SLA Costing Events - Accounting Distributions

Oracle Corporation
Fusion Cost
Management
SLA Costing Events – Accounting Distributions
Amit Kumar
06th July’2015
Fusion Costing: Accounting Distributions Release 1.0.11

Table of Contents
Introduction........................................................................................................................................................ 3
Inventory Transactions........................................................................................................................................ 4
Miscellaneous Transactions.......................................................................................................................................4
Intra Organization Transfers.......................................................................................................................................6
Direct Organization Transfer......................................................................................................................................7
Inter- Organization Transfer.......................................................................................................................................9
Transfer Orders: Sub-Inventory Transfer.................................................................................................................11
Transfer Orders: Direct Organization Transfer.........................................................................................................13
Transfer Order: Inter Organization Transfer............................................................................................................15

Internal Drop Ship....................................................................................................................................................17
Purchasing........................................................................................................................................................ 19
Receipts, Returns and Adjustments.........................................................................................................................19
Global Procurement.................................................................................................................................................22
Sales................................................................................................................................................................. 26
Work in Process................................................................................................................................................ 27
Cost Adjustment............................................................................................................................................... 29
Consigned Material........................................................................................................................................... 31
Purchasing................................................................................................................................................................31
Cycle Counts.............................................................................................................................................................31
Direct Organization Transfer....................................................................................................................................32
Inter Organization Transfer......................................................................................................................................33
Transfer Order: Direct Organization Transfer..........................................................................................................34
Transfer Order: Inter Organization Transfer............................................................................................................34
Global Procurement.................................................................................................................................................35
Introduction
This document lists the accounting distributions created by the Fusion Cost Accounting solution for
inventory and manufacturing transactions.
Notes:
 Inventory can be tracked in an asset sub-inventory location or in an expense sub-inventory

location. An asterisk (*) in the table below indicates when the accounting line type differs
depending on whether the inventory is tracked as an asset or expense.
When the inventory is tracked as an asset, the account you should define in your accounting
rules is an Inventory Valuation account. When the inventory is tracked as an expense the
account you should define in your accounting rules is an Expense account."
 Two asterisks (**) indicate accounting distributions that are applicable only to standard cost.
 Overhead Costs Expensed or Capitalized
On inbound transactions and inventory transfer transactions, overhead expenses can be absorbed and
capitalized into inventory value, or the absorption can be redirected to an expense account: a credit to an
absorption account and a debit to either an inventory or expense account. On outbound transactions,
overhead absorption is redirected to an expense account, and will be included in the gross margin
calculation.
For example, consider a receipt of inventory items that cost $10 each to purchase, and you would like to
absorb overhead cost of $2 each on the inbound transaction. When the item is sold, you would like to
absorb additional overhead of $3 each on the outbound transaction. The total cost of goods sold is $15
each.
 Valuation Unit Transfer Gain Loss acts as a clearing account... the transfer out debits the
account and the transfer in at destination credits that account.
 Miscellaneous Issues: Includes quantities issued with user-defined transaction sources, account
numbers and account aliases.
User may define one or more account aliases to use when user perform miscellaneous issue or receipt
transactions. An account alias is a logical reference to a frequently used account number combination. It is
also a transaction source type of its own, thereby allow us to query and report transactions using user-
friendly references to particular account numbers.
 Move Oder Issue is basically Movement request transaction executed under the task Manage
Movement Request in Inventory UI.
Move orders are requests for the movement of material within a single organization. They allow planners
and facility managers to request the movement of material within a warehouse or facility for purposes
like replenishment, material storage relocations and quality handling.
Headers just above the Event Types denote Event Class.

Inventory Transactions
Miscellaneous Transactions
"The following transaction event types all follow the pattern shown in the table below."
 Account Alias Issue

 Account Issue
 Miscellaneous Issue
 Move Order Issue
 Cycle Count Adjustment – Negative Users don't enter accounts on cycle or phys adj
 Physical Inventory Adjustment – Negative transactions
Accounting Line Type Debit Credit Remarks

