Costing Methods Used for RTV Depletion

PeopleSoft Cost Management calculates the cost of returned items using the transaction group 012 (Return to Vendor). The RTV accounting entry consists of:

• The item's RTV Price. This is the negotiated amount of credit from the supplier for the return of the goods. The RTV price is entered on the debit memo in PeopleSoft Payables.

• The item's cost relieved from the inventory business unit. PeopleSoft Cost Management calculates the cost of returned items based on the depletion costing method that is assigned to the items in the business unit books:

  • The weighted average costing of items uses the cost in effect at the time of the return (depletion). No unweighting of the cost occurs.

  • The standard costing of items uses the standard cost in effect at the time of the return.

  • The actual costing of items with lot or serial cost profiles uses the specific lot IDs and serial IDs on the transaction. The actual costing of items with FIFO or LIFO, uses the next FIFO or LIFO receipt (as predetermined with the supplier), even if the RTV indicates a specific PO or receiver.

• The RTV variance. If there is a difference between the item's RTV price and the cost used to relieve inventory, then an RTV variance is calculated. These RTV variances use the transaction group 415 (RTV Variances) to account for those differences.