IV86494: THE AVERAGE COST CALCULATION HAS ERROR IN INVENTORY

APAR status

• Closed as Permanent restriction.

Error description

• Title:
  The Average Cost Calculation Has Error In Inventory
  
  
  Problem Description:
  After performing the following actions with one item:
  purchase -> consumption -> new purchase at a higher amount ->
  new consumption - > Back last purchase.  A calculation of
  average price occurs negative cost which alters the valuation of
  inventory and costs of later consumption.
  
  Maximo should perform the calculation correctly or at least
  inform the user when the average cost of an item is left
  negative.
  
  Steps to Replicate:
  
  ** Ensure to disable Admin Mode ** Before testing **
  
  1. Go to Inventory  > Item Mater > create an ITEM "test29400
  
  Click Select Action Add it to a storeroom "Central"
  
  Issue Cost Type: Average
  Unit Cost: 0.00
  Issue Unit: Each
  Order Unit: Each
  
  Change of status to Active
  
  
  2. Go Inventory to  change status to Active  if not already set
  
  3. Go to Item Master > "test29400 "  Select Action ->
  Item/Organisation details Make sure is active status
  
  4.GO to Purchasing > Purchase Orders > Create a new "PO1147" Add
  vendor "ATI-R"
  
  Click POLine Tab > New Row Item "test29400"
  Quantity 3.00
  Order Unit: Each
  Issue Unit: Each
  Unit cost: 10.00
  Approve the purchase order
  
  5. Go to Purchasing-> Receiving > P0"1147" Select Order Items
  
  6. Go to Inventory -> Inventory "test29400" Current balance is
  set to 3.00
  
  7.Go to Work order Tracking > Work Orders >  create a "W01251"
  Approve the WO"1251" Click Actuals Tab -> material subtab and
  add item "test29400 "
  
  OUTPUT
  Quantity: 1.00
  Unit Cost: 10.50
  Line Cost: 10.50
  
  Click Select Action Change Status to Complete.
  
  
  8. Go to Inventory > Inventory item "test29400"  - The balace
  shown is 2 in Inventory
  
  9. Go to Purchasing > Purchasing Order create New PO"1148" with
  1 unit and price higher as the first purchase.  In this case 50
  - Apporve the PO"1148"
  
  
  10.Go to Purchasing-> Receiving "PO1148" Select Ordered Items
  
  
  11. Go to Inventory -> Inventory item "test29400"  Balance 3.00
  
  12. Go to Work Order Tracking  > Work order create a new
  WO"1252" Approve it "WO1252" - Click Actuals Tab -> material
  subtab and add item "test29400 "   -- The new unit cost is show
  as  24.50
  
  Select Action Change Status to complete.
  
  13. Go to Inventory > Inventory Item "test29400" we can see 2
  units in the current balance
  
  14. We canceled the last reception
  
  15.Go to Purchasing -> Receiving -> PO "1148" Select Items for
  return
  
  16. Go to Inventory > Inventory Item "test29400"
  The average cost price appears in negative inventory -3.50
  
  
  System Information:
  App Server  IBM WebSphere Application Server 7.0.0.15
  Version  IBM Maximo Asset Management 7.5.0.7 Build 201410271545
  DB Build V7507-00
  Tivoli's process automation engine 7.5.0.7-IFIX20150305-1634
  Build 20141017-1600 DB Build V7507-40 HFDB Build HF7507-11
  IBM Maximo Asset Management Scheduler 7.5.2.0 Build
  20141017-1600 DB Build V7520-174 HFDB Build HF7520-2
  IBM TPAE Integration Framework
  7.5.1.2-MIF_7512_IFIX.20141001-1136 Build
  20140730-1950 DB Build V7512-08 HFDB Build HF7512-02
  Server OS  Windows Server 2008 R2 6.1 build 7601 Service Pack 1
  Server DB  DB2/NT64 9.7 (SQL09074)
  

Local fix

• N/A
  

Problem summary

• ****************************************************************
  * USERS AFFECTED:                                              *
  * Very rare use cases of receiving at different costs and      *
  * returning at high cost                                       *
  * purchase -> consumption -> new purchase at a higher amount   *
  * ->new consumption - > Back last purchase.  A calculation of  *
  * average price occurs negative cost which alters the          *
  * valuation of                                                 *
  * inventory and costs of later consumption.                    *
  ****************************************************************
  * PROBLEM DESCRIPTION:                                         *
  * Very rare use cases of receiving at different costs and      *
  * returning at high cost                                       *
  * purchase -> consumption -> new purchase at a higher amount   *
  * ->new consumption - > Back last purchase.  A calculation of  *
  * average price occurs negative cost which alters the          *
  * valuation of                                                 *
  * inventory and costs of later consumption.                    *
  ****************************************************************
  * RECOMMENDATION:                                              *
  ****************************************************************
  

Problem conclusion

• This request injects behavior change. The code has been working
  as-is for years with no code change. The client's request will
  introduce dialogs, new behavior, system properties.
  Due to the behavior change, we would need to implement a new
  system property to conceal this behavior.  This problem will not
  be fixed under an APAR.
  

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

Applicable component levels