Material Cost based on the Cost
method we follow:
Standard Cost: @ Standard Cost
Offset X
Actual Cost: @ Given cost in
transaction / layer cost
Perp. Average: @ Given cost in
Inventory Valuation / Expense * X transaction / Current Average
On outbound transaction -
Overhead is expensed @
Expense X Standard Cost if we follow Std
Cost method or from OH Rules if
we follow Actual/ Perp. Average
Material Overhead Absorption X Cost method
Occur for the difference between
Offset X Actual Issue cost vs. Standard
Cost of Material when we follow
Miscellaneous Issue Variance ** X Std Cost method
Actual Issue cost vs. Receipt cost
Offset X
in FIFO(Layer cost) or Current
Average when we follow Actual/
Cost Variance X Perp. Average Cost method
Example:
Let’s say the existing average cost /actual cost of inventory is $20. Standard cost is $22 and there is a
Misc. Issue transaction for $15. What will be the accounting impact:
Misc Issue: (Under Actual/Perp. Average Cost method) Misc Issue: (Standard Cost method)
Debit: Offset A/c $20.00 Debit: Offset A/c $22.00
Credit: Inventory A/c $20.00 (Inventory cost) Credit: Inventory A/c $22.00 (Inventory cost)
Debit: Cost Variance A/c $5.00 ($20 - $15) Debit: Miscellaneous Issue variance A/c $7.00 ($22 - $15)
Credit: Offset A/c $5.00 Credit: Offset A/c $7.00
Inventory worth actual cost/per avg. or std cost of $20/$22 is moving out against receivable/realization
of $15 (Misc Issue transaction cost $15) and we incur a loss of $5/$7.
‘Occurrence of certain accounting line types is scenario specific’ i.e. in the given example above if the
case was just reverse wherein Misc. Issue transaction was for $25 (higher than) Actual/Per Avg.
Inventory cost of $20 or Std Cost of $22, then Accounting entries also would have been vise-versa, i.e.:
Misc Issue: (Under Actual/Perp. Average Cost method) Misc Issue: (Standard Cost method)
Debit: Offset A/c $20.00 Debit: Offset A/c $22.00
Credit: Inventory A/c $20.00 (Inventory cost) Credit: Inventory A/c $22.00 (Inventory cost)
Debit: Offset A/c $5.00 ($20 - $15) Debit: Offset A/c $3.00 ($25 - $22)
Credit: Cost Variance A/c $5.00 Credit: Miscellaneous Issue variance A/c $3.00
 Account Alias Receipt

 Account Receipt
 Miscellaneous Receipt
 Cycle Count Adjustment - Positive Users don't enter accounts on cycle or phys adj
 Physical Inventory Adjustment – Positive transactions

method we follow:
Inventory Valuation / Expense * X Actual Cost: @ Given cost in
transaction / layer cost
Perp. Average: @ Given cost in
Offset X transaction / Current Average
On Inbound transaction -
Overhead either capitalized or
Inventory Valuation / Expense * X expensed @ Standard Cost if we
follow Std Cost method or from
OH Rules if we follow Actual/
Material Overhead Absorption X Perp. Average Cost method
Actual Receipt cost vs. Standard
Cost of Material when we follow
Miscellaneous Receipt Variance ** X
Std Cost method.
‘No cost variance under
Actual/Perp. Average Cost
Offset X method’
Intra Organization Transfers
 Cycle Count Transfer - Issue

 Lot Grade Change - Issue
 Movement Request Transfer - Issue
 Physical Inventory Transfer - Issue
 Planning Transfer - Issue
 Sales Order Pick - Issue
 Sub-Inventory Transfer - Issue
method we follow:
Valuation Unit Transfer Gain Loss X Standard Cost: @ Standard Cost
Actual Cost: @ Source VU cost
Perp. Average: @ Source VU
Inventory Valuation / Expense * X cost
Note: Valuation Unit Transfer Gain Loss acts as a clearing account... the transfer out debits the
 Cycle Count Transfer - Receipt

 Lot Grade Change - Receipt
 Movement Request Transfer - Receipt
 Physical Inventory Transfer - Receipt
 Planning Transfer - Receipt
 Sales Order Pick - Receipt
 Sub-Inventory Transfer - Receipt
method we follow:
Inventory Valuation / Expense * X Standard Cost: @ Standard Cost
Actual Cost: @ Source VU cost
Perp. Average: @ Source VU
Valuation Unit Transfer Gain Loss X cost
On Inbound transaction -
Inventory Valuation / Expense * X expensed @ Standard Cost if we
follow Std Cost method or from
Material Overhead Absorption X Perp. Average Cost method
Source VU cost vs. Standard Cost
Valuation Unit Transfer Variance ** X of Material when we follow Std
Cost method.
Valuation Unit Transfer Gain Loss X method’
Direct Organization Transfer

Event Type Name Accounting Line Type Debit Credit Remarks
method we follow:
Shipment Trade In-Transit Valuation X Standard Cost: @ Standard Cost
Actual Cost: @ Layer cost
Inventory Valuation / Expense * X Perp. Average: @ Current Average
Overhead is expensed @ Standard
Expense X
Cost if we follow Std Cost method
or from OH Rules if we follow
Material Overhead Absorption X Actual/ Perp. Average Cost method
Happens when physical shipment
runs into negative inventory and
Offset X cost at the time of resolving
negative inventory is different.
Perpetual/FIFO with Propagation
Cost Variance X disabled.

