Migration of AX-IC Rules Into SLA

This appendix covers the following topics:

Overview of Global Accounting Rules into SLA

The Global Accounting Engine provides an accounting system for Oracle subledger applications, including Oracle Payables, Oracle Receivables, and Oracle Inventory that satisfies legal and fiscal requirements in certain countries.

You can create subledger journal entries for Inventory and Work In Process (WIP) material transactions using permanent inventory accounting rules. There are Subledger Accounting (SLA) rules with the same functionality that is made available by the Global Accounting Engine (AX) rules in previous releases. Inventory rules from prior releases of the Global Accounting Engine (AX) are compatible with rules in the Sub Ledger Accounting (SLA) architecture.

Setting Up AX Support for SLA

This section describes the setup required for AX support in Subledger Accounting (SLA).

the picture is described in the document text

the picture is described in the document text

To set up the Subledger Accounting Method:

  1. Navigate to the Subledger Accounting Methods window. In the Find Subledger Accounting Methods window, click the New button to create a new method, or enter search criteria to view existing subledger accounting methods.

    the picture is described in the document text

  2. Click New to create a Subledger Accounting Method for the Costing application.

  3. Save your work.

the picture is described in the document text

To set up the Item Category flexfield structure:

  1. Navigate to the Key Flexfield Segments window.

    the picture is described in the document text

  2. Enter Accounting (Item) Category details.

  3. Save your work.

To set up the Product Line Category:

  1. From the Inventory responsibility, navigate to the Categories window.

  2. Create a Category Code.

    the picture is described in the document text

  3. Create a Category Set.

    the picture is described in the document text

  4. Assign a Product Line Accounting functional area category set.

    the picture is described in the document text

  5. Save your work.

To set up Category Accounts:

  1. Navigate to the Category Accounts window.

  2. Enter Category Account details.

    the picture is described in the document text

  3. Save your work.

To assign the Product Line Category to items:

  1. Navigate to the Organization Item window.

  2. Select an Item from the Find Organization Items window..

  3. From the Tools menu, choose Categories. The Category Assignment window appears.

    the picture is described in the document text

  4. Enter the Category Set, Control Level, and Category.

  5. Save your work.

Setting Up for Inter-organization Transactions and Work In Process (WIP)

Migration of Rules

Existing inventory rules in the Global Accounting Engine will be migrated into the Subledger Accounting Architecture. The rules have been migrated according to t

he specifications defined in the following sections.

Receiving Transactions

Transaction Scenario Expected Journal Entry DR CR
Receipt into receiving inspection One-time item delivered to an expense destination 10 units of item @11.00

Receiving Area
Quantity * PO price

Expense
Quantity * PO price


110.00





110.00
Asset item delivered to an expense destination 10 units of item @11.00

Receiving Area
Quantity * PO price

Expense
Quantity * PO price


110.00





110.00
Asset item delivered to an inventory destination 10 units of item @11.00

Receiving Area
Quantity * PO price

Inventory AP Accrual
Quantity * PO price


110.00





110.00
  Expense item delivered to an inventory destination 10 units of item @11.00

Receiving Area
Quantity * PO price

Inventory AP Accrual
Quantity * PO price


110.00





110.00
  OSP Item with Shop Floor Destination 10 units of item @11.00

Receiving Area
Quantity * PO price

Inventory AP Accrual
Quantity * PO price


110.00





110.00
Return to Supplier from receiving inspection Asset item delivered to an inventory destination 10 units of item @11.00

Receiving Area
Quantity * PO price

Inventory AP Accrual
Quantity * PO price





110.00


110.00
PO Delivery to Expense Destination One-time item delivered to an expense destination 10 units of item @11.00

Receiving Area
Quantity * PO price

Expense
Quantity * PO price





110.00


110.00

Asset item delivered to an expense destination 10 units of item @11.00

Receiving Area
Quantity * PO price

Expense
Quantity * PO price





110.00


110.00
  Expense item delivered to an expense destination 10 units of item @11.00

Receiving Area
Quantity * PO price

Expense
Quantity * PO price





110.00


110.00

PO Delivery to Inventory Destination Asset item delivered to an asset sub inventory (standard cost) 10 units of item @ 11.00

Material
Quantity * standard cost (excluding material overhead)

Material Overhead
Quantity * material overhead cost

Overhead Absorption
Quantity * material overhead cost

Purchase Price Variance
Quantity * (PO price - standard cost excluding material
overhead)

Bridging
Quantity * PO price

Receiving Area
Quantity * PO price

Expense
Quantity * PO price


900.00


300.00





200.00









1100.00








300.00






1100.00


1100.00
  Asset item delivered to an expense sub inventory (standard cost) 10 units of item @11.00

Receiving Area
Quantity * PO price

Expense
Quantity * PO price





110.00


110.00

  Expense item delivered to an asset sub inventory (standard cost) 10 units of item @11.00

Receiving Area
Quantity * PO price

Expense
Quantity * PO price





110.00


110.00
  Expense item delivered to an expense sub inventory (standard cost) 10 units of item @11.00

Receiving Area
Quantity * PO price

Expense
Quantity * PO price





110.00


110.00
  Asset item delivered to an asset sub inventory (average cost) 10 units of item 200.6 @ 1500.00

Material
Quantity * PO price

Material Overhead
Quantity * PO price

Overhead Absorption
Quantity * material overhead cost

Bridging
Quantity * PO price

Receiving Area
Quantity * PO price

Expense
Quantity * PO price


15000.00


1500.00











15000.00








1500.00


15000.00


15000.00
  Asset item delivered to an expense sub inventory (average cost) 10 units of item 200.6 @ 1500.00

Receiving Area
Quantity * PO price

Expense
Quantity * PO price





15000.00


15000.00
  Expense item delivered to an asset sub inventory (average cost) 10 units of item 200.8 @ 1500.00

Receiving Area
Quantity * PO price

Expense
Quantity * PO price





15000.00


15000.00
  Expense item delivered to an expense sub inventory (average cost) 10 units of item 200.8 @ 1500.00

Receiving Area
Quantity * PO price

Expense
Quantity * PO price





15000.00


15000.00
Return to Receiving from expense destination   10 units of item @11.00

Receiving Area
Quantity * PO price

Expense
Quantity * PO price


110.00





110.00
Return to Receiving from inventory destination   10 units of item @11.00

Material
Quantity * standard cost (excluding material overhead)

