Is The Transfer of Invoice Price Variance Not

Updating Item Cost (Doc ID 763452.1)

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Modified:Jul 5, 2012 Type:HOWTO





In this Document

Goal

Fix

References

APPLIES TO:
Oracle Cost Management - Version 11.5.10.0 and later
Information in this document applies to any platform.
GOAL
How to investigate why the Invoice Price Variance (IPV) is not transferring to the Item
Cost in an average costing organization.

FIX
Definition of Invoice Price Variance (IPV):
-------------------------------------------------
Invoice Price Variance is the difference between the purchase price and the invoice
price paid for a purchase order receipt. Invoice Price Variances are generated when the
invoice is processed and matched to the Purchase Order (PO) line items. Upon invoice
approval, Oracle Payables automatically records this variance to both the invoice price
variance and exchange rate variance accounts. IPV is determined and recorded the
same under standard and average costing.
When the Transfer IPV routine is run from Cost Management, the IPV will update the
average cost as an average cost update to Inventory. This is created as an interface
transaction in MMTT (MTL_MATERIAL_TRANSACTIONS_TEMP) transaction which will be
processed by the Transaction Manager.
To Investigate:
1. Check the steps being carried out to ensure all the steps are correct and the
transaction manager is running.

2. Check for any pending transactions in MMTT ie. select * from
MTL_MATERIAL_TRANSACTIONS_TEMP;.

3. Check the Invoice Price Variance Report to ensure a variance exists.

4. Check the version of CSTPIPVB.pls is up to date.

5. Check the column 'line_type_lookup_code = ITEM' (this will only occur for Item
types), and the column 'inventory_transfer_status' is changing to NULL from 'N' in table
AP_INVOICE_DISTRIBUTIONS_ALL.

REFERENCES
BUG:7830156 - TRANSFER IPV TO INVENTORY IS NOT HAPPENING


Transfer Invoice Variance To Inventory Valuation
Report Does Not Perform The Transfer (Doc ID
1467471.1)
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Bottom


Modified:Nov 22, 2012 Type:PROBLEM





In this Document

Symptoms

Cause

Solution

References

APPLIES TO:
Oracle Cost Management - Version 12.1.3 and later
Information in this document applies to any platform.
SYMPTOMS
On : 12.1.3 version, Reports Issues


The IPV transfer to inventory valuation process runs with a status of completed and
normal. However, the transfer never occurs.

Expect for material transaction to be costed after IPV transfer.

The issue can be reproduced at will with the following steps:
We have recently upgrade to 12.1.3 (test) and we are trying to use the Transfer Invoice
Variance to Inventory Valuation process as we do in 11.5.10.2
. Create inventory transactions that result to IPV
. Run the Invoice price variance report and view candidates for IPV transfer to
inventory
. Run the Transfer Invoice Variance to Inventory Valuation. parameters and log file
attached. The process completes normal
. View material transactions but it does not display the average cost update which is the
result of runniing Transfer Invoice Variance to Inventory Valuation.
. The Cost Manager is running. Other transactions such as receipts, get recoded in the
material transaction table and get costed.
CAUSE
Move Order Manager was not active
SOLUTION
Proceed with the following in a Test Instance first, where this issue is replicated:
1.- Connect to Inventory Responsibility.
2.- Go to Setup>Transactions>Interface Managers.
3.- Please confirm the following Managers are active, Material Transaction and Move
Transaction.
4.- Re-test this situation and in case you are satisfied with the resolution then move to
Production Instance.
REFERENCES
NOTE:980525.1 - IPV DOES NOT UPDATE ITEM COST IN INVENTORY
NOTE:1271059.1 - Item Frozen Cost Is Not Updated
NOTE:459991.1 - Transfer Invoice Price Variance FAQ
NOTE:1284942.1 - Invoice Price Variance doesn't Update Item Cost In Inventory Organization




Related




Products

Oracle E-Business Suite
>
Manufacturing
>
Discrete Manufacturing
>
Oracle Cost Management
>
Inventory Costing
>
Inventory
Standard Costing



Keywords


AVERAGE COST UPDATE
;
COST
;
INVENTORY TRANSACTIONS
;
INVENTORY VALUATION REPORT
;
INVOICE
;
IPV
;
MATERIAL
TRANSACTIONS
;
MOVE ORDER
;
VARIANCE


Transfer Invoice Price Variance FAQ (Doc ID
459991.1)
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Bottom


Modified:Mar 23, 2013 Type:HOWTO





In this Document

Goal

Fix

APPLIES TO:
Oracle Cost Management - Version 11.5.10.0 to 11.5.10.3 [Release 11.5]
Information in this document applies to any platform.
***Checked for relevance 23-March-2013***


GOAL
Q1. Customer is testing the process Transfer Invoice Price Variance and need
clarification on the transaction date that occurs for average cost update.
Ran test to include all invoices for one particular sku. When the process
completed noticed that it had picked up two old transactions from a few years
back where there was a variance between invoice price and purchase order price.
Is this expected behavior.