Inter Company Cost of Goods
Trade In Transit Issue Sold X Inter-Co. COGS Recognition
(Intercompany Invoicing Option = Y) Trade In-Transit Valuation X
Expense X
Transfer Overhead
Overhead Absorption X

Trade In Transit Issue Inter Organization Receivables X
X Inter-Org Receivables
(Intercompany Invoicing Option = N) Trade In-Transit Valuation
Expense X
Transfer Overhead
Inter Organization Receivables X
Transfer Gain/Loss
Inter Organization Gain/Loss X

Trade In Transit Receipt Trade In-Transit Valuation X
(Intercompany Invoicing Option = X Receipt
Y / N) Trade Clearing
Trade In-Transit Valuation / X
Expense * Transfer Overhead
Trade In-Transit Valuation X
Transfer Gain/Loss
Trade Clearing X

method we follow:
Receipt Inventory Valuation / Expense * X
Trade In-Transit Valuation X Perp. Average: @ Current Average
On Inbound transaction -Overhead
either capitalized or expensed @
Inventory Valuation / Expense * X Standard Cost if we follow Std Cost
method or from OH Rules if we
follow Actual/ Perp. Average Cost
Material Overhead Absorption X method
Transfer Price vs. Standard Cost of
Transfer Price Variance ** X Material when we follow Std Cost
method.
Trade In-Transit Valuation X Actual/Perp. Average Cost method’
X
Trade In Transit Return Trade Clearing
(Intercompany Invoicing Option = X Return
Y / N) Trade In-Transit Valuation
Expense X
Transfer Overhead
Trade Clearing X
Transfer Gain/Loss

Trade In Transit Return Receipt Trade In-Transit Valuation X
Inter-Co. COGS Reversal
(Intercompany Invoicing Option = Y) Inter Company COGS X

Inter-Org Receivables Reversal
(Intercompany Invoicing Option = N) Inter Organization Receivables X
Trade In-Transit Valuation / X Transfer Overhead
Expense *
Inter Organization Gain Loss X
Transfer Gain/Loss
Inter- Organization Transfer

method we follow:
Shipment to In-Transit Trade In-Transit Valuation X Standard Cost: @ Standard Cost
Perp. Average: @ Current
Inventory Valuation / Expense * X Average
Happens when physical shipment
Offset X cost at the time of resolving
negative inventory is different.
Cost Variance X disabled.

Trade In Transit Issue Inter Company Cost of Goods Sold X
Inter-Co. COGS Recognition
Expense X
Transfer Overhead

Trade In Transit Issue Inter Organization Receivables X
Inter-Org Receivables
(Intercompany Invoicing Option = N) Trade In-Transit Valuation X
Expense X
Transfer Overhead
Transfer Gain/Loss

(Intercompany Invoicing Option = Y / X Receipt
N) Trade Clearing
Trade In-Transit Valuation X Transfer Gain/Loss
Trade Clearing X

X Material Cost based on the Cost
method we follow:
Receipt from In-Transit Inventory Valuation / Expense *
Perp. Average: @ Current
X
Receiving Inspection Average
X On Inbound transaction -
Inventory Valuation / Expense * expensed @ Standard Cost if we
X follow Std Cost method or from
Material Overhead Absorption Perp. Average Cost method
X Occur for the difference between
Transfer Price vs. Standard Cost of
Transfer Price Variance ** Material when we follow Std Cost
X method.
Receiving Inspection method’
Trade In Transit Return Trade Clearing X

(Intercompany Invoicing Option = Y / X Return
N) Trade In-Transit Valuation
Expense X
Transfer Overhead
Trade Clearing X
Transfer Gain/Loss


Inter-Org Receivables Reversal
Transfer Gain/Loss
Transfer Orders: Sub-Inventory Transfer
Note: Valuation Unit Transfer Gain Loss acts as a clearing account... the transfer out debits the

TO IntraOrg Transfer Shipment Trade In-Transit Valuation X
Material
Inventory Valuation / Expense * X
Expense X
Overhead
Material Overhead Absorption X

TO IntraOrg Transfer Receipt Inventory Valuation / Expense * X
Material
Overhead
Valuation Unit Transfer Variance ** X These are generated for
Trade Intransit Valuation X Standard cost variance

X This is direct subinventory
TO Sub-Inventory Transfer Issue Valuation Unit Transfer Gain Loss transfer (just noting here to
X show that the above one was
Inventory Valuation / Expense * intransit)
Expense X
Overhead

TO Sub-Inventory Transfer X
Receipt Inventory Valuation / Expense * Material
Valuation Unit Transfer Gain/Loss X
Overhead
Valuation Unit Transfer Variance ** X
Standard Cost variance
Trade In Transit Issue X Transfer Gain/Loss
Valuation Unit Transfer Gain/Loss These come into picture only for
X transfer order Intra-Org
Trade In-Transit Valuation intransit transfer
Expense X
Transfer Overhead
Trade In Transit Receipt Trade In-Transit Valuation X Transfer Gain/Loss