Material Overhead
Quantity * material overhead cost

Overhead Absorption
Quantity * material overhead cost

Purchase Price Variance
Quantity * (PO price - standard cost excluding material overhead)

Bridging
Quantity * PO price

Receiving Area
Quantity * PO price

Expense
Quantity * PO price








300.00






1100.00


1100.00


900.00



300.00




200.00









11.00
Return to Supplier from Inventory Standard cost 3 units of item @ 11.00

Material
Quantity * standard cost (excluding material overhead)

Material Overhead
Quantity * material overhead cost

Overhead Absorption
Quantity * material overhead cost

Purchase Price Variance
Quantity * (PO price - standard cost excluding material overhead)

Bridging
Quantity * PO price

Receiving Area
Quantity * PO price

Expense
Quantity * PO price








9.00






33.00


33.00


27.00


9.00





6.00









33.00
  Average cost 1 unit of item @ 1500.00

Material
Quantity * PO price

Material Overhead
Quantity * material overhead cost

Overhead Absorption
Quantity * material overhead cost

Bridging
Quantity * PO price

Receiving Area
Quantity * PO price

Expense
Quantity * PO price








150.00


1500.00


1500.00


1500.00


150.00











1500.00
Transfer from Consignment to Regular Inventory Asset item delivered to an asset sub inventory (standard cost) 10 units of item @ 11.00

Material
Quantity * standard cost (excluding material overhead)

Material Overhead
Quantity * material overhead cost

Overhead Absorption
Quantity * material overhead cost

Purchase Price Variance
Quantity * (PO price - standard cost excluding material overhead)

Bridging
Quantity * PO price

AP Accrual
Quantity * PO price

Expense
Quantity * PO price


900.00


300.00





200.00









1100.00








300.00






1100.00


1100.00
Transfer from Regular to Consignment Inventory   10 units of item @ 11.00

Material
Quantity * standard cost (excluding material overhead)

Material Overhead
Quantity * material overhead cost

Overhead Absorption
Quantity * material overhead cost

Purchase Price Variance
Quantity * (PO price - standard cost excluding material overhead)

Bridging
Quantity * PO price

AP Accrual
Quantity * PO price

Expense
Quantity * PO price








300.00






1100.00


1100.00


900.00


300.00





200.00









1100.00
Delivery Adjustment on a PO Standard cost 2 units of item @ 11.00

Material
Quantity * standard cost (excluding material overhead)

Material Overhead
Quantity * material overhead cost

Overhead Absorption
Quantity * material overhead cost

Purchase Price Variance
Quantity * (PO price - standard cost excluding material overhead)

Bridging
Quantity * PO price

Receiving Area
Quantity * PO price

Expense
Quantity * PO price


18.00


6.00





4.00









22.00








6.00






22.00


22.00
  Average cost -10 units of item @ 1500.00

Material
Quantity * PO price

Material Overhead
Quantity * material overhead cost

Overhead Absorption
Quantity * material overhead cost

Bridging
Quantity * PO price

Receiving Area
Quantity * PO price

Expense
Quantity * PO price








1500.00





15000.00


15000.00


1500.00





15000.00





15000.00

Material Transactions

Transaction Scenario Expected Journal Entry DR CR
Miscellaneous Receipt, Account Receipt, Account Alias Receipt Miscellaneous receipt of an asset item from an asset sub inventory (standard cost) 10 units of item @ 55.00

Material
Quantity * standard cost

Material Overhead
Quantity * standard cost

Inventory Offset
Quantity * standard cost


500.00


50.00








550.00
Miscellaneous Issue, Account Issue, Account Alias Issue Miscellaneous issue of an asset item from an asset sub inventory (standard cost) 10 units of item @ 55.00

Material
Quantity * standard cost

Material Overhead
Quantity * standard cost

Inventory Offset
Quantity * standard cost








550.00


500.00


50.00
Miscellaneous Receipt, Account Receipt, Account Alias Receipt Miscellaneous receipt of an asset item from an asset subinventory (average cost) 1 unit of item @ 1100.00

Material
Quantity * current cost or quantity * entered cost

Material Overhead
Quantity * current cost or quantity * entered cost

Inventory Offset
Quantity * current cost or quantity * entered cost


1000.00


100.00








1100.00

Miscellaneous Issue, Account Issue, Account Alias Issue Miscellaneous issue of an asset item from an asset sub inventory (average cost) 1 unit of item @ 1100.00

Material
Quantity * current cost or quantity * entered cost

Material Overhead
Quantity * current cost or quantity * entered cost

Inventory Offset
Quantity * current cost or quantity * entered cost








1100.00


1000.00


100.00
Sub inventory Transfer Transfer of an asset item, between two asset sub inventories (standard cost) 4 units of item @ 12.00

Material (Sending sub inventory)
Quantity * standard cost

Material Overhead (Sending sub inventory)
Quantity * standard cost

Bridging (Sending sub inventory)
Quantity * standard cost

Material (Receiving sub inventory)
Quantity * standard cost

Material (Receiving sub inventory)
Quantity * standard cost

Bridging (Receiving sub inventory)
Quantity * standard cost








48.00


36.00


12.00


36.00


12.00











48.00
Transfer of an asset item, between an asset sub inventory and an expense sub inventory (standard cost) 4 units of item @ 12.00

