Average Cost

Inventory Transaction Receipt Cost (based on PO)

Cost Inv
ItemTransaction Org Org Lot Quantity ItemTransaction Unit Cost
A PO Receipt1 OrgA OrgA 1 7 A PO Receipt1 $10
A PO Receipt2 OrgA OrgA 1 8 A PO Receipt2 $11
A PO Receipt3 OrgA OrgA 2 9 A PO Receipt3 $12
A SO Shipment1 OrgA OrgA 2 8

What is the item’s Valuation Structure? Average Cost

Cost Org + Inventory Org $11.08
Org A + Org A + A $10.00
$10.53 (7@$10
(15@$10+ .53
8@$11) / 15 / 24
+ 9@$12)

Inventory Valuation Units Shipments Inventory Account

Org A + Org A SO Shipment1 -8 7 @ $10
PO Receipt3 +9 8 @ $11
PO Receipt2 +8 9 @ $12
-1 7 @ $11.08
PO Receipt1 +7 -7 1 @ $11.08

COGS
7 @ $11.08
1 @ $11.08

Copyright © 2015, Oracle and/or its affiliates. All rights reserved. |

Average Cost (at lot level)
Inventory Transaction Receipt Cost (based on PO)
Cost Inv
ItemTransaction Org Org Lot Quantity ItemTransaction Unit Cost
A PO Receipt1 OrgA OrgA 1 7 A PO Receipt1 $10
A PO Receipt2 OrgA OrgA 1 8 A PO Receipt2 $11
A PO Receipt3 OrgA OrgA 2 9 A PO Receipt3 $12
A SO Shipment1 OrgA OrgA 1 8

What is the item’s Valuation Structure? Average Cost

Cost Org + Inventory Org + Lot Org A+Org A+Lot1+A $10.53
$10.00 (7@$10 + 8@$11) / 15
Org A+Org A+Lot2+A $12.00
Inventory Account
Inventory Valuation Units Shipments 7 @ $10
Org A+Org A+Lot1 Org A+Org A+Lot2 SO Shipment1 -8 8 @ $11
PO Receipt3 +9 9 @ $12
7 @ $10.53
PO Receipt2 +8 -1 1 @ $10.53
PO Receipt1 +7 -7
COGS
7 @ $10.53
1 @ $10.53
Copyright © 2015, Oracle and/or its affiliates. All rights reserved. |
Average Cost (at lot level, ship from Lot 2)
Inventory Transaction Receipt Cost (based on PO)
Cost Inv
ItemTransaction Org Org Lot Quantity ItemTransaction Unit Cost
A PO Receipt1 OrgA OrgA 1 7 A PO Receipt1 $10
A PO Receipt2 OrgA OrgA 1 8 A PO Receipt2 $11
A PO Receipt3 OrgA OrgA 2 9 A PO Receipt3 $12
A SO Shipment1 OrgA OrgA 2 8

What is the item’s Valuation Structure? Average Cost

Cost Org + Inventory Org + Lot Org A+Org A+Lot1+A $10.53
$10.00 (7@$10 + 8@$11) / 15
Org A+Org A+Lot2+A $12.00
Inventory Account
Inventory Valuation Units Shipments 7 @ $10
Org A+Org A+Lot1 Org A+Org A+Lot2 SO Shipment1 -8 8 @ $11
PO Receipt3 +9 -8 9 @ $12
8 @ $12.00
PO Receipt2 +8
PO Receipt1 +7
COGS
8 @ $12.00

Copyright © 2015, Oracle and/or its affiliates. All rights reserved. |