IJ11462: INCORRECTLY PRORATE SERVICE GIVES INCORRECT LOADED COST AND AVERAGE COST IN INVENTORY AFTER RECEIVING AND RETURNING ITEM

APAR status

• Closed as program error.

Error description

• Problem Description:
  If you have a PO with Item and Service line with Prorate
  Service? Checked
  Maximo incorrectly prorate service: which gives incorrect
  Loaded Cost and Average Coast in Inventory after receiving,
  returning Item to vendor.
  STEP-BY-STEP
  In this scenario we will not use Invoice to do the prorate
  service and follow the scenario below to have the prorate done
  when the Item and Service are received.
  Prerequisite: You need to run the following SQL in order to
  update MAXVARS:
  that way the prorating takes place automatically when receiving
  the Item and the Standard Service without the need of invoicing.
  UPDATE MAXVARS SET VARVALUE = 0 WHERE VARNAME = 'INVOICEMGT'
  AND ORGID = 'EAGLENA';
  COMMIT;
  Restart the MXServer.
  1- Go To Financial -> Exchange Rates Application
  - Select EUR to USD and change the Exchange Rate to 10 -it is
  easier to see the calculation
  2- Go To Inventory -> Item Master Application
  - Create a new item with the following
  - Item: TEST01. Issue and order unit are EACH. For CENTRAL
  storeroom. Change status to active for all levels.
  3- Go to Purchasing - PO Application
  - Create a new PO - PO# 1183
  - Select a vendor with no taxes associated with it.
  - Under Details section - Change Currency from USD to EUR (for
  the purpose of this test)
  - Click on PO Lines Tab. Click New Row
  - Select Item TEST01 created in step 2
  - Unit Cost 1000.00
  - Storeroom Central
  - Save Records
  4- Click on New Row and add
  - Line type:Standard Service
  - Item Field: Select any available service: INSTALLATION in
  this scenario
  - Unit Cost: 100.00
  - fill the GL Debit Account field (any will do)
  - Click Save Records
  - Under Line Item Section - Prorate Service? Checked
  - Save
  5- Click on PO tab
  - Note / Check total Cost: 1,100.00
  - Change Status to approved - APPR
  6- Go To Purchasing -> Receiving Application
  - In the PO field put your PONUM created in step 3 and bring
  the record
  - Click on Select Ordered Item
  - Select the Item and click OK button
  - Click on Service Receipts tab
  - Click on Select Ordered Services button
  - Save Records
  7- Click on Material Tab
  Click on the Go To arrow next to Item field -> Go To Inventory
  - Current Balance = 1.00 which is OK
  - Under Inventory Cost section -> Average Cost: 11,000.00
  - Under More Action -> click on View Inventory Transaction
  Expend of line Receipt
  - Loaded Cost: 11,000.00
  All the information are correct.
  - Click OK button to close the View Inventory Transaction window
  - Click Return from upper right corner - You will be back in
  Receiving Application.
  8- Back to Receiving Application
  - In the PO field put your PONUM created in step 3 and bring
  the record
  - Click on Select Item for Return button
  - Select the Item and click OK button
  - Click Save Records
  NOTE: now it show Receipts: PARTIAL which is OK
  9- Click on Material Tab
  Click on the Go To arrow next to Item field -> Go To Inventory
  - Under Inventory Cost section -> Average Cost: 11,000.00
  - Under More Action -> click on View Inventory Transaction
  Expend of line Receipt
  - Loaded Cost is -20,000 (Not correct)
  - Click OK button to close the View Inventory Transaction window
  - Click Return from upper right corner - You will be back in
  Receiving Application.
  10- Back to Receiving Application
  - In the PO field put your PONUM created in step 3 and bring
  the record
  - Click on Select Ordered Item button
  - Select the Item and click OK button
  - Click Save Records
  - From the Item field click on the Go To Icon and Go To ->
  Inventory
  - Under Inventory Cost section -> Average Cost: 101,000 which
  is incorrect
  RESULT:
  The average cost keeps being multiplied after receiving the
  Item again. Maximo keeps increasing the Loaded Cost which
  result to wrong Avg cost and Wrong Financial Figures.
  Expected Result:
  Maximo should remove the loaded coast after 1st return and
  bring back the first loaded coast as verified in step 7
  REPORTED IN VERSION:
  Maximo Asset Management 7.6.0.9
  

Local fix

• N/A
  

Problem summary

• ****************************************************************
  * USERS AFFECTED:                                              *
  * MAXIMO                                                       *
  ****************************************************************
  * PROBLEM DESCRIPTION:                                         *
  * INCORRECTLY PRORATE SERVICE GIVES INCORRECT LOADED COST AND  *
  * AVERAGE COST IN INVENTORY AFTER RECEIVING, RETURNING ITEM    *
  * WHEN INVOICE MODULE IS NOT USED                              *
  ****************************************************************
  * RECOMMENDATION:                                              *
  ****************************************************************
  

Problem conclusion

• The fix for this APAR is contained in the following maintenance
  package:
  		 | Release 7.6.1.1 of Base Services
  

Temporary fix

Comments

APAR Information

• APAR is sysrouted FROM one or more of the following:

• APAR is sysrouted TO one or more of the following:

Fix information

• Fixed component name

  INVENTORY

• Fixed component ID

  5724R46IN

Applicable component levels

• R760 PSY

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