Hi Marica,

I was trying to explore the   PAC costing.. can you please  confirm,  the file which you attached describes the way PAC works.. in Inventory Transfers ?

Can you please share any  real time test case scenario , how to work on PAC costing .

Thanks & Regards

Jagan

Hi

The periodic costing methods are Periodic Average Costing (PAC) and Periodic Incremental LIFO.  Periodic costs are based on purchase invoice price.  They may be shared across multiple inventory orgs within the same Legal Entity.  You can choose to use periodic costs for inventory valuation in the GL, but not if you use perpetual costs for this purpose

All costs types can be reported on and can be used as the basis for 'what if' calculations and comparisons.

Periodic Average Cost (PAC) is different than average costing.
In PAC,
1. All the cost owned transactions (PO Receipts, WIP Assembly completions, Misc. receipts with unit cost )  in a given period are processed to obtain PAC item cost. 2. All the cost derived transactions (SO Issue, Misc. Issue) are assigned with PAC item cost calculated at the end of PAC period.

In Average Costing, issue transactions will have different average cost stamped based on the time at which issue transactions were created. PAC has its own setups.

Hi Samir,

Is there any document, which walk us through the setups and how to transact in PAC and how Journal Entries flow.. in a typical PAC environment... especially the Inventory transfers in specific.

Thanks & Regards

Jagan

Hi

Please review the following documents:

559123.1 FREQUENTLY ASKED QUESTIONS – PERIODIC AVERAGE COST

                         AND PERIODIC ABSORPTION COSTING (PAC/PACP/IPAC):

245487.1 Periodic Actual Cost Processing Logic: An Oracle White Paper

Doc ID 1460062.1 Periodic Average Costing - Setup and Workflow

Note.397440.1 script to check PAC setup

Note.759522.1 How PAC process transactions and Difference between PAC & Average Costing

Hi  Samir,

I have reviewed these earlier, but no where I could find the  Accounting flow.. and how valuation is done for Inventory Transfer in PAC .

thanks & regards

Jagan