X These come into picture only for
transfer order Intra-Org
Valuation Unit Transfer Gain/Loss intransit transfer
TO Pick Issue Valuation Unit Transfer Gain Loss X

Material
Expense X
Overhead

TO Pick Receipt Inventory Valuation / Expense * X
Material
Overhead
X When the VU is different and
Valuation Unit Transfer Variance
there is a difference between
**
the receipt cost and standard
X
cost of item (Standard cost
Valuation Unit Transfer Gain/Loss variance)

TO Return Pick Issue Valuation Unit Transfer Gain Loss X
Material
Expense X
Overhead

TO Return Pick Receipt Inventory Valuation / Expense * X
Material
Overhead
Valuation Unit Transfer Variance X
** Standard Cost variance
Transfer Orders: Direct Organization Transfer
TO Trade In Transit Issue Inter Company Cost of Good Sold X Inter-Co. COGS
(Intercompany Invoicing Option = Y) Trade In-Transit Valuation X Recognition
Expense X
Transfer Overhead

TO Trade In Transit Issue Inter Organization Receivables X
Expense X
Transfer Overhead
Transfer Gain/Loss

TO Trade In Transit Receipt Trade In-Transit Valuation X
(Intercompany Invoicing Option = Y / X Receipt
N) Trade Clearing
Trade In-Transit Valuation / Expense * X
Transfer Overhead
Transfer Gain/Loss
Trade Clearing X
TO Trade In Transit Return Trade Clearing X

(Intercompany Invoicing Option = Y / X Return
Expense X
Transfer Overhead
Trade Clearing X
Transfer Gain/Loss

TO Trade In Transit Return X
Receipt Trade In-Transit Valuation Inter-Co. COGS Reversal
Transfer Overhead

Receipt Trade In-Transit Valuation
Reversal
Transfer Overhead
Transfer Gain/Loss

TO Transfer Shipment Trade In-Transit Valuation X
Material
Expense X
Overhead
Offset X This is from writeoff for
Cost Variance X negative inv booking

TO Transfer Receipt Inventory Valuation / Expense * X
Material
Overhead
Transfer Price Variance ** X

Receipt Expense
TO Return with scrap flow Expense X
These trade events are

X for TO Return with
TO Trade In Transit Return
Receipt Expense scrap without receipt
TO Return with scrap flow Expense X
Expense X
Transfer Order: Inter Organization Transfer
TO Shipment to In-Transit Trade In-Transit Valuation X
Material
Expense X
Overhead

TO Trade In Transit Issue Inter Company Cost of Goods Sold X Inter-Co. COGS
(Intercompany Invoicing Option = Y) Trade In-Transit Valuation X Recognition
Expense X
Transfer Overhead

TO Trade In Transit Issue Inter Organization Receivables X
Expense X
Transfer Overhead
Transfer Gain/Loss

TO Trade In Transit Receipt Trade In-Transit Valuation X
Receipt
(Intercompany Invoicing Option = Y / N) Trade Clearing X
Transfer Overhead
Transfer Gain/Loss
Trade Clearing X

TO Receipt from In-Transit Inventory Valuation / Expense * X
Material
Receiving Inspection X
Overhead
Transfer Price Variance ** X Standard Cost vs.
Receiving Inspection X Transfer price
TO Issue Trade In-Transit Valuation X
Material
Expense X
Overhead

TO Return Shipment Receiving Inspection X Material
X The accounting is same
for TO Return Shipment
Inventory Valuation / Expense * With Scrap flow
Expense X
Overhead
Receiving Inspection X This is from writeoff for

Trade In Transit Return Trade Clearing X
Return
(Intercompany Invoicing Option = Y / N) Trade In-Transit Valuation X
Expense X
Transfer Overhead
Trade Clearing X
Transfer Gain/Loss

Transfer Overhead

Trade In Transit Return Receipt Trade In-Transit Valuation X Inter-Org Receivables
(Intercompany Invoicing Option = N) Inter Organization Receivables X Reversal
Transfer Overhead
Transfer Gain/Loss
Internal Drop Ship

Physical Sales Order Issue Trade In-Transit Valuation X Material
Expense X
Overhead
X Happens when physical shipment
Offset cost at the time of resolving
X negative inventory is different.
Cost Variance disabled

DS Trade In Transit Issue Inter Company COGS X
Inter-Co. COGS Recognition
Expense X
Transfer Overhead

DS Trade In Transit Issue Inter Organization Receivables X
(Intercompany Invoicing Option = X Inter-Org Receivables
Expense X
Transfer Overhead
Transfer Gain/Loss

DS Trade In Transit Receipt Trade In-Transit Valuation X
(Intercompany Invoicing Option = X Receipt
Transfer Gain/Loss
Trade Clearing X

DS Trade Sales Issue Deferred Cost of Goods Sold X
(Intercompany Invoicing Option = X DCOGS/Shipment
Expense X
Transfer Overhead
Deferred Cost of Goods Sold X
Transfer Gain/Loss
Physical RMA Receipt Inventory Valuation / Expense * X

Return Material receipt
Inventory Valuation / Expense * X Overhead

X In-Transit
Trade Sales return Trade In-Transit Valuation When goods are returned in IDS
(Intercompany Invoicing Option = X flow, these entries are created in
Y / N) Deferred RMA Gain / Loss customer facing node.
Trade In-Transit Valuation / X Transfer Overhead
Expense * Same as above, cost source is
Overhead Absorption X overhead rules.