Material (Sending sub inventory)
Quantity * standard cost

Material Overhead (Sending sub inventory)
Quantity * standard cost

Bridging (Sending sub inventory)
Quantity * standard cost

Expense (Receiving sub inventory)
Quantity * standard cost

Expense (Sending sub inventory)
Quantity * standard cost








48.00


48.00


36.00


12.00








48.00
Sub inventory Transfer Transfer of an asset item, between two asset sub inventories (average cost) 1 unit of item @ 1100.00

Material (Sending sub inventory)
Quantity * current cost

Material Overhead
Quantity * current cost or quantity * entered cost

Bridging (Sending sub-inventory)
Quantity * current cost

Material (Receiving sub-inventory)
Quantity * current cost

Material Overhead
Quantity * current cost or quantity * entered cost

Bridging (Receiving sub-inventory)
Quantity * current cost








1100.00


1000.00


100.00


1000.00


100.00











1100.00
Transfer of an asset item, between an asset sub inventory and an expense sub inventory (average cost) 1 unit of item @ 1100.00

Material (Sending sub inventory)
Quantity * standard cost

Material Overhead (Sending sub-inventory)
Quantity * standard cost

Bridging (Sending sub inventory)
Quantity * standard cost

Expense (Receiving sub-inventory)
Quantity * standard cost

Expense (Sending sub-inventory)
Quantity * standard cost








1100.00


1100.00


1000.00


100.00








1100.00
Sales Order pick, Internal Order pick Transfer of an asset item, between two asset sub-inventories (standard cost) 4 units of item @ 12.00

Material (Sending sub-inventory)
Quantity * standard cost

Material Overhead (Sending sub-inventory)
Quantity * standard cost

Bridging (Sending sub-inventory)
Quantity * standard cost

Material (Receiving sub-inventory)
Quantity * standard cost

Material (Receiving sub-inventory)
Quantity * standard cost

Bridging (Receiving sub-inventory)
Quantity * current cost








48.00


36.00


12.00


36.00


12.00











48.00
Sales Order issue Asset item (standard cost) 4 units of item @ 114.10

Material
Quantity * standard cost

Material Overhead
Quantity * standard cost

Resources
Quantity * standard cost

Overhead
Quantity * standard cost

Deferred Cost of Goods Sold
Quantity * standard cost














456.40


96.00


32.00


284.00


44.44
Asset item (average cost) 1 unit of item @ 2956.00

Material
Quantity * current cost

Material Overhead
Quantity * current cost

Resources
Quantity * current cost

Overhead
Quantity * current cost

Deferred Cost of Goods Sold
Quantity * current cost














2956.00


1500.00


150.00


1110.00


196.00
RMA Receipt Asset item in asset sub inventory (standard cost) 2 units of item 300.1

Material
Quantity * standard cost

Material Overhead
Quantity * standard cost

Resources
Quantity * standard cost

Overhead
Quantity * standard cost

Deferred Cost of Goods Sold
Quantity * standard cost


48.00


16.00


142.00


22.20














228.20
Asset item in asset sub-inventory (average cost) 1 unit of item @ 2956.00

Material
Quantity * current cost

Material Overhead
Quantity * current cost

Resources
Quantity * current cost

Overhead
Quantity * current cost

Deferred Cost of Goods Sold
Quantity * current cost


1500.00


150.00


1110.00


196.00














2956.00
Move Order Issue Asset item issued from an asset sub-inventory (standard cost) 10 units of item @ 55.00

Material
Quantity * standard cost

Material Overhead
Quantity * standard cost

Move Order Account
Quantity * standard cost








550.00


500.00


50.00
Asset item issued from an asset sub-inventory (average cost) 10 units of item @ 55.00

Material
Quantity * average cost

Material Overhead
Quantity * average cost

Move Order Account
Quantity * average cost








550.00


500.00


50.00
Move Order Transfer, Internal Order Transfer Transfer of an asset item, between two asset sub-inventories (standard cost) 4 units of item @ 12.00

