Product Line Accounting Setup

Product Line Accounting

Product line accounting makes it possible for you to do all of the following:

Implementing Product Line Accounting

To implement product line accounting, you must complete your product line accounting setup, then define and implement the Account Generation client extension. If you do not implement this extension, then the default WIP accounting classes defined in the Category Default WIP Accounting Classes window are used, but the accounts defined in the Category Accounts window are not, therefore your implementation will be incomplete.

Note: Although these accounts are provided as default accounts, if these extensions are used, then it is not recommended to write new extensions. You should use Subledger Accounting (SLA) to derive custom accounts. See: Oracle Subledger Accounting Implementation Guide.

See: Account Generation Extension

See also: Client Extensions and Product Line Accounting Setup

Product Line Accounting Setup

Prerequisites

Optionally, define a default category set and assign it to the Product Line Functional area.

See: Defining Category Sets, Oracle Inventory User's Guide and Defining Default Category Sets, Oracle Inventory User's Guide

To setup product line accounting, you must:

  1. Create product line categories and associate them with the default category set you assigned to the Product Line Functional Area.

  2. Define category accounts in the Category Accounts window. See: Defining Category Accounts.

    You can define category accounts for product line accounting in both standard and average costing organizations.

  3. Define the WIP Accounting Classes that you plan to use as your default WIP accounting classes. See: WIP Accounting Classes, Oracle Work in Process User's Guide and Defining WIP Accounting Classes, Oracle Work in Process User's Guide.

  4. Associate WIP accounting classes with categories. See: Associating WIP Accounting Classes with Categories.

    You can define WIP accounting classes at the category level in standard costing organization and at the cost group/category level in average costing organization.

Important: As of Release 11i, the Inter-organization Shipping Network window does not support additional product line accounts.

For more information about how default WIP Accounting Classes are used see: WIP Accounting Classe Defaults, Work in Process User's Guide.

Related Topics

Product Line Accounting