Trade In-Transit Return Trade Clearing X
Expense X
Transfer Overhead
Trade Clearing X
Transfer Gain/Loss


(Intercompany Invoicing Option = X Inter-Org Receivables Reversal
N) Inter Organization Receivables
Transfer Gain/Loss
Purchasing
Receipts, Returns and Adjustments
PO Receipt into Inventory Inventory Valuation / Expense * X Material Cost based on the Cost
X method we follow:
Actual Cost: @ PO price
Receiving Inspection Perp. Average: @ PO price
X On Inbound transaction -Overhead
Inventory Valuation / Expense * either capitalized or expensed @
Standard Cost if we follow Std Cost
X
method or from OH Rules if we follow
Material Overhead Absorption Actual/ Perp. Average Cost method
X Occur for the difference between PO
price vs. Standard Cost of Material
Purchase Price Variance **
when we follow Std Cost method.
X
‘No cost variance under Actual/Perp.
Receiving Inspection Average Cost method’

Return to Supplier: Return to X Material- similar logic as mentioned
Receiving Inspection Receiving Inspection above for Event ‘PO Receipt into
Inventory Valuation / Expense * X Inventory’
X On outbound transaction -Overhead
is expensed @ Standard Cost if we
Expense
follow Std Cost method or from OH
X
Rules if we follow Actual/ Perp.
Material Overhead Absorption Average Cost method
Reversal (PO Price vs. Standard Cost)
Purchase Price Variance ** X
X Similar to the inventory issue
Receiving Inspection transactions. When the cost of PO is
X different than the perpetual average
Cost Variance or the FIFO receipt.

PO Receipt Adjustment: X Material – similar logic as mentioned
Negative Receiving Inspection above for Event ‘Return to
Inventory Valuation / Expense * X Receiving Inspection’
Expense X Overhead– similar logic as mentioned
above for Event ‘Return to
Material Overhead Absorption X Receiving Inspection’
X Similar to the Return to Receiving
Receiving Inspection Inspection, when the cost of PO is
X different than the perpetual average
Cost Variance or the FIFO receipt.
PO Receipt Adjustment: Positive X Material - similar logic as mentioned

Inventory Valuation / Expense * above for Event ‘PO Receipt into
Receiving Inspection X Inventory’
X On Inbound transaction -Overhead
either capitalized or expensed @
Inventory Valuation / Expense *
Standard Cost if we follow Std Cost
method or from OH Rules if we follow
Actual/ Perp. Average Cost method
X Occur for the difference between PO
Purchase Price Variance ** price vs. Standard Cost of Material
X when we follow Std Cost method.
‘No cost variance under Actual/Perp.
Receiving Inspection Average Cost method’

PO Receipt Adjustment: X
Acquisition Cost Adjustment -
Material
Positive Inventory Valuation / Expense *
Overhead
PO Price vs. Standard Cost

Material
Negative Receiving Inspection
Expense X
Overhead

X Material
PO Receipt Adjustment: When Acquisition cost adjustment(via
IPV or Retro Price change or Landed
Acquisition Cost Write Off -
Cost Change) happens for a PO
Positive Inventory Write Off receipt adjustment +ve after this
X receipt has already been
consumed/depleted and cost method
is perpetual or FIFO with propagation
Receiving Inspection disabled
X Overhead
Inventory Write Off / Expense *
Same as above but source of cost is
X
Material Overhead Absorption Overhead rules

PO Receipt Adjustment: X Material
Acquisition Cost Write Off - When acquisition cost adjustment
Negative Receiving Inspection happens for a PO receipt adjustment
Inventory Write Off X -ve (issue/RTV).

PO Receipt: Acquisition Cost X
Adjustment Inventory Valuation / Expense * Material
Overhead
Purchase Price Variance ** X Reversal (PO Price vs. Standard Cost)

X When Acquisition cost adjustment(via
IPV or Retro Price change or Landed
PO Receipt: Acquisition Cost Cost Change) happens for a PO
Adjustment Write-off Inventory Write Off receipt adjustment +ve after this
X receipt has already been
consumed/depleted and cost method
is perpetual or FIFO with propagation
Receiving Inspection disabled.
Inventory Write Off / Expense * X Same as above but source of cost is
Material Overhead Absorption X Overhead rules.