Material (Sending sub-inventory)
Quantity * standard cost

Material Overhead (Sending sub-inventory)
Quantity * standard cost

Bridging (Sending sub-inventory)
Quantity * standard cost

Material (Receiving sub-inventory)
Quantity * standard cost

Material (Receiving sub-inventory)
Quantity * standard cost

Bridging (Receiving sub-inventory)
Quantity * current cost








48.00


36.00


12.00


36.00


12.00











48.00
Transfer of an asset item, between two asset sub-inventories (average cost) 4 units of item @ 12.00

Material (Sending sub-inventory)
Quantity * average cost

Material Overhead (Sending sub-inventory)
Quantity * average cost

Bridging (Sending sub-inventory)
Quantity * average cost

Material (Receiving sub-inventory)
Quantity * average cost

Material (Receiving sub-inventory)
Quantity * average cost

Bridging (Receiving sub-inventory)
Quantity * average cost








48.00


36.00


12.00


36.00


12.00











48.00
Internal Order Issue Asset item issued from asset sub-inventory (average cost) 1 unit of item @ 1100.00

Material
Quantity * current cost

Material Overhead
Quantity * current cost or quantity * entered cost

Internal Requisition Distribution Charge Account
Quantity * current cost








1100.00


1000.00


100.00
Cycle Count Adjustment Standard cost -1 unit of item @ 12.00

Material
Quantity difference * standard cost

Material Overhead
Quantity * standard cost difference

Inventory Offset
Quantity difference * standard cost








12.00


9.00


3.00
Average cost -1 unit of item @ 2200.00

Material
Quantity difference * current cost

Material Overhead
Quantity difference * current cost

Inventory Offset
Quantity difference * current cost








2200.00


2000.00


200.00
Physical Inventory Adjustment Standard cost -2 units of item @ 132.00

Material
Quantity difference * standard cost

Material Overhead
Quantity * standard cost difference

Inventory Offset
Quantity difference * standard cost








264.00


240.00


24.00
Average cost -2 units of item @ 1320.00

Material
Quantity difference * current cost

Material Overhead
Quantity difference * current cost

Inventory Offset
Quantity difference * current cost








2640.00


2400.00


240.00
Average Cost Update 1 unit of item 200.6

Material
Quantity * average cost difference

Material Overhead
Quantity * current cost

Cost Update Adjustment Account
Quantity * average cost difference


200.00


20.00








220.00
Standard Cost Update 9 units of item @ 77.00

Material
Quantity * standard cost difference

Material Overhead
Quantity * standard cost difference

Cost Update Adjustment Account
Quantity * standard cost difference


630.00


63.00








693.00

Inter-organization Transactions

Transaction Scenario Expected Journal Entry DR CR
Transfers Between two Organizations (In-transit, FOB : Receipt) Sending Organization: standard cost Receiving Organization: standard cost Ship to in-transit sourced from Inventory

Material (Sending Organization)
Quantity * standard cost

Material Overhead (Sending Organization)
Quantity * standard cost

Bridging (Sending Organization)
Quantity * standard cost

In-transit (Sending Organization: Inter org account) Quantity * standard cost

In-transit Bridging (Sending Organization: Inter org account)
Quantity * standard cost








60.00


60.00


45.00


15.00








60.00
Receive from In-transit

In-transit (Sending Organization: Inter org account)
Quantity * standard cost

In-transit Bridging (Sending Organization: Inter org account)
Quantity * standard cost

Transfer (Sending Organization: Inter org account)
Transfer cost

Freight (Sending Organization: Freight account)
Freight cost

Receivables (Sending Organization: Inter org account ) (Quantity * standard cost) + transfer cost + freight cost

Revenue (Sending Organization: Inter org account)
Quantity * standard cost

Material (Receiving Organization)
Quantity * standard cost (excluding material overhead)

Material Overhead (Receiving Organization)
Quantity * material overhead cost

Overhead Absorption (Receiving Organization) Quantity * material overhead cost

Inter-org Price Variance (Receiving Organization: Inter org account)
Quantity * (transaction cost - standard cost excluding material overhead)

Bridging (Receiving Organization)
Quantity * transaction cost

Payables (Receiving Organization: Inter org account)
Quantity * transaction cost

Expense (Receiving Organization: Inter org account)
Quantity * transaction cost





60.00









78.00





45.00


15.00






33.00










78.00


60.00






11.00


7.00





60.00








15.00







78.00


78.00
Sending Organization: standard cost Receiving Organization: average cost Ship to in-transit sourced from Inventory

Material (Sending Organization)
Quantity * standard cost

Material Overhead (Sending Organization)
Quantity * standard cost

Bridging (Sending Organization)
Quantity * standard cost

In-transit (Sending Organization: Inter org account)
Quantity * standard cost

In-transit Bridging (Sending Organization: Inter org
account)
Quantity * standard cost








60.00


60.00


45.00


15.00








60.00
Receive from In-transit

In-transit (Sending Organization: Inter org account)
Quantity * standard cost

In-transit Bridging (Sending Organization: Inter org account)
Quantity * standard cost

Transfer (Sending Organization: Inter org account)
Transfer cost

Freight (Sending Organization: Freight account)
Freight cost

Receivables (Sending Organization: Inter org account ) (Quantity * standard cost) + transfer cost + freight cost

Revenue (Sending Organization: Inter org account)
Quantity * standard cost

Material (Receiving Organization)
quantity * transaction cost

Material Overhead (Receiving Organization)
Quantity * material overhead cost

Overhead Absorption (Receiving Organization)
Quantity * material overhead cost

Bridging (Receiving Organization)
Quantity * transaction cost

Payables (Receiving Organization: Inter org account)
Quantity * transaction cost

Expense (Receiving Organization: Inter org account)
Quantity * transaction cost





60.00









78.00





78.00


7.80






78.00





78.00


60.00






11.00


7.00





60.00








7.80






78.00
Sending Organization : average cost Receiving Organization : average cost Shipment Transaction
1 unit of item 200.6

Material (Sending Organization)
Quantity * current cost

Material Overhead (Sending Organization)
Quantity * current cost

In-transit (Sending Organization : Inter org account)
Quantity * current cost

Bridging (Sending Organization)
Quantity * current cost

In-transit Bridging (Sending Organization : Inter org account)
Quantity * current cost









1100.00


1100.00



1000.00


100.00








1100.00
Receipt Transaction

In-transit (Sending Organization: Inter org account)
Quantity * current cost

Transfer (Sending Organization : Inter org account)
Transfer cost

Freight (Sending Organization : Inter org account)
Freight cost

Receivables (Sending Organization: Inter org account) (quantity * current cost) + transfer cost + transportation cost

In-transit Bridging (Sending Organization : Inter org account)
Quantity * current cost

Revenue (Sending Organization : Inter org account)
Quantity * current cost

Material (Receiving Organization)
Quantity * transaction cost

Material Overhead (Receiving Organization)
Quantity * material overhead cost

Overhead Absorption (Receiving Organization)
Quantity * material overhead cost

Payables (Receiving Organization : Inter org account)
Quantity * transaction cost

Bridging (Receiving Organization)
Quantity * transaction cost

Expense (Receiving Organization : Inter org account)
Quantity * transaction cost











1565.00



1100.00






1565.00


156.50












1565.00


1100.00


145.00


320.00










1100.00








156.50


1565.00


1565.00
Sending Organization : average cost Receiving Organization : standard cost Shipment Transaction
1 unit of item 200.6

