Example of How Transactions are Costed in the Legal Entity Time Zone
Let's consider that these time zones are configured:
-
Server time zone: UTC
-
Legal entity time zone: PDT (UTC -7:00)
-
User preferred time zone: IST ( UTC +5:30)
Scenario
These transactions are entered in the application. The user entered date in this table is in the user preferred time zone, which is IST (UTC +5:30). However, the dates are stored in the application in the server time zone, which is UTC.
|
Transaction |
Type |
User Entered Date |
Stored Date |
Quantity |
|---|---|---|---|---|
|
Tx #1 |
Misc Receipt |
8/1/16 10:30:00 AM |
8/1/16 5:00:00 AM |
100 EA |
|
Tx #2 |
Misc Issue |
8/15/16 11:00:00 AM |
8/15/16 5:30:00 AM |
- 20 EA |
|
Tx #3 |
Shipment |
8/30/16 05:00:00 PM |
8/30/16 11:30:00 AM |
- 30 EA |
|
Tx #4 |
PO Receipt |
9/1/16 08:00:00 AM |
9/1/16 2:30 AM |
70 EA |
|
Tx #5 |
Misc Issue |
9/3/16 11:00:00 AM |
9/3/16 5:30:00 AM |
- 10 EA |
Also, consider the standard costs as listed here.
|
Start Date |
End Date |
Unit Cost |
|---|---|---|
|
7/1/16 |
7/31/16 |
$1.00 |
|
8/1/16 |
8/31/16 |
$3.00 |
|
9/1/16 |
9/30/16 |
$2.00 |
Analysis
If we consider the cost cutoff as 8/31/2016 11:59:59 PM (PDT), the transactions are costed as listed here. Here, the transaction date is stored in the application in the server time zone, which is UTC, as also shown in the earlier table. The cost date or general ledger date is in the legal entity time zone, which is PDT (UTC -7:00).
|
Transaction |
Stored Date |
Cost Date/GL Date |
Quantity |
Cost |
Inventory Value |
GL Period |
|---|---|---|---|---|---|---|
|
Tx #1 |
8/1/16 5:00:00 AM |
7/31/16 9:00:00 PM |
100 EA |
$1.00 |
$100.00 |
July-16 |
|
Cost Revalue |
8/1/16 00:00:00 AM |
8/1/16 00:00:00 AM |
100 EA |
$(3.00 - 1.00) |
$200.00 |
August-16 |
|
Tx #2 |
8/15/16 5:30:00 AM |
8/14/16 9:30:00 PM |
- 20 EA |
$3.00 |
- $60.00 |
August-16 |
|
Tx #3 |
8/30/16 11:30:00 AM |
8/30/16 3:30:00 AM |
- 30 EA |
$3.00 |
- $90.00 |
August-16 |
|
Tx #4 |
9/1/16 2:30 AM |
8/31/16 6:30 PM |
70 EA |
$3.00 |
$210.00 |
August-16 |
|
Tx #5 |
9/3/16 5:30:00 AM |
9/2/16 9:30:00 PM |
- 10 EA |
- |
- |
- |
As you can see, the last transaction isn't accounted for because the cost date is beyond the cost cutoff date in the legal entity time zone.
The inventory value is as listed here.
|
Period |
Date |
Quantity |
Value |
|---|---|---|---|
|
July-16 |
7/31/16 |
100 |
$100.00 |
|
August-16 |
8/31/16 |
120 |
$360.00 |
|
September-16 |
9/30/16 |