Return to Supplier: Acquisition X
Cost Adjustment Receiving Inspection Material
Expense X
Overhead

Cost Write-off Receiving Inspection Material
Inventory Write-Off X
Expense X
Overhead
Global Procurement
(Intercompany Invoicing Option = X Material
Trade In-Transit Valuation / Expense X
* Overhead
Transfer Gain / Loss
Trade Clearing X

Trade In Transit Issue Inter Company Cost of Good Sold X
(Intercompany Invoicing Option = Inter-Co. COGS Recognition
Y) Trade In-Transit Valuation X
Expense X
Transfer Overhead

Trade In Transit Issue Inter Organization Receivable X
(Intercompany Invoicing Option = X Inter-Org Receivables
Expense X
Transfer Overhead
Transfer Gain/Loss

PO Delivery into Inventory Inventory Valuation / Expense * X
Material
Overhead

Positive Inventory Valuation / Expense * Material
Overhead
PO Receipt Adjustment: Negative Receiving Inspection X
Material
Overhead
Receiving Inspection X Reversal (PO Price vs.
Transfer Price Variance ** X Standard Cost)
X Similar to the inventory
issue transactions.
Receiving Inspection When the cost of PO is
X different than the
perpetual average OR
Cost Variance the FIFO receipt.

PO Receipt Adjustment: Transfer X
(Issue) Receiving Inspection Material
Overhead
issue transactions.
Cost Variance the FIFO receipt

Return to Supplier: Return to X
Inspection - Negative Receiving Inspection Material
Expense X
Overhead
issue transactions.
Cost Variance the FIFO receipt
Return to Supplier (Return to X
Inspection): Transfer Receiving Inspection Material
Inventory Write off/Expense * X
Overhead
Receiving Inspection X Reversal (PO Price vs. Standard
Transfer Price Variance ** X Cost)
X Similar to the inventory issue
Receiving Inspection transactions. When the cost of PO
is different than the perpetual
X
Cost Variance average OR the FIFO receipt

X
Trade In-Transit Return Trade Clearing
Expense X
Transfer Overhead
Trade Clearing X
Transfer Gain/Loss

(Intercompany Invoicing Option = X Inter-Co. COGS Reversal
Y) Inter Company COGS
* Transfer Overhead

(Intercompany Invoicing Option = X Inter-Org Receivables Reversal
N) Inter Organization Receivables
* Transfer Overhead
Transfer Gain/Loss

Trade In-Transit Receipt: X
Material
Acquisition Cost Adjustment Trade In-Transit Valuation
**IPV or Retro price change in
(Intercompany Invoicing Option = X global procurement scenario
Trade In-Transit Valuation / Expense X Overhead
*

PO Receipt: Acquisition Cost X
Adjustment Inventory Valuation / Expense * Material
Overhead
X Material
When Acquisition cost
adjustment(via IPV or Retro Price
PO Receipt: Acquisition Cost change or Landed Cost Change)
Write-off Inventory Write Off happens for a PO receipt
X adjustment +ve after this receipt
has already been
consumed/depleted and cost
method is perpetual or FIFO with
Receiving Inspection propagation disabled.
Inventory Write Off / Expense * X Overhead
X Same as above but source of cost
Material Overhead Absorption is Overhead rules.

Cost Adjustment Receiving Inspection Material
Expense X
Overhead
Purchase Price Variance ** X Cost)

Cost Write-off Receiving Inspection Material
Inventory Write-Off X
Expense X
Overhead
Material
Positive Inventory Valuation / Expense *
Overhead
Purchase Price Variance ** X PO Price vs. Standard Cost
Material
Negative Receiving Inspection
Expense X
Overhead
Purchase Price Variance ** X Cost)
Acquisition Cost Write Off - Material
Positive Inventory Write Off Similar to PO Event
Inventory Write Off X Overhead
Material Overhead Absorption X Similar to PO Event
Acquisition Cost Write Off - Material
Negative Receiving Inspection Similar to PO Event
Inventory Write Off X
Expense X Overhead
Material Overhead Absorption X Similar to PO Event
Sales
Sales Order Issue Deferred Cost of Goods Sold X
DCOGS/Shipment
Expense X
Overhead
Offset X Happens when physical shipment
cost at the time of resolving
Cost Variance X negative inventory is different.
disabled.

RMA Receipt Inventory Valuation / Expense * X
Material
Deferred RMA Gain Loss X
Inventory Valuation X
Overhead
Work in Process
Material Issue WIP Valuation X
Material
Expense X
Overhead
WIP Valuation X Similar to inventory
Cost Variance X issue event.

