Cost Management - EBS (MOSC)

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Cost update for Item data migration

edited Apr 7, 2015 10:02AM in Cost Management - EBS (MOSC) 1 commentAnswered

Hi All,

Our client is implementing R12.1.3 and using Average costing. We are in process of migration 100K+ items in the Average cost inventory organizations. Only a few thousand items have onhand stock and while migrating onhand stock we will load the cost of such items where onhand is available. For rest of the items where onhand is not available, the average cost will be zero and as and when the users will start procuring such items, the system will start calculating the average cost of such items.

The problem is with ReOrder point planning for these 0 average costed items. Our client is using reorder point planning for almost all items. The reorder point planning method uses item cost as a parameter in EOQ (economic order quantity calculation) and hence for the items where we have kept the cost as 0 due to non onhand stock availablity, the ReOrder point planning program is not giving correct results.

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