Material (Sending Organization)
Quantity * current cost

Material Overhead (Sending Organization)
Quantity * current cost

In-transit (Sending Organization : Inter org account)
Quantity * current cost

Bridging (Sending Organization)
Quantity * current cost

In-transit Bridging (Sending Organization : Inter org account)
Quantity * current cost









1100.00


1100.00



1000.00


100.00








1100.00
Receipt Transaction

In-transit (Sending Organization: Inter org account)
Quantity * current cost

Transfer (Sending Organization : Inter org account)
Transfer cost

Freight (Sending Organization : Inter org account)
Freight cost

Receivables (Sending Organization: Inter org account) (quantity * current cost) + transfer cost + transportation cost

In-transit Bridging (Sending Organization : Inter org account)
Quantity * current cost

Revenue (Sending Organization : Inter org account)
Quantity * current cost

Material (Receiving Organization)
Quantity * transaction cost

Material Overhead (Receiving Organization)
Quantity * material overhead cost

Overhead Absorption (Receiving Organization)
Quantity * material overhead cost

Inter-org Price Variance (Receiving Organization)
Quantity * (transaction cost - standard cost excluding material overhead)

Payables (Receiving Organization : Inter org account)
Quantity * transaction cost

Bridging (Receiving Organization)
Quantity * transaction cost

Expense (Receiving Organization : Inter org account)
Quantity * transaction cost











1565.00



1100.00






1200.00


120.00






365.00









1565.00


1100.00


145.00


320.00










1100.00








120.00







1565.00


1565.00
Transfers Between two Organizations (Intransit, FOB : Shipment) Sending Organization : standard cost Receiving Organization : standard cost Ship to In-transit sourced from Inventory

Material (Sending Organization)
Quantity * standard cost

Material Overhead (Sending Organization)
Quantity * standard cost

Bridging (Sending Organization)
Quantity * standard cost

Freight (Receiving Organization : Freight account)
Freight cost

Transfer (Sending Organization : Inter org account)
Transfer cost

Receivables (Sending Organization : Inter org account)
(quantity * standard cost) + transfer cost only

Revenue (Sending Organization : Inter org account)
Quantity * standard cost

In-transit (Receiving Org : Inter org account)
Quantity * standard cost excluding material overhead

Inter-org Price Variance (Receiving Org : Inter org account)
Quantity * (transaction cost - standard cost excluding material overhead)

In-transit Bridging (Receiving Org : Inter org account)
Quantity * transaction cost

Payables (Receiving Org : Inter org account)
Quantity * transaction cost

Expense (Receiving Organization : Inter org account)
Quantity * transaction cost








60.00








71.00






45.00


33.00











78.00


45.00


15.00





7.00


11.00






60.00











78.00


71.00
Receive from In-transit

Material (Receiving Organization)
(Broken down into its cost elements)
Quantity * standard cost

Material Overhead (Receiving Organization)
Quantity * material overhead cost

Overhead Absorption (Receiving Organization)
Quantity * material overhead cost

Bridging (Receiving Organization)
Quantity * standard cost

In-transit (Receiving Organization : Inter org account)
Quantity * standard cost

In-transit Bridging (Receiving Organization : Inter org account)
Quantity * standard cost


45.00



15.00











78.00









15.00


78.00


45.00
Sending Organization : standard cost Receiving Organization : average cost Ship to In-transit sourced from Inventory

Material (Sending Organization)
Quantity * standard cost

Material Overhead (Sending Organization)
Quantity * standard cost

Bridging (Sending Organization)
Quantity * standard cost

Freight (Receiving Organization : Freight account)
Freight cost

Transfer (Sending Organization : Inter org account)
Transfer cost

Receivables (Sending Organization : Inter org account)
(quantity * standard cost) + transfer cost only

Revenue (Sending Organization : Inter org account)
Quantity * standard cost

In-transit (Receiving Org : Inter org account)
Quantity * transaction cost

In-transit Bridging (Receiving Org : Inter org account)
Quantity * transaction cost

Payables (Receiving Org : Inter org account)
Quantity * transaction cost

Expense (Receiving Org : Inter org account)
Quantity * transaction cost








60.00








71.00






78.00








78.00


45.00


15.00





7.00


11.00






60.00





78.00


71.00
Receive from In-transit

Material (Receiving Organization)
Quantity * transaction cost

Material Overhead (Receiving Organization)
Quantity * material overhead cost

Overhead Absorption (Receiving Organization)
Quantity * material overhead cost

Bridging (Receiving Organization)
Quantity * transaction cost

In-transit (Receiving Organization : Inter org account)
Quantity * transaction cost

In-transit Bridging (Receiving Organization : Inter org account)
Quantity * transaction cost


78.00


7.80











78.00








7.80


78.00


78.00
Sending Organization : average cost Receiving Organization : average cost Shipment Transaction
1 unit of item 200.6

Material (Sending Organization)
Quantity * current cost

Material Overhead (Sending Organization)
Quantity * current cost

Bridging (Sending Organization)
quantity * current cost

Transfer (Sending Organization : Inter Org Account)
Transfer cost

Freight (Receiving Organization : freight account)
Freight cost

Receivables (Sending Organization : Inter Org Account)
(quantity * current cost) + transfer cost + transportation cost

Revenue (Sending Organization : Inter Org Account)Quantity * current cost

In-transit (Receiving Org : Inter org account)
Quantity * Transaction cost

In-transit Bridging (Receiving Org : Inter org account)
Quantity * transaction cost