Resource Charging WIP Valuation X
Resource Cost
Resource Absorption X

Resource Charge Reversal Resource Absorption X
Resource Cost
WIP Valuation X

Inventory Valuation / Expense * X FG Conversion
Product Completion @Standard Cost, @WIP
WIP Valuation X cost under Actual/Perp.
Average method
Expense X Overhead
Material Overhead Absorption X Absorption/Earns
Recovery

Scrap Scrap Expense X
Scrap Cost
WIP Valuation X

Scrap Return WIP Valuation X
Scrap Cost
Scrap Expense X

Material Return Inventory Valuation / Expense * X
WIP Material return
WIP Valuation X
Expense X
Overhead
WIP Return Price Variance ** X
Std Cost vs. WIP Cost
WIP Valuation X

Product Return WIP Valuation X
FG Cancellation
Expense X
Overhead

Job Close Variance - Negative WIP Valuation X
Batch Size Variance X Job Close Variance
Component Sub Variance X
Efficiency Variance X
Job Close Variance X
Material Rate Variance X
Resource Rate Variance X
Resource Sub Variance X
Usage Variance X

Job Close Variance - Positive Batch Size Variance X
Component Sub Variance X
Efficiency Variance X
Job Close Variance X
Material Rate Variance X Job Close Variance
Resource Rate Variance X
Resource Sub Variance X
Usage Variance X
WIP Valuation X
If there is a negative balance in the WIP Valuation, the Debit/Credit signs are switched during job close.
Cost Adjustment
Standard Cost Adjustment - Positive Inventory Valuation / Expense * X Revaluation of Standard
X Cost =>Material
Standard Cost Adjustment ** (Increase)
Expense X Revaluation of Standard
X Cost => Overhead
Material Overhead Absorption ** (Increase)

Standard Cost Adjustment - X Revaluation of Standard
Negative Standard Cost Adjustment ** Cost => Material
Inventory Valuation / Expense * X (Decrease)
Expense X Revaluation of Standard
X Cost => Overhead
Material Overhead Absorption ** (Decrease)

X Difference in costs
Layer Cost Adjustment - Positive Inventory Valuation / Expense * under Actual Cost
X Method ~Material
Offset
Inventory Valuation / Expense * under Actual Cost
X Method ~Overhead
Material Overhead Absorption

Layer Cost Adjustment - Negative Offset under Actual Cost
X Method ~ Material
Inventory Valuation / Expense *
Expense under Actual Cost
X Method ~Overhead
Material Overhead Absorption

Manual Cost Adjustment - Positive Inventory Valuation / Expense * X Difference in costs ~
Offset X Material
Inventory Valuation / Expense * X Difference in costs ~
Material Overhead Absorption X Overhead

Manual Cost Adjustment - Negative Offset X Difference in costs
Inventory Valuation / Expense * X ~Material
Expense X Difference in costs
Material Overhead Absorption X ~Overhead
Manual Receipt Cost Adjustment - X Change in Material Cost
Positive Inventory Valuation / Expense * under Std Cost Method
Offset X
X Change in Overhead
Inventory Valuation Cost under Std Cost
X Method
Material Overhead Absorption **
Receipt Cost Adjustment Variance / X When receipt cost
Expense * adjustment is
X performed for a receipt
Offset using STANDARD cost.
Receipt Cost Adjustment Variance / X When receipt cost
Expense * adjustment is
X performed for a receipt
Offset using STANDARD cost.

Manual Receipt Cost Adjustment - X Change in Material Cost
Negative Offset under Std Cost Method
X Change in Overhead
Expense
Cost under Std Cost
X
Method
Material Overhead Absorption **
X When receipt cost
Offset adjustment is
Receipt Cost Adjustment Variance / X performed for a receipt
Expense * using STANDARD cost.
X When receipt cost
Offset adjustment is
Receipt Cost Adjustment Variance / X performed for a receipt
Expense* using STANDARD cost.

X Material
Manual Receipt Cost Write-off- For the portion of
Positive Inventory Write Off receipt that is already
X consumed/depleted
writeoff entry is
Offset created.

Manual Receipt Cost Write-off- X
Negative Offset Material
Inventory Write Off X
Consigned Material
Purchasing
PO Delivery Consigned Inventory X
Material
Consigned Clearing X

Return to Supplier Consigned Clearing X
Material
Consigned Inventory X

Transfer to Consigned Consigned Inventory X
Material
Consigned Inventory Offset X

Transfer to Owned Consigned Inventory Offset X
Consumption - Material

PO Receipt Adjustment: Positive Consigned Inventory X
Material

PO Receipt Adjustment: Negative Consigned Clearing X
Material

PO Delivery Cost Adjustment Consigned Inventory X
Material
Cycle Counts
Cycle Count Transfer – Receipt Consigned Inventory X
Material
Consigned Valuation Unit Gain Loss X

Cycle Count Transfer – Issue Consigned Valuation Unit Gain Loss X
Material
Direct Organization Transfer

Shipment Consigned In-Transit X
Material

Trade In-Transit Issue Consigned Receivables X
(Intercompany Invoicing Option = Y / X Consigned Receivables
N) Consigned In-Transit
Expense X
Transfer Overheads

