Drop Shipments costing of Inventory using the average method.

How does the system handles the costing of inventory using the average method during dropshipments?
One of my prospects uses average costing method for the accounting of their inventory. The issue now is, how does the system compute s for the cost since the goods/inventory is delivered directly by the supplier to the customer? What is the basis for the amount to be posted in COGS? Thanks!
null

For Drop shipments two inventory movements are still performed. When the goods are initially received (albeit logically), Oracle Inventory immediately issues them out of stock again - just as if you had ship confirmed them. Therefore you inventory accounting is also the same, and will use the purchase price of the goods as the inventory value.

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[This thread was migrated from the On Demand Developer Forum in the old Siebel Community]
Corsa
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I am getting the following error I do not know why or how to work around
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Re: Using the ContactInsertOrUpdate method from the ContactWS but error
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Re: Using the ContactInsertOrUpdate method from the ContactWS but error
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Click on the board or message subject at the top to return.

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Drop Shipments costing of Inventory using the average method.

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