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 Oracle Advisor Webcast Program

 Current schedule
 Archived recordings
 Doc ID 740966.1

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 Future Advisor Webcasts
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Cost Management Webcast

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 Safe Harbor Statement

The following is intended to outline our general product

direction. It is intended for information purposes only, and
may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality,
and should not be relied upon in making purchasing decision.
The development, release, and timing of any features or
functionality described for Oracle’s products remains at the
sole discretion of Oracle.

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Oracle Advisor Webcast
Overview of Inventory Transactions
Accounting

Suhas Basidoni Marius Garip

Suraj Patil
Sathish Kumar P V
 Objectives

 Basic Inventory Accounting setup

 Overview of accounting in Inventory
Purchase and Sales Order transactions
 Form Navigation and table-level flow
 Cost calculation logic

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 Agenda

 Accounting set up
 Brief introduction on accounting aspect of selective Manufacturing
transactions
 Cost calculation
 Table level information on accounting distributions

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 Transactions Covered
Under Standard and Average Costing environments

 Miscellaneous Receipt
 Miscellaneous Issue
 Direct Org Transfer
 PO Receipt
 Return to Vendor
 Sales Order Issue
 Return Material Authorization (RMA)
 COGS Recognition

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 Accounting Setup

 When a new inventory organization is created, system will assign the

organization level valuation accounts to a cost group. This Cost group
will get defaulted into the organization parameters provided it is not
enabled for PJM or WMS.

 Note: Under standard costing, subinventories can have different

valuation accounts (and hence different cost groups), but in average
costing this is only possible if using WMS or PJM. (Refer to Doc Id
565995.1)

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 Accounting Setup
Navigation: Inventory (Resp) – Setup – Costs – Cost Groups

Inventory Valuation Accounts

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 Accounting Setup

Navigation: Inventory (Resp) – Setup – Organizations – Parameters – Costing Information

tab

Cost Group

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 Accounting Setup

Navigation: Inventory (Resp) – Setup – Organizations – Parameters – Inter-org

Defaulted from Shipping

Networks set up

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 Accounting Setup
Navigation: Inventory (Resp) – Setup – Organizations – Parameters – Other

To be entered
by the user

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 Transactions – Miscellaneous Receipt in Standard Costing Org.
Navigation: Inventory (Resp) – Transactions – Misc. Transaction
Misc Receipt of 100 Qty at material cost of 15 p.u & overhead at 2 p.u.

Account entered by the

user

Debit : Inventory
Credit : Account

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 Transactions – Miscellaneous Receipt in Standard Costing Org.

Costing and Table info

Select * from mtl_transaction_accounts where transaction_id = 25822377
Select code_combination_id, concatenated_segments from gl_code_combinations_kfv where code_combination_id in
(13401, 13513, 17347);

Debit : Accounting Line Type 1

(Inventory)
Credit : Accounting Line Type 2
(Account)

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 Transaction – Miscellaneous Receipt (Average Cost)
Navigation: Inventory (Resp) – Transactions – Misc. Transaction
Misc Receipt of 300 Qty at 100 per unit

Account entered by the

user

Debit : Inventory
Credit : Account

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 Transaction – Miscellaneous Receipt (Average Cost)

Costing and Table info

Select * from mtl_material_transactions where transaction_id = 25905909

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 Transaction – Miscellaneous Receipt (Average Cost)

Costing and Table info

Debit : Accounting Line Type 1
Select * from mtl_transaction_accounts where transaction_id = 25905909 (Inventory)
select * from gl_code_combinations_kfv Credit : Accounting Line Type 2
(Account)

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 Transactions – Miscellaneous Issue in Standard Costing Org.
Navigation: Inventory (Resp) – Transactions – Misc. Transaction
Miscellaneous issue of 10 units @ Material cost of 20 p.u. and Overhead cost of 4 p.u.

Account entered by the user

Debit : Account
Credit :Inventory

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 Transactions – Miscellaneous Issue in Standard Costing Org.

Costing and Table Info

Select * from mtl_transaction_accounts where transaction_id = 25908844 Debit : Accounting Line Type 2
(Account)
Select * from gl_code_combinations_kfv Credit : Accounting Line Type1
(Inventory)

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 Transactions – Miscellaneous Issue (Average Costing)
Navigation: Inventory (Resp) – Transactions – Misc. Transaction
Miscellaneous Issue 5 units @ 6 per unit

Account entered by the

user

Debit : Account
Credit :Inventory

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 Transactions – Miscellaneous Issue (Average Costing)

Costing and Table Info

Select * from mtl_material_transactions where transaction_id = 25908825

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 Transactions – Miscellaneous Issue (Average Costing)

Costing and Table Info

Debit : Accounting Line Type 2
Select * from mtl_material_transactions where transaction_id = 25908825 (Account)
Credit : Accounting Line Type1
Select * from gl_code_combinations_kfv (Inventory)