Payables (Receiving Org : Inter org account)
Quantity * transaction cost

Expense (Receiving Org : Inter org account)
Quantity * transaction cost









1100.00








1245.00







1565.00








1565.00



1000.00


100.00





145.00


320.00







1100.00





1565.00


1245.00
Receipt Transaction

Material (Receiving Organization)
Quantity * transaction cost

Material Overhead (Receiving Organization)
Quantity * material overhead cost

Overhead Absorption (Receiving Organization)
Quantity * material overhead cost

Bridging (Receiving Organization)
Quantity * transaction cost

In-transit (Receiving Organization)
Quantity * transaction cost

In-transit Bridging (Inter org)
Quantity * transaction cost


1565.00


156.50











1565.00








156.50


1565.00


1565.00
Sending Organization : average cost Receiving Organization : standard cost Shipment Transaction
1 unit of item 200.6

Material (Sending Organization)
Quantity * current cost

Material Overhead (Sending Organization)
Quantity * current cost

Bridging (Sending Organization)
Quantity * current cost

Transfer (Sending Organization : Inter Org Account)
Transfer cost

Freight (Receiving Organization : freigth account)
Freight cost

Receivables (Sending Organization : Inter Org Account)
(quantity * current cost) + transfer cost + transportation cost

Revenue (Sending Organization : Inter Org Account)
Quantity * current cost

In-transit (Receiving Org : Inter org account)
Quantity * transaction cost

In-transit Bridging (Receiving Org : Inter org account)
Quantity * transaction cost

Payables (Receiving Org : Inter org account)
Quantity * transaction cost

Expense (Receiving Org : Inter org account)
Quantity * transaction cost









1100.00








1245.00







1565.00









1565.00



1000.00


100.00





145.00


320.00







1100.00





1565.00


1245.00
Receipt Transaction

Material (Receiving Organization)
quantity * transaction cost

Material Overhead (Receiving Organization)
quantity * material overhead cost

Overhead Absorption (Receiving Organization)
quantity * material overhead cost

Inter-org Price Variance (Receiving Organization)
quantity * (transaction cost - standard cost excluding material overhead)

Bridging (Receiving Organization)
quantity * transaction cost

In-transit (Receiving Organization)
quantity * transaction cost

In-transit Bridging (Inter org)
quantity * transaction cost


1200.00


120.00





365.00









1565.00








120.00






1565.00


1565.00
Direct Transfer between two Organizations Sending Organization : standard cost Receiving Organization : standard cost 5 units of item @ 12.00

Material (Sending Organization)
Quantity * standard cost

Material Overhead (Sending sub-inventory)
Quantity * standard cost

Bridging (Sending Organization)
Quantity * standard cost

Transfer (Sending Organization : Inter org account)
tTransfer cost

Freight (Sending Organization : freight account)
Freight cost

Receivables (Sending Organization : Inter org account)
(quantity * standard cost) + transfer cost + freight cost

Revenue (Sending Organization : Inter org account)
Quantity * standard cost

Material (Receiving Organization)
Quantity * standard cost (excluding material overhead)

Material overhead (Receiving Organization)
Quantity * material overhead cost

Overhead Absorption (Receiving Organization)
Quantity * material overhead cost

Inter-org Price Variance (Receiving Organization)
Quantity * (transaction cost - standard cost excluding material overhead)

Bridging (Receiving Organization)
Quantity * transaction cost (excluding material overhead)

Payables (Receiving Organization : Inter org account)
Quantity * transaction cost

Expense (Receiving Organization : Inter org account)
Quantity * transaction cost








60.00








78.00





45.00


15.00






33.00









78.00


45.00


15.00





11.00


7.00





60.00








15.00






78.00


78.00
Sending Organization : standard cost Receiving Organization : average cost 5 units of item @ 12.00

Material (Sending Organization)
Quantity * standard cost

Material Overhead (Sending sub inventory)
Quantity * standard cost

Bridging (Sending Organization)
Quantity * standard cost

Transfer (Sending Organization : Inter org account)
transfer cost

Freight (Sending Organization : freight account)
Freight cost

Receivables (Sending Organization : Inter org account)
(quantity * standard cost) + transfer cost + freight cost

Revenue (Sending Organization : Inter org account)
Quantity * standard cost

Material (Receiving Organization)
Quantity * transaction cost

Material overhead (Receiving Organization)
Quantity * material overhead cost

Overhead Absorption (Receiving Organization)
Quantity * material overhead cost

Bridging (Receiving Organization)
Quantity * transaction cost

Payables (Receiving Organization : Inter org account)
Quantity * transaction cost

Expense (Receiving Organization : Inter org account)
Quantity * transaction cost








60.00








78.00





78.00


7.80












78.00


45.00


15.00





11.00


7.00





60.00








7.80


78.00


78.00
Direct Transfer between two Organizations Sending Organization : average cost Receiving Organization : average cost 1 unit of item 200.6

Material
Quantity * current cost

Material Overhead
Quantity * current cost

Transfer (Sending Organization : Inter org account)
Transfer cost

Freight (Sending Organization : Inter org account)
Freight cost

Receivables (Sending Organization : Inter org account)
(quantity * current cost) + transfer cost + transportation cost

Bridging (Sending Organization)
Quantity * current cost

Revenue (Sending Organization : Inter org account)
Quantity * current cost














1280.00



1100.00


1000.00


100.00


100.00


80.00









1100.00
Material (Receiving Organization)
Quantity * transaction cost

Material overhead (Receiving Organization)
Quantity * material overhead cost

Overhead Absorption (Receiving Organization)
Quantity * material overhead cost

Payables (Receiving Organization : Inter org account)
Quantity * transaction cost

Bridging (Receiving Organization)
Quantity * transaction cost

Expense (Receiving Organization : Inter org account)
Quantity * transaction cost
1280.00


128.00











1280.00






128.00


1280.00


1280.00
Sending Organization : average cost Receiving Organization : standard cost 1 unit of item 200.6

Material (Sending Organization)
Quantity * current cost

Material Overhead
Quantity * current cost

Transfer (Sending Organization : Inter org account)
Transfer cost

Freight (Sending Organization : Inter org account)
Freight cost

Receivables (Sending Organization : Inter org account)
(quantity * current cost) + transfer cost + transportation cost

