Concurrent Program "Transfer Invoice Variance to Inventory Valuation" transferring TERV !
Hi,
We have cost management with average cost and an IPV account setup at the organization.
After running "Transfer Invoice Variance to Inventory Valuation" , this program did not take only the IPV amounts but also the ERV amounts generated at Invoice time.
LCM is not enabled and as per the below retrieved from an Oracle note we understood that ERV should be allocated to the PO Gain and Loss and not transferred to the inventory.
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LCM will adjust material costs by using the ERV amount generated at Invoice time.
In an LCM enabled Organization, if an ERV is generated at invoice time, this amount is transferred to