1 Reply Latest reply: Oct 17, 2012 3:29 AM by Wanat Somboondumrongkul RSS

    Using Perpetual Weighted Average  (PPAC) as costing Method in R12.1.1

      I have setup a company having two operating units both using same ledger and same calendar. One of the operating unit is using Period Moving Average Costing (PMAC) and the other one is using Perpetual Weighted Average (PPAC). Both operating units have manufacturing organizations where batches are being created and cost of finish product is based on the ingredients consumption of the batch. My issue is that I cannot figure out how the cost is being computed for an item that has been produced from a production batch using the PPAC method. For the PMAC, I can see that it is using previous month balance and cost and compute it with current transactions data. But for PPAC, it is difficult to analyse the cost, and the only explanation from oracle note said that the calculations is based on all transactions within ALL period in the costing calendar. How will I calculate the cost for a specific item if the calendar started from July 2009. Should I compute the cost for an item for all transaction from July 2009 until April 12 ? Should I keep different calendar for each financial year or only one calendar is enough?