Bridging (Sending Organization)
Quantity * current cost

Revenue (Sending Organization : Inter org account)
Quantity * current cost














1280.00



1100.00


1000.00


100.00


100.00


80.00









1100.00
Material (Receiving Organization)
Quantity * Standard cost

Material Overhead (Receiving Organization)
Quantity * material overhead standard cost

Overhead Absorption (Receiving Organization)
Quantity * material overhead standard cost

Inter-org Price Variance (Receiving Organization)
quantity * (transaction cost - standard cost excluding material overhead)

Payables (Receiving Organization : Inter org account)
Quantity * transaction cost

Bridging (Receiving Organization)
Quantity * transaction cost

Expense (Receiving Organization : Inter org account)
Quantity * transaction cost
1200.00


120.00





80.00









1280.00






120.00






1280.00


1280.00

WIP Transactions

Transaction Scenario Expected Journal Entry DR CR
WIP Component Issue 10 units of item 200.1 and 10 units of item 200.2

Material
Quantity * standard cost

Material Overhead
Quantity * standard cost

Bridging
Quantity * standard cost

WIP Material
Quantity * standard cost

WIP Material Overhead
Quantity * standard cost

WIP Bridging
Quantity * standard cost








320.00


240.00


80.00


240.00


80.00











320.00
WIP Negative Component Issue 2 units of component @ 12.00

Material
Quantity * standard cost

Material Overhead
Quantity * standard cost

Bridging
Quantity * standard cost

WIP Material
Quantity * standard cost

WIP Material Overhead
Quantity * standard cost difference

WIP Bridging
Quantity * standard cost


18.00


6.00












24.00








24.00


18.00


6.00
WIP Component Return 1 unit of item @ 12.00

Material
Quantity * standard cost

Material Overhead
Quantity * standard cost

Bridging
Quantity * standard cost

WIP Material
Quantity * standard cost

WIP Material Overhead
Quantity * standard cost

WIP Bridging
Quantity * standard cost


9.00


3.00











12.00








12.00


9..00


3.00
WIP Negative Component Return
2 units of component @ 12.00

Material
Quantity * standard cost

Material Overhead
Quantity * standard cost

Bridging
Quantity * standard cost

WIP Material
Quantity * standard cost

WIP Material Overhead
Quantity * standard cost

WIP Bridging
Quantity * standard cost








24.00


18.00


6.00


18.00


6.00











24.00
WIP Scrap 1 units of assembly 300.1

WIP Material (scrap job cost)

WIP Material Overhead
quantity * standard cost

WIP Resource
quantity * standard cost

WIP Overhead
quantity * standard cost

User entered (depending on WIP setup options)
(scrap job cost)













144.10


24.00

8.00


71.00


11.10
WIP Assembly Completion Without WIP Outside Processing 9 units of item 300.1

Material
Quantity * standard cost

Material Overhead
quantity * standard cost

WIP Resource
Quantity * standard cost

WIP Overhead
Quantity * standard cost

Bridging
Quantity * standard cost

WIP Material
Quantity * standard cost

WIP Material Overhead
Quantity * standard cost

WIP Resource
Quantity * standard cost

WIP Overhead
Quantity * standard cost

WIP Bridging
Quantity * standard cost


216.00


72.00


639.00


99.99

















1026.99














1026.99


216.00


72.00


639.00


99.99
With WIP Outside Processing 10 units of item @ 55.00

Material
Quantity * standard cost

Material Overhead
quantity * standard cost

WIP Resource
Quantity * standard cost

WIP Overhead
Quantity * standard cost

WIP Outside Processing
Qantity * standard cost

Bridging
Quantity * standard cost

WIP Material
Quantity * standard cost

WIP Material Overhead
Quantity * standard cost

WIP Resource
Quantity * standard cost

WIP Overhead
Quantity * standard cost

WIP Outside Processing
Quantity * standard cost

WIP Bridging
Quantity * standard cost


500.00


50.00


1600.00


160.00


300.00




















2610.00

















2610.00


500.00


50.00


1600.00


160.00


300.00
WIP Assembly Return 2 units of item 300.1

Material
Quantity * standard cost

Material Overhead
Quantity * standard cost

Resource
Quantity * standard cost

Overhead
Quantity * standard cost

Bridging
Quantity * standard cost

WIP Material
Quantity * standard cost

WIP Material Overhead
Quantity * standard cost

WIP Resource
Quantity * standard cost

WIP Overhead
Quantity * standard cost

WIP Bridging
Quantity * standard cost














228.20


18.00


16.00


142.00


22.20


48.00


16.00


142.00


22.20

















228.20
WIP Move at receipt PO (for outside processing) 10 units of item @ 25.00

Receipt account
Quantity * PO price

Outside Processing
Quantity * standard cost

Variance S/T (from resource)
Quantity * (standard cost - PO price)

Bridging
Quantity * standard cost

WIP Bridging
Quantity * standard cost





300.00





250.00


250.00





50.00





250.00

Intercompany Transactions

Transaction Scenario Expected Journal Entry DR CR
Intercompany Drop Ship Flow Scenario: Internal drop shipment – Sending Org Standard Costing
a) Sales Order Pick – Sending Organization
Sending organization -10 Units @ organization frozen cost

Material sending sub-inventory
Quantity * sending organization cost

Bridging sending sub-inventory
Quantity * sending organization cost

Material staging sub-inventory
Quantity * sending organization cost

Bridging staging sub-inventory
Quantity * sending organization cost






10.00


10.00



10.00








10.00
b) Logical Intercompany Sales Issue – Sending organization Sending Organization

