Exclude Nonquantity Tracked Subinventory Locations from Inventory Valuation

Periodic automatic replenishment (PAR) locations are commonly configured as nonasset and nonquantity-tracked because the supplies are consumed as expenses rather than held as inventory. Cost Management distinguishes eligible nonquantity-tracked PAR subinventories from quantity-tracked expense subinventories. It processes their transactions in a separate valuation unit of the expense cost profile, recognizes receipts into these locations as expenses without tracking inventory value, and excludes them from revaluation when costs change.

This applies only for a PAR subinventory where the Quantity tracked and Asset subinventory options aren't selected. Cost Management derives the expense cost profile for transactions in the subinventory and uses the QUANTITY_TRACKED valuation segment to direct eligible transactions to the nonquantity-tracked valuation unit.

For cost methods other than standard cost, receipt transactions created with use item cost in the nonquantity-tracked valuation unit are costed at zero cost. For the standard cost method, receipts use the existing standard cost. If a transaction, such as a purchase order receipt or miscellaneous receipt, carries its own cost, Cost Management books the difference between that cost and the standard cost as a variance.

For upgrades using the standard cost method, Cost Management adjusts the on-hand amount associated with nonquantity-tracked subinventories in the expense valuation unit so that Inventory Valuation reports show the actual expense value for quantity-tracked subinventories. The postupgrade correction is controlled through the CST_UPG_NQTY_ONHAND_CALC profile option.

1. In the Setup and Maintenance work area, search for and select the Manage Costing Key Flexfields task.

2. Select the VALU key flexfield code.

3. Select Manage Structures and search for the valuation structure to update or create a valuation structure that includes the required costing segments and the QUANTITY_TRACKED segment.

   For an existing valuation structure, edit the structure. Always add QUANTITY_TRACKED as the last segment and configure it as follows:

   Field	Value
   Segment Code	QUANTITY_TRACKED
   API Name	quantityTracked
   Name	QUANTITY_TRACKED
   Prompt	QUANTITY_TRACKED
   Short Prompt	QUANTITY_TRACKED
   Enabled	Yes
   Display Width	25
   Column Name	QUANTITY_TRACKED
   Default Value Set Code	ORA_CST_QTY_TRACKED
   Sequence Number	Next available or highest sequence number in the structure

4. Select Save and Close after creating or editing the QUANTITY_TRACKED key flexfield segment.

5. Select Done on the Manage Key Flexfield Structures page.
6. Deploy the flexfield and select Done on the Manage Costing Key Flexfields page.

If you're using the standard cost method, after upgrade:

1. Navigate to Setup and Maintenance work area and select the Manage Profile Options task.

2. Verify that the CST_UPG_NQTY_ONHAND_CALC profile option is available at the site or user level.

3. Select the Manage Administrator Profile Values task.

4. Set the site or user value to Yes for the profile option.

5. Select Save and Close.

The change takes effect the next time that you sign in.