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Validating Profit In Inventory (PII) Cost Model

Avatar photoCustomer Questions & Answers 5 replies

We need to verify that our Profit in Inventory (PII) cost model is calculating correctly, specifically comparing intercompany Sales Order (SO) price lists against the item costs in the source and destination organizations. Which report is best for this analysis?

5 replies

  • Support Enginatics

    The CAC Intercompany SO Price List vs. Item Cost Comparison report is designed exactly for this purpose. It shows internal SO price lists, source organization item costs, and compares them against the ‘To Org’ item costs and PII amounts.

  • Avatar photoCustomer

    Which input parameters are mandatory to ensure accurate comparison, especially regarding sourcing rules?

  • Support Enginatics

    You must supply ‘Price Effective Date’, ‘Currency Conversion Date’, ‘Currency Conversion Type’, ‘PII Cost Type’, ‘PII Sub-Element’, and crucially, the ‘Assignment Set’. The Assignment Set is required because it defines the sourcing rules used when calculating PII item costs.

  • Avatar photoCustomer

    We’ve also had issues where the shipping transaction cost doesn’t match the invoice price charged by the selling internal organization. Is there a related report?

  • Support Enginatics

    Yes. The CAC Intercompany SO Shipping Transaction vs. Invoice Price report compares the transaction item cost from the selling internal organization to the invoice sales price charged to the internal receiving organization.

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