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Transition From Standard Costing To Actual FIFO Costing Impact On The Enterprise Structure Cloud Customer Connect
Transition From Standard Costing To Actual FIFO Costing Impact On The Enterprise Structure Cloud Customer Connect
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Summary:
Customer has Standard cost already implemented on their current System, they have plans in the future to
change the costing method to Actual(FIFO) Costing, will this have any impact on the current Enterprise
Structure, if so then how can this be managed?
Content (required):
Customer has Standard cost already implemented on their current System, they have plans in the future to
change the costing method to Actual(FIFO) Costing, will this have any impact on the current Enterprise
Structure, if so then how can this be managed?
1 of 6 18/11/22, 08:19
Transition from Standard Costing to Actual (FIFO) Costing Impact on t... https://community.oracle.com/customerconnect/discussion/comment/5...
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Answers
The choice of cost method should not aLect the enterprise structure, ideally. Can you share
some additional details on the business rationale, use case, some details on your current setup,
and timelines by email to srini.raghavan at oracle.com?
Regards,
Srini
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A word of warning. Once you go live with Oracle Cloud, and an item has been costed in Oracle
Cloud, the item cost proPle (which determines the cost method) is locked. It cannot be
changed. In other words, you cannot change the cost method of an item once it's costed. You
have to create a new item.
2 of 6 18/11/22, 08:19
Transition from Standard Costing to Actual (FIFO) Costing Impact on t... https://community.oracle.com/customerconnect/discussion/comment/5...
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Unless a new cost org/cost book association (enterprise structure) can be leveraged in
customer implementation context so that existing items have a diLerent cost method (Actual)
on a new cost book (?)...
This is possibly why Srini requested more details about current setup and timelines
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@Sam - You are right. Once a cost proPle has been used in a transaction, one cannot change
cost method in that cost proPle. Creating a new set of items is an option, or like Thierry
suggested, we can create a new cost book with new set of cost proPles and reprocess all the
existing transactions in the new cost book. Depending on the business requirement, number of
items, and how long the customer has been using standard, we can devise an action plan for
this.
Srini
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3 of 6 18/11/22, 08:19
Transition from Standard Costing to Actual (FIFO) Costing Impact on t... https://community.oracle.com/customerconnect/discussion/comment/5...
@Srini
It is completing a transition that customer started in previous project to fully move from legacy
system into INV Cloud.
As part of initial conPguration and process, they enabled Standard cost (loaded into inv cloud
from legacy) to support intercompany ^ows (worth to mention that txns are mirrored from
legacy), so now they want to move into a more accurate costing (Actual/FIFO) to also start
doing inventory valuation at INV Cloud without impacting enterprise structure and PIM (eg. No
need of new inv or item orgs or new items)
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Since there are transactions created for these items with standard cost, you will not be able to
change the cost method for these items. There is no out of the box capability to support such
changes, though it is in the roadmap (idea reference: h_ps://community.oracle.com
/customerconnect/discussion/comment/281579).
Srini
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4 of 6 18/11/22, 08:19
Transition from Standard Costing to Actual (FIFO) Costing Impact on t... https://community.oracle.com/customerconnect/discussion/comment/5...
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5 of 6 18/11/22, 08:19
Transition from Standard Costing to Actual (FIFO) Costing Impact on t... https://community.oracle.com/customerconnect/discussion/comment/5...
6 of 6 18/11/22, 08:19