts,

We are looking for guidance on the best-practice approach in Oracle Fusion Cloud for managing external repairs of inventory items while capitalizing repair costs into the inventory value of the repaired item.

Current Business Process

1. An inventory item is identified as requiring repair.
2. The user initiates a repair request through a Purchase Requisition.
3. A buyer creates a Purchase Order to an external repair vendor.
4. The item is physically sent to the vendor for repair.
5. The vendor performs the repair and charges a repair fee.