Ignore Invoice Variances for Inventory Destination Purchase Orders

You can exclude payables invoice cost variances from inventory valuation for inventory and work order destination purchase orders. Use this if you don't want to apply invoice cost variances as acquisition cost adjustments to item cost and inventory value.

Enable the exclude invoice cost variances feature by using the costing profile options. The profile option code for this feature is ORA_CMR_IGNORE_AP_INV_VAR_ALL. The corresponding profile name is 'Ignore Invoice Variances for Inventory Destination Purchase Orders'. This profile option must be set at the Site level.

When you set the profile value to Yes, unprocessed invoices in costing for both uninvoiced and partially invoiced PO distributions aren't used for creating additional receipt accounting distributions. The invoice variance amounts, if any, aren't considered for true up of inventory valuation or Purchase price variance. When the profile option is enabled the variances aren't accounted in Receipt Accounting and Cost Accounting.

When you change the profile value to No, unprocessed invoices in costing for both uninvoiced and partially invoiced PO distributions are used for creating additional receipt and cost accounting distributions for acquisition cost adjustment based on existing logic.