Q2. Is the transaction date that it gave these two transactions when they view
them under View Transactions/Material Distributions.


Q3. The transaction date is 30-Jul-2007, the first date of the current open
period.
Is this expected behavior since these two transactions are from years back?
Does the transaction date default to the first date of the current period if
the prior period is closed?



Q4. Is there a way to run this process for all invoices as of a certain date?



Q5. What is the invoice cut-off date parameter in Transfer Invoice Variance?
If you enter a date in this parameter does it process everything before, or
after, the entered date?
FIX
A1. Yes, this is expected behavior.

A2. Yes the transaction date is the date which they view under View
Transactions/Material Distributions.

A3. Yes,After patch for Bug 4117301 the transaction date is taken as first
date of the current period if the prior period is closed.

A4. It is possible to run this process up to a date by providing cutoff date .
It will take all the invoices which have accounting date less than this
cutoff date.
If the customer doesn't want few Invoices to be considered for transfer
they can achieve this by updating the column 'inventory_transfer_status' in
table ap_invoice_distributions_all to NULL from 'N'. And then these
invoice distributions would not be considered for the invoice price
variance transfer.

A5. It processes everything before this date.

Invoice Transfer Variance Confirm If Amount
Transferred If Receipted Goods Are Already Issued
(Doc ID 1206888.1)
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Modified:Apr 21, 2013 Type:HOWTO





In this Document

Goal

Solution


This document is being delivered to you via Oracle Support's Rapid Visibility (RaV)
process and therefore has not been subject to an independent technical review.
APPLIES TO:
Oracle Cost Management - Version 12.1.2 and later
Information in this document applies to any platform.
.
***Checked for relevance 21-Apr-2013***
GOAL

Request: Invoice Variance Transfer.
This program will transfer the variance posted to GL from the PO/Invoice match to
inventory. We require clarification regarding the following:
1. What happens to the variance, where some of the items have already been issued
out of inventory and charged to Cost of Goods sold, prior to the Invoice Variance
Transfer program being run?
- Does the whole variance amount still get charged against the remaining items in
inventory (even though the items have now been issued and no longer in inventory)?
- Does the program only transfer the variance amount only relating to the items still in
inventory?
- For the items that were issued and become COGS - what happens to the invoice
variance relating to those items when the program is run? Does it still get allocatted to
inventory, or does it remain
in GL unallocated?

Steps to Reproduce :
Enter PO with cost X.
Receipt PO.
Enter Invoice and Match to PO - but with cost Y.
Create Accounting and Transfer Invoice to General Ledger
Go to Cost Management and run program for Invoice Variance Transfer.

Example:
2 Goods receipted are matched to invoice, and create an invoice price variance of $20
($10 per item). If one of the items has already been shipped as part of an order and
becomes Cost of Goods Sold, BEFORE the purchase receipt is matched to the invoice
what happens?
When running the Invoice Price Variance program,
(a) does the full $20 still get applied to the inventory value (even though only one of
the items is still in stock)? OR
(b) does only $10 get applied to the inventory value (being the remaining item still in
inventory)? If (b) is the case (ie only $10 applied), what happens to the remaining $10
of the invoice price variance relating to the item part of Cost of Goods Sold? (Does it
just stay in GL, and has to be journalled manually - or does it get transferred to another
account e.g. Cost of Goods Sold?)
SOLUTION

Please refer to the User Guide:
Oracle Cost Management
User's Guide
Release 12.1
Part No. E13635-02

'Transferring Invoice Variance' section on Page - Average Costing 5-21.

Invoice Price Variance
In general, invoice price variance is the difference between the purchase price and the
invoice price paid for a purchase order receipt. Purchasing reports invoice variance.
Upon invoice approval, Payables automatically records Invoice Price Variance, to both
invoice price variance and exchange rate variance accounts.

Please note that, The transfer process picks up only invoices that have been posted to
GL to ensure that
the invoices are approved for payment, and that variances can be added back to
inventory.

'Automatic Update' option in Transfer Invoice Variance to Inventory Valuation:
If you choose Yes, then the process automatically updates the inventory.
If you choose No, then the process creates cost update open interface
transactions and submits them to the Inventory Interface Manager. You can
then run the Invoice Transfer to Inventory Report, review it, and submit
transactions using the Inventory Transaction Open Interface manager.


Regarding the query in the example given above, currently (a) happens, that is the full
$20 gets applied to the inventory value.
But after 12.1.1 the average cost update has been enhanced so that it can do (b) with
remaining $10 going into expense account specified in transaction.
To implement (b) in IPV transfer an enhancement would be required in IPV transfer.

eos