R12 COGS (Cost Of Goods Sold)

-

In Oracle Application R12 COGS process has been changed. Reason for that are aggressive revenue recognition practices as well as the guidelines from various governing bodies.

Till R11 Cost of goods sold has been recognized as soon as the Order lines has shipped, as shown in below steps

After ship confirm, user run the interface trip stop (ITS).
ITS in turns run the OM Interface and Inventory Interface.
Inventory Interface calls Inventory transaction manager which in turns call COGS WF.
But as per new practices COGS should be recognized along with the revenue.

In R12 used need to define deferred cogs account. These deferred cogs account can be defined at each inventory org level.

During shipping process Inventory tables will hold the deferred COGS accounts. Only after invoicing has done in AR, AR will notify the Costing, and Costing in turns call the COGS account generator to get the cogs account .In that way COGS and revenue will be recognized in the same period.

There are few exceptions like how to get the COGS for

  1. Ship only line (No Invoice will be created).
To handle above cases Close-line activity of the order line workflow has modified to call the costing API to get the cogs value

Comments

  1. Unknown1 May 2014 at 02:21

    This comment has been removed by the author.

    ReplyDelete
  2. Unknown16 July 2016 at 00:27

    This comment has been removed by the author.

    ReplyDelete
  3. Unknown30 March 2017 at 04:02

    I really appreciate information shared above. It’s of great help. If someone want to learn Online (Virtual) instructor lead live training in Oracle E-Business Functional Workflow for R12
    , kindly contact us http://www.maxmunus.com/contact
    MaxMunus Offer World Class Virtual Instructor led training on Oracle 11g. We have industry expert trainer. We provide Training Material and Software Support. MaxMunus has successfully conducted 100000+ trainings in India, USA, UK, Australlia, Switzerland, Qatar, Saudi Arabia, Bangladesh, Bahrain and UAE etc.
    For Demo Contact us:
    Name : Arunkumar U
    Email : arun@maxmunus.com
    Skype id: training_maxmunus
    Contact No.-+91-9738507310
    Company Website –http://www.maxmunus.com



    ReplyDelete
  4. Anonymous11 November 2019 at 15:47

    Here is the investors contact Email details,lfdsloans@outlook.com.  Or Whatsapp +1 989-394-3740 that helped me with loan of 90,000.00 Euros to startup my business and I'm very grateful,It was really hard on me here trying to make a way as a single mother things hasn't be easy with me but with the help of Le_Meridian put smile on my face as i watch my business growing stronger and expanding as well.I know you may surprise why me putting things like this here but i really have to express my gratitude so anyone seeking for financial help or going through hardship with there business or want to startup business project can see to this and have hope of getting out of the hardship..Thank You.

    ReplyDelete

Post a Comment

Popular posts from this blog

Oracle Purchasing Module Step by Step in R12

-
Image
PURCHASING  All the Purchasing related activity information will be declared in Purchasing              Procure 2 Pay Cycle : Requisition à RFQ à Quotation à Quotation Analysis à Purchasing à Receiving à Invoice  à  Payment à Reconciliation PO-Integration :  PO  is integrated by GL, AP, I Supplier, Procurement, and Project Accounting  PO  Responsibility             Step1: Define  PO  Responsibility                         Nav: System administrator à Security à Responsibility à Define             Step2: Assign  PO  options to the PO Responsibility                         Nav: System administrator à Profile à system             Step3: Assign  PO  Responsibility to User                         Nav: System administrator à security à user à define Note:  PO  is including some of i.e. Options, Supplier, Item, Expenses, and Purchasing . Options : Options nothing but a Controlling future at the operating unit level.                         Th
Read more

Sub Ledger Accounting SLA (Complete Functional Information)

-
Image
SubLegder Accounting in R12 SLA Part -1 In these article, we will explore the very basics of SLA and why it exists. Firstly, what exactly does SLA do? SLA is a module which now sits between the SubLedgers like AP/AR etc and the General Ledger. Have a look at this diagram below.  As you will notice, SLA can act as a mediator between the subledgers and Oracle General Ledger. Before we progress, some terminologies of R12 must be revisited. In 11i we had set of books, and in R12 we call them Ledgers. Likewise in R12 we also have secondary ledgers and reporting ledgers. Hence from 11i perspective think of Ledger as Set of Books. As for Subledger, a Subledger is nothing but a module like AP/AR/PO/Inventory etc. In the diagram below, the second scenario is explained whereby let's say that payables module generates a charge account segment combination for an invoice distribution line as A.B.C.D. In such case, if SLA module is not customized, then the very same A.B.C.D
Read more

Difference between ATO and PTO in oracle apps

-
Difference between ATO and PTO in oracle apps 1) MAKE TO ORDER: This is based on Customer specification, you make the product and supply it to them. This is applicable for Engineering items or any Product which you can make based on Customer order Example: Engineering Items 2) ASSEMBLE TO ORDER: This is you have items in parts and it needs to be assembled according to customer requirements For example you have Laptop coming with standard configuration of 160GB Hard disk and 1 GB RAM. But there are customer orders coming in asking for 200GB Hard Disk and 2 GB RAM and if you can assemble them to suit Customer Requirement 3) CONFIGURE TO ORDER: This is Configuring the Product itself to suit Customer requirements Example. The Thread Manufacturing unit Machineries are configured. I have seen Laxmi Machine Works in INDIA which manufactures textile Machineries configure the machineries based on No.of spindles 4) PICK TO ORDER: This is same as Computer Example in ATO. But the  difference is
Read more