Trade In-Transit Receipt Consigned In-Transit X
(Intercompany Invoicing Option = Y / X Material
N) Consigned Clearing
Trade In-Transit Valuation /Expense * X
Transfer Overheads

Receipt Consigned Inventory X
Material
Consigned Inspection X

Transfer to Owned Inventory Valuation X
Material
Overhead
Standard Cost

Transfer to Consigned Trade In-Transit Valuation X
Material
Expense X
Overhead
Inter Organization Transfer

In-transit Shipment Consigned In-Transit X Material

Expense X
Transfer Overheads

(Intercompany Invoicing Option = Y / X Material
Trade In-Transit Valuation /Expense * X
Transfer Overheads

Receipt Consigned Inventory X
Material

Material
Inventory Valuation / Expense X
Overhead
Standard Cost

Material
Expense X
Overhead
Transfer Order: Direct Organization Transfer
Expense X
Transfer Overheads

Material
Expense X
Overhead

Material
Overhead
Standard Cost
Transfer Order: Inter Organization Transfer

(Intercompany Invoicing Option = Y/ X Material
Expense X
Overhead

(Intercompany Invoicing Option = Y/ X Material
Transfer Overheads

Receipt Cost Adjustment - Negative Consigned Inspection X
Material

Receipt Cost Adjustment - Positive Consigned Inventory X
Material

Cost Adjustment – Transfer to X
Consigned Consigned Inventory Material
Global Procurement
Trade In Transit Receipt Consigned In-Transit X
Material
(Intercompany Invoicing Option = Y/ N) Consigned Clearing X
Transfer Overheads

Consigned Receivables
(Intercompany Invoicing Option = Y/ N) Consigned In-Transit X
Expense X
Transfer Overheads

Consigned PO Delivery Consigned Inventory X
Material

Consigned PO Delivery Adjustment - X
Positive Consigned Inventory Material

Consigned PO Delivery Adjustment - X
Negative Consigned Clearing Material

Trade In Transit Return Consigned Clearing X
X Material
(Intercompany Invoicing Option = Y/ N) Consigned In-Transit
Expense X
Transfer Overheads

Trade In Transit Return Receipt Consigned In-Transit X
Material
(Intercompany Invoicing Option = Y/ N) Consigned Clearing X
Expense X
Transfer Overheads

Trade in Transit Receipt: Cost Adjustment Consigned Inventory X
Material

Intercompany Invoicing Option = Y / N Consigned Inventory X
Material
Expense * Transfer Overheads

SLA Costing Events - Accounting Distributions

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

SLA Costing Events - Accounting Distributions

Uploaded by

Copyright:

Available Formats

Oracle Corporation

Fusion Costing: Accounting Distributions Release 1.0.11

Intra Organization Transfers.......................................................................................................................................6

Direct Organization Transfer......................................................................................................................................7

Inter- Organization Transfer.......................................................................................................................................9

Transfer Orders: Sub-Inventory Transfer.................................................................................................................11

Transfer Orders: Direct Organization Transfer.........................................................................................................13

Transfer Order: Inter Organization Transfer............................................................................................................15

Receipts, Returns and Adjustments.........................................................................................................................19

Direct Organization Transfer....................................................................................................................................32

Inter Organization Transfer......................................................................................................................................33

Transfer Order: Direct Organization Transfer..........................................................................................................34

Transfer Order: Inter Organization Transfer............................................................................................................34

 Inventory can be tracked in an asset sub-inventory location or in an expense sub-inventory

Headers just above the Event Types denote Event Class.

 Account Alias Issue

Accounting Line Type Debit Credit Remarks

 Account Alias Receipt

Accounting Line Type Debit Credit Remarks

 Cycle Count Transfer - Issue

 Cycle Count Transfer - Receipt

Direct Organization Transfer

Inter- Organization Transfer

Trade In Transit Return Trade Clearing X

Event Type Name Accounting Line Type Debit Credit Remarks

Trade In Transit Receipt Trade In-Transit Valuation X Transfer Gain/Loss

TO Pick Issue Valuation Unit Transfer Gain Loss X

TO Trade In Transit Return Trade Clearing X

TO Trade In Transit Return X

Internal Drop Ship

Physical RMA Receipt Inventory Valuation / Expense * X

PO Receipt Adjustment: Positive X Material - similar logic as mentioned

Event Type Name Accounting Line Type Debit Credit Remarks

Event Type Name Accounting Line Type Debit Credit Remarks

Event Type Name Accounting Line Type Debit Credit Remarks

Return to Supplier: Acquisition X

Return to Supplier: Acquisition X

Event Type Name Accounting Line Type Debit Credit Remarks

Direct Organization Transfer

Inter Organization Transfer

Transfer Order: Inter Organization Transfer

You might also like