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 Transaction Direct Org Transfer from Standard org to Standard Org
Navigation: Inventory (resp) – Transactions – Inter – Organization transfer

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 Transaction Direct Org Transfer
Inter-org accounts are retrieved from Inter-org
Distribution information table of organization parameters

Debit : Inter Org Receivable

Credit :Inventory

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 Transaction Direct Org Transfer

Costing and Table Info

Select * from mtl_material_trasactions where transaction_id = 25910208
Select * from gl_code_combinations_kfv

Debit : Accounting line type 10

(Int. org. receivable)
Credit : Accounting Line Type 1
(Inventory)

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 Transaction Direct Org Transfer (Average Costing)
Navigation: Inventory (resp) – Transactions – Inter – Organization transfer

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 Transaction Direct Org Transfer (Average Costing)

Distribution Inter-org accounts are retrieved from Inter-org

information table of organization parameters

Debit : Inter Org Receivable

Credit :Inventory

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 Transaction Direct Org Transfer (Average Costing)

Costing and Table Info

Select * from mtl_material_trasactions where transaction_id = 25910220
Select * from gl_code_combinations_kfv

Debit : Accounting line type 10

(Int. org. receivable)
Credit : Accounting Line Type 1
(Inventory)

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 Transaction Direct Org Transfer (Average Costing)

Costing and Table Info

Select * from mtl_material_transactions where transaction_id = 25910220

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 Transaction – Purchase Order and Receipt
Navigation: Purchasing (Resp) – Purchase Orders – Purchase Orders

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 Transaction – Purchase Order and Receipt
Navigation: Purchasing (Resp) – Receiving – Receipts

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 Transaction – Purchase Order and Receipt
Distributions Created
Receiving Inspection is retrieved from Receiving Information of Organization
Setup
Overhead Absorption account is retrieved from overhead set up (Inv – Setup –
Costs - Sub-elements – Overheads)

Material Overhead Account

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 Transaction – Purchase Order and Receipt
Debit : Accounting line type 1
Table Info (Inventory)
Accounting line type 6 (PPV)
Credit : Accounting Line Type 5
select * from mtl_transaction_accounts where transaction_id = 25822463 (Receiving Inspection)
Accounting line type 3
select * from gl_code_combinations_kfv (OH Absorption)

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 Transaction – Purchase Order and Receipt (Average Costing)
Navigation: Purchase (Resp) – Purchase Orders – Purchase Orders

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 Transaction – Purchase Order and Receipt (Average Costing)
Navigation: Purchase (Resp) – Receiving – Receipts

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 Transaction – Purchase Order and Receipt (Average Costing)

Distributions Created

Receiving Inspection is retrieved from Receiving Information of Organization Setup

Debit Inventory
Credit : Receiving Inspection

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 Transaction – Purchase Order and Receipt (Average Costing)

Costing and Table Info

select * from mtl_material_transactions where transaction_id = 25907420

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 Transaction – Purchase Order and Receipt (Average Costing)

Costing and Table Info Debit : Accounting line type 1

(Inventory)
Credit : Accounting Line Type 5
(Receiving Inspection)
select * from mtl_transaction_accounts where transaction_id = 25907420
select * from gl_code_combinations_kfv

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 Transaction – Return to Vendor
Navigation: Purch (Resp) – Receiving – Return

20 units of PO
No.6138 returned

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 Transaction – Return to Vendor

Distributions

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 Transaction – Return to Vendor
Debit : Accounting line type 5
(Receiving Inspection)
Table Info Credit : Accounting Line Type 1
(Inventory)
select * from mtl_transaction_accounts where transaction_id = 25822490 Accounting Line Type 6
select * from gl_code_combinations_kfv (OH Absorption)

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 Transaction – Return to Vendor (Average Costing)
Navigation: Purch (Resp) – Receiving - Return

50 units of PO
No.6144 returned

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 Transaction – Return to Vendor (Average Costing)

Distributions

50 units of PO
No.6144 returned

Debit Receiving Inspection

Credit : Inventory

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 Transaction – Return to Vendor (Average Costing)

Costing and Table Info

select * from mtl_material_transactions where transaction_id = 25908319

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 Transaction – Return to Vendor (Average Costing)

Debit : Accounting line type 5

(Receiving Inspection)
Costing and Table Info Credit : Accounting Line Type 1
select * from mtl_transaction_accounts where transaction_id = 25908319 (Inventory)

select * from gl_code_combinations_kfv

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 Transaction – Sales Order Issue
Navigation: OM (resp) – Orders, Returns – Sales Orders

Specify the appropriate Shipping Method in Others

tab and enter the line items for booking the Order

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 Transaction – Sales Order Issue

Navigation: OM (resp) – Shipping – Release Sales Orders – Release Sales Orders

Enter the Shipping method and the

warehouse details in Shipping and Inventory
tabs to execute and ship confirm

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 Transaction – Sales Order Issue

