Perpetual Average Cost Change During Subinventory Transfer (No New Receipts)

Summary:

Hi Experts,

We are currently encountering a behavior in Oracle Fusion Cloud Cost Management (Perpetual Average Costing) that we would like to clarify, as it seems inconsistent with our understanding of average costing principles.

• Module: Oracle Fusion Inventory & Cost Management

• Cost Method: Perpetual Average Cost

• Cost Level: At Inventory Organization / Valuation Unit level

• Transaction Type: Subinventory Transfer

• Expected Behavior :

• Based on Oracle documentation, we understand that:

• - There is only one average unit cost per item per inventory organization, shared across all subinventories.

• - Average cost is calculated from all prior receipts (e.g., PO receipts).

• - If no new receipts or cost adjustments occur, the average cost should remain stable.