Use the Enhanced Period Costing Account Balances Report by Supporting References for Account Reconciliation

You can view cost accounting balances in summary and detail mode to reconcile the Cost Accounting subledger with the General Ledger. The Period Costing Account Balances by Supporting References Report can be generated from the Scheduled Processes work area.

Scheduled Processes: Period Costing Account Balances by Supporting References Report

The following are some of the new reconciliation reporting capabilities introduced as part of this update:

• The report serves as a Trial Balance for the Cost Accounting subledger.

• You can view and reconcile account balances in the context of the Cost Accounting subledger. This can be especially useful during reconciliation if you use same accounts for multiple journal sources.

• You can view and reconcile summary and detail balances for a period at the ledger level or for each cost organization and cost book depending upon your enterprise structure and the level at which you reconcile accounts.

You can view and reconcile account balances at the following levels: 

• Accounting Line Type:  View summary opening balance, period activity (debits and credits), and closing balance for each cost accounting type.

Summary of Costing Account Balances by Accounting Line Type

• Accounting Line Type and Account: View summary opening balance, period activity (debits and credits), and closing balance for each cost accounting line type and account.  Use this view to review balances at account level for an accounting line type. Pay attention to same account being used for multiple accounting line types and confirm this as per expectation. Drill down to Period Activity Details to view transaction information and ensure transactions are correctly classified.

Summary of Costing Account Balances by Accounting Line Type and Account

• The Period Activity details view provides a clear link between Inventory and Costing transaction attributes, cost distribution and General Ledger accounting information distributions to help in reconciliation.

• View Period Activity Details to understand change to account balance during the period to substantiate account balances. Review transaction information to ensure transactions are classified correctly from an accounting perspective and flag any reconciliation issues.

 View Transactions Contributing to Period Activity Along with Key Costing and Accounting Information

Steps to Enable

Use the Opt In UI to enable this feature. For instructions, refer to the Optional Uptake of New Features section of this document.

Offering: Manufacturing and Supply Chain Materials Management

•  Opt in to the below feature to use this report.

Feature Opt-in

Tips And Considerations

• Important: This report works on the basis of supporting references defined in Subledger Accounting for each journal line rule. By default, all predefined journal line rules for costing have the supporting references listed here:
  • Cost Organization
  • Cost Book
  • Inventory Organization
  • Item
  • Journal Line Rule

• Important: If you define custom journal line rules for Cost Accounting, you must ensure that the above supporting references are updated against each journal line rule associated with the active journal entry rule set (JERS). Journal lines rules seeded in the application already have supporting references updated.

• Important: If the above supporting references aren't enabled against the journal lines, this report won't display balances for the corresponding accounting line types and accounts. The report, however, will provide information on such journal lines missing supporting references in the parameters tab of the report. You must:
  • Update supporting references for journal line rules identified as exceptions in the parameters tab of the report.

View Journal Line Rules Missing Supporting References in the Parameters Tab of the Report

• Updating supporting references won't fix account balances retrospectively.
  • Use the ready-to-use Subledger Accounting functionality to update correct balances against each of the supporting references for the latest period:  SUPPORTING REFERENCE BALANCE INITIALIZATION USING A SIMPLIFIED TEMPLATE

• All account balances are displayed only in the context of Cost Accounting subledger. When reconciling accounts, certain account balances may require reviewing balances across multiple subledgers or at the General Ledger level.
  • To get a complete picture of the balances and period activity, you must review the additional balances in Receipt Accounting subledger for the accounting line types listed here; these are appended with a double asterisk (**) in the report:
    • Clearing
    • Trade Clearing
    • Receiving Inspection
    • Interorganization Receivables
    • Consigned Clearing
    • Consigned Inspection
    • Consigned Receivables
    • Trade In-Transit Valuation
  • To get a complete picture of the balances and period activity, you must review the additional balances in other subledgers or at General Ledger level for the accounting line types listed here; these are appended with an asterisk (*) in the report:
    • Material Overhead Absorption: Contains only credits when overheads are absorbed into inventory or expense in Cost Accounting. The debits to book the expenses may be recorded in a different subledger or directly in the General Ledger.
    • Resource Absorption:  Contains only credits when overheads are absorbed into WIP inventory or expense in Cost Accounting. The debits to book the expenses may be recorded in a different subledger or directly in the General Ledger.
    • Offset
• When Summarization level is Period Activity, use the commit interval in days to optimize performance. Default value is 5 and a change from default should be done only on advise from Oracle to optimize performance of the report background process.

Key Resources

• Oracle Fusion Cloud SCM: Using Supply Chain Cost Management guide, available on the Oracle Help Center.
• Doc ID 3004563.1: How to map supporting references to custom journal line rules used in journal entry rule sets

Access Requirements

Users who are assigned a configured job role that contains these privileges can access this feature:

• View Cost Transaction Data (CST_VIEW_COST_TRANSACTION_DATA)

The privilege was available prior to this update.