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Q1. How this scenario can be handled in Oracle Purchasing, Inventory, Payables (without Quality module)?1 person found this helpful
I don't think there is any seeded way to handle this. You may have to modify the PO price manually or generate credit/debit memos after the receipt.
Q2. What would be the Inventory Cost of the item $ 100 or $ 90?
If you use std. costing, your cost will remain constant. Any variations will generate PPV
If you use avg. costing, the receipts will keep updating the cost.
Q3. What would be the Financial implications?
The financial implications depend on your costing method. If you have std. costing, you will generate lot of PPV. And your inventory valuation will be done based on the std. cost.
If you use avg. costing, then you will be able to get inventory valuation at a cost which is weighted avg cost.
Hope this helps,
Thanks Sandeep for detailed response.
Can you suggest if there is any other module available in Oracle EBS R12.1.x that can help us acheive the Quality Result based pricing? Someone suggested that Advance Pricing for PO can do this? I have not used it so I am not sure if this is true.
You may be onto something.
Advanced Pricing works to determine the price on the PO when you are creating the PO. You can configure all sorts of rules to arrive at the price.
You can try this
Define quality as an attribute and then derive the price based on the quality.
When you create a PO, the quality will have a default value (say 100%) and the price will be say $100.
AFTER receipt, you know the true quality. So go back to the PO and update the quality and reprice the line. Now Advanced Pricing will change the price.
I am not sure if this will work but it is worth a try.
See http://www.ncoaug.org/NCOAUG%20Training%20Day%20Feb%202009/Sundeep%20Sharma%20-%20Integrating%20Advanced%20Pricing%20with%20Purchasing%20in%20Release12.pdf for details on how to integrate Adv. Pricing with Purchasing.
Hope this helps,