Distribution

Debit : Deferred COGS

Credit :Inventory

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 Transaction – Sales Order Issue
Debit : Accounting line type 36
(Deferred COGS)
Table Info Credit : Accounting Line Type 1
(Inventory)

Select * from mtl_transaction_accounts where transaction_id in (25869523, 25869515);

Select * from gl_code_combinations_kfv;

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 Transaction – Sales Order Issue (Average Costing)
Navigation: OM (resp) – Orders, Returns – Sales Orders
Specify the appropriate Shipping Method in Others
tab and enter the line items for booking the Order

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 Transaction – Sales Order Issue (Average Costing)

Navigation: OM (resp) – Shipping – Release Sales Orders – Release Sales Orders

Enter the Shipping method and the

warehouse details in Shipping and Inventory
tabs to execute and ship confirm

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 Transaction – Sales Order Issue (Average Costing)

Distribution

Debit : Deferred COGS

Credit :Inventory

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 Transaction – Sales Order Issue (Average Costing)

Costing and Table Info

Select * from mtl_material_transactions where transaction_id = 25908373;

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 Transaction – Sales Order Issue (Average Costing)
Debit : Accounting line type 36
Costing and Table Info (Deferred COGS)
Credit : Accounting Line Type 1
(Inventory)

Select * from mtl_transaction_accounts where transaction_id = 25908373;

Select * from gl_code_combinations_kfv;

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 Transaction – COGS Generation
Steps Involved
 Revenue Accounting
(Navigation: Receivables – Control – Accounting – Revenue Accounting)
Concurrent Processes to be run
 Workflow Background process (concurrent request in Receivables resp.)
 Collect Revenue recognition Information
(Navigation: Cost (Resp.) – COGS Recognition – Collect Revenue)
 Generate COGS recognition Events
(Navigation: Cost (Resp.) – COGS Recognition – Generate COGS)

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 Transaction – COGS Generation Debit : COGS
Credit : Deferred COGS

Distributions

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 Transaction – COGS Generation

Table Info
select * from mtl_transaction_accounts where transaction_id = 25869549;
select * from gl_code_combinations_kfv

Debit : Accounting line type 35 (COGS)

Credit : Accounting Line Type 36
(Deferred COGS)

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 Transaction – COGS Generation (Average Costing)
Steps Involved
 Revenue Accounting
(Navigation: Receivables – Control – Accounting – Revenue Accounting)
Concurrent Processes to be run
 Workflow Background process (concurrent request in Receivables resp.)
 Collect Revenue recognition Information
(Navigation: Cost (Resp.) – COGS Recognition – Collect Revenue)
 Generate COGS recognition Events
(Navigation: Cost (Resp.) – COGS Recognition – Generate COGS)

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 Transaction – COGS Generation (Average Costing) Debit : COGS
Credit : Deferred COGS

Distributions

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 Transaction – COGS Generation (Average Costing)

Table Info

select * from mtl_transaction_accounts where transaction_id = 25908862;

select * from gl_code_combinations_kfv

Debit : Accounting line type 35 (COGS)

Credit : Accounting Line Type 36
(Deferred COGS)

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 Transaction – Return Material Authorization (RMA)
Navigation: OM (Resp.) – Orders, Returns - Sales Orders – Query Order - Line Items tab

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 Transaction – Return Material Authorization (RMA)

Navigation: Purchase (Resp.) – Receiving - Receipts – Customer

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 Transaction – Return Material Authorization (RMA) Debit : Inventory
Credit : COGS

Distribution

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 Transaction – Return Material Authorization (RMA)
Debit : Accounting line type 1 (Inventory)
Credit : Accounting Line Type 35
(COGS)
Table Info
Select * from mtl_transaction_accounts where transaction_id = 25882963;
Select * from gl_code_combinations_kfv;

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 Transaction – Return Material Authorization (RMA) (Average Costing)
Navigation: OM (Resp.) – Orders, Returns - Sales Orders – Query Order - Line Items tab

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 Transaction – Return Material Authorization (RMA) (Average Costing)

Navigation: Purchase (Resp.) – Receiving - Receipts – Customer

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 Transaction – Return Material Authorization (RMA) (Average Costing)

Distribution

Debit : Inventory
Credit : COGS

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 Transaction – Return Material Authorization (RMA) (Average Costing)

Costing and Table Info

Select * from mtl_transaction_accounts where transaction_id = 25908865;
Select * from gl_code_combinations_kfv;

Debit : Accounting line type 1 (Inventory)

Credit : Accounting Line Type 35
(COGS)

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 Live Demo

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 Summary
What we covered today

 Overview of accounting in Inventory

Purchase and S/O transactions
 Table Level Data flow
 Cost Calculation before and after
transactions in standard and
perpetual costing enviornment

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 Top Articles and Community Links
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 THANK YOU

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