Item Cost Service

The item cost SOAP service retrieves the calculated item costs based on the cost methods. Other applications can use this service to retrieve the cost of items from Oracle Cost Management by passing specific input parameters. For example, an application might pass the item and inventory organization ID parameters to get the item costs for making transfer requisitions, cycle count adjustments, or transfer price computation.

The valuation structure for costing an item can be at different levels. For example, it can be at the cost organization, inventory organization, or subinventory level. Based on the input parameters and the valuation structure, the service retrieves the item cost. If the valuation structure matches the input parameters, the item cost service returns the exact item cost. If the valuation structure is at a higher or lower level than the input parameters, the item cost can vary.

For the standard and periodic average cost methods, an item can have only one cost. So, irrespective of the input parameters passed, the item cost service always returns the latest standard cost or periodic average cost.

For the actual and average cost methods, an item can have multiple costs. Let’s look at a few examples of how the item cost service retrieves the item cost based on the valuation structure and input parameters, for the average cost and actual cost methods. Other than the valuation structure if more granular information is provided, the item cost service retrieves an exact match for all of these scenarios by returning the cost for the valuation unit.

Example 1: Item's valuation structure is at the cost organization level

This table lists how the item cost service retrieves the cost for the given input parameters based on the cost method, when the valuation structure is at the cost organization level.

Input Parameters	Average Cost Method	Actual Cost Method
Cost Organization Cost Organization + Inventory Organization Cost Organization + Inventory Organization + Subinventory Cost Organization + Inventory Organization + Subinventory + Lot	Returns the cost for the valuation unit	Returns the cost of the latest receipt

Example 2: Item's valuation structure is at the cost organization and inventory organization level

This table lists how the item cost service retrieves the cost for the given input parameters based on the cost method, when the valuation structure is at the cost organization and inventory organization level.

Input Parameters	Average Cost Method	Actual Cost Method
Cost Organization	Calculates the average for the cost organization	Returns the cost of the latest receipt
Cost Organization + Inventory Organization Cost Organization + Inventory Organization + Subinventory Cost Organization + Inventory Organization + Subinventory + Lot	Returns the cost for the valuation unit	Returns the cost of the latest receipt

Example 3: Item's valuation structure is at the cost organization, inventory organization, and subinventory level

This table lists how the item cost service retrieves the cost for the given input parameters based on the cost method, when the valuation structure is at the cost organization, inventory organization, and subinventory level.

Input Parameters	Average Cost Method	Actual Cost Method
Cost Organization Cost Organization + Inventory Organization	Calculates the average for the cost organization	Returns the cost of the latest receipt
Cost Organization + Inventory Organization + Subinventory Cost Organization + Inventory Organization + Subinventory + Lot Cost Organization + Inventory Organization + Subinventory + Lot + Serial	Returns the cost for the valuation unit	Returns the cost of the latest receipt

For information about the input parameters accepted by the item cost service, see the Enhanced Item Cost Input SDO topic in the SOAP Web Services for SCM guide.