Intercompany Cost of Goods Sold
Quantity * Transfer Price

Inventory Valuation Sending organization
Quantity * Transfer Price


20.00





20.00
c) Logical Intercompany Shipment Receipt Selling Organization

Inventory Valuation Selling organization
Quantity * Transfer Price

Bridging Selling Organization
Quantity * Transfer Price

Expense
Quantity * Transfer Price

Intercompany AP Accrual
Quantity * Transfer Price


20.00





20.00





20.00





20.00
d) Logical Sales Order Issue Selling Organization

Deferred Cost of Goods Sold
Quantity * Transfer Price

Inventory Valuation
Quantity * Transfer Price


20.00





20.00
Intercompany Drop Ship Flow Scenario: Internal drop shipment – Sending Org Average Costing

a) Sales Order Pick – Sending Organization
Sending organization -10 Units @ organization current cost

Material Sending Cost Group
Quantity * sending organization cost

Bridging Sending Cost Group
Quantity * sending organization cost

Material Sending Cost Group
Quantity * sending organization cost

Bridging sending Cost Group
Quantity * sending organization cost






11.00


11.00



11.00








11.00
b) Logical Intercompany Sales Issue – Sending organization Sending Organization

Intercompany Cost of Goods Sold
Quantity * Transfer Price

Inventory Valuation Sending organization
Quantity * Transfer Price


30.00





30.00
c) Logical Intercompany Shipment Receipt Selling Organization

Inventory Valuation Selling organization
Quantity * Transfer Price

Bridging Selling Organization
Quantity * Transfer Price

Expense
Quantity * Transfer Price

Intercompany AP Accrual
Quantity * Transfer Price


30.00





30.00





30.00





30.00
d) Logical Sales Order Issue Selling Organization

Deferred Cost of Goods Sold
Quantity * Transfer Price

Inventory Valuation
Quantity * Transfer Price


30.00





30.00
Intercompany Global Procurement Receiving Organizaton – Standard Costing
a) Receive
Receiving Organization

Inventory Valuation
Quantity * Frozen Cost

Intercompany AP Accrual
Quantity * PO Price

Purchase Price Variance
Quantity * price difference

Bridging
Quantity * Frozen Cost

Expense
Quantity * Frozen Cost


130.00











130.00





100.00


30.00


130.00
Buying Organization
b) Logical Receive
Buying Organization

Clearing
Quantity * PO Price

Intercompany AP Accrual
Quantity * PO Price


100.00





100.00
c) Logical Delivery Buying Organization

Inventory Valuation
Quantity * PO Price

Clearing
Quantity * PO Price

Bridging
Quantity * PO Price

Expense
Quantity * PO Price


100.00








100.00





100.00


100.00
d) Logical intercompany sales order issue Buying Organization

Inventory Valuation
Quantity * PO Price

Intercompany COGS
Quantity * PO Price





100.00


100.00
Intercompany Global Procurement Receiving Organization – Standard Costing
a) Receive
Receiving Organization

Inventory Valuation
Quantity * PO Price

Intercompany AP Accrual
Quantity * PO Price

Bridging
Quantity * PO Price

Expense
Quantity * PO Price


100.00








130.00





100.00


130.00
Buying Organization
b) Logical Receive
Procuring Organization

Clearing
Quantity * PO Price

Intercompany AP Accrual
Quantity * PO Price


100.00





100.00
c) Logical Delivery Procuring Organization

Inventory Valuation
Quantity * PO Price

Clearing
Quantity * PO Price

Bridging
Quantity * PO Price

Expense
Quantity * PO Price


100.00








100.00





100.00


100.00
d) Logical intercompany sales order issue Procuring Organization

Inventory Valuation
Quantity * PO Price

Intercompany COGS
Quantity * PO Price





100.00


100.00
Intercompany External Drop Shipment a) Logical receipt Procuring Organization

Intercompany AP Accrual
Quantity * PO Price

Clearing
Quantity * PO Price





100.00


100.00
b) Logical deliver Procuring Organization

Inventory Valuation
Quantity * PO Price

Clearing
Quantity * PO Price

Bridging
Quantity * PO Price

Expense
Quantity * PO Price


100.00








100.00





100.00


100.00
c) Logical intercompany sales issue Procuring Organization

Intercompany COGS
Quantity * PO Price

Inventory Valuation
Quantity * PO Price

Bridging
Quantity * PO Price

Expense
Quantity * PO Price


100.00





100.00





100.00





100.00
d) Logical intercompany shipment receipt Selling Organization

Inventory Valuation
Quantity * Transfer Price

Intercompany AP Accrual
Quantity * Transfer Price

Bridging
Quantity * Transfer Price

Expense
Quantity * Transfer Price


130.00








130.00





130.00


130.00
e) Logical Sales Order Issue Selling Organization

Deferred Cost Of Goods Sold
Quantity * Transfer Price

Inventory Valuation
Quantity * Transfer Price

Bridging
Quantity * Transfer Price

Expense
Quantity * Transfer Price


130.00





130.00





130.00





130.00

Supporting References

The Inventory rules in the Global Accounting Engine use the feature Control Account Balances to give you a detailed balance per account and period at the organization level by subinventory or cost group. A similar feature exists in the Subledger Accounting Architecture but it is limited to the definition of the accounts as third party control accounts, and this definition is not natural with the accounts used in Inventory (third party control accounts are used in Payables and Receivables). To keep the same functionality, the SLA PI rules uses the Supporting References functionality as follows:

Supporting Reference Header Supporting Reference Details
Inventory Value Organization
Subinventory
Cost Group

The Supporting Reference Inventory Value will be assigned to all the journal lines that use a subinventory valuation account in the events for Inventory transactions.

Upgrade

As part of the upgrade from release 11i to release 12, if you are using the inventory rules in the Global Accounting Engine, then you must migrate the accounting data from AX to SLA. The upgrade program must migrate the following data into SLA: