Redwood: Analyze Gross Margin

You can now review gross margins and cost of goods sold (COGS) information for sales orders and intercompany documents using the new Redwood page Gross Margin Analysis. You can use this page to analyze gross margins for sales to external customers, internal customers, and identify sales orders with deferred COGS balances.

With this new page, you can:

• View gross margin and COGS information for all business units that you've access to.
• View summarized gross margin information and view details by customer or items. You can also drill down into the individual sales order shipments to understand the gross margin and COGS recognition.
• Personalize your view by using the Customize Columns feature.
• Search for gross margin and COGS information with additional filters to add more context to your search results.

The Gross Margin Analysis page lists the recognized revenue and recognized COGS for a combination of business unit, cost organization, inventory organization, and a date range.

Gross margin summary page

You can review the gross margin information by items or by customers to identify the items with highest or lowest gross margins.

Analyze margins by customers or by items

Use the Intercompany Gross Margins page to review gross margins for intercompany transactions such as Interorganization transfers, internal drop shipments, and customer drop shipments.

Inter-company gross margin analysis

Click the shipment number to review transaction data.

Shipment details

The Cost of Goods Sold page helps you to identify sales order shipments that have deferred COGS balances to identify the exceptions easily.

Identify sales order shipments with deferred COGS balances easily

Click the shipment number to review the details of the shipment, such as sales order details and revenue recognition details.

Shipment and revenue details

The new Redwood functionality offers significant advantages : 

• Keyword search and filters enable faster, more accurate navigation.
• Easily identify sales order shipments with missing revenue recognition information to ensure that revenue and COGS are recognized in the appropriate periods.
• Track the gross margin information for internal and external sales orders separately.

Steps to Enable

1. In the Setup and Maintenance work area, search for and select the Manage Administrator Profile Values task.
2. On the Manage Administrator Profile Values page, search for and select the ORA_CST_ANALYZE_PRODUCT_GROSS_MARGINS_REDWOOD_ENABLED profile option code.
3. In the Profile Values section, set the Site level to Yes. The default value is No. 

• Yes = enables the feature
• No = disables the feature 

4. Click Save and Close. Changes in the profile value will affect users the next time they sign in.

After you've set the profile value correctly, the task pane under Cost Accounting would show the task menu link as Gross Margin Analysis. Using this link, you can access the Redwood page.

Tips And Considerations

• COGS information is currently restricted to the last 365 days due to performance considerations. The information required for this page will be upgraded in batches as part of the Create Cost Accounting Distributions process and might need multiple runs of the cost processor to upgrade all the eligible historical records.
• This page helps you to analyze gross margin and COGS information only for the primary cost book currently.

Key Resources

• Oracle Fusion Cloud SCM: Implementing Manufacturing and Supply Chain Materials Management Guide, available on the Oracle Help Center.
• Oracle Fusion Cloud SCM: Using Cost Management Guide, available on the Oracle Help Center.

Access Requirements

Users who are assigned a configured job role that contains the following privilege can access this feature:

• Analyze Product Gross Margins (CST_ANALYZE_PRODUCT_GROSS_MARGINS_PRIV)
• Analyze Cost of Goods Sold and Gross Margins Using REST Service (CST_ANALYZE_PRODUCT_GROSS_MARGINS_WEB_SERVICE_PRIV)