Account for Return of Budget-Controlled Transfer Orders from Expense Destination and Selected Inventory Destination Receipts

In many industries, validating transactions against established budgets and the existing budget consumption to prevent overspending is critical to the company's financial health. If you're using these validations, it can be just as important to enact budget control checks for internal material transfers, or transfer orders, across organizations as it's for purchases from suppliers. Prior to this update, if you used budget control for internal material transfers to expense destinations or a subinventory that's not tracking on-hand quantity, you weren't able to cost or process the return for these receipts in the source organization. Now, you have the ability to correctly budget check, cost, and account the receipt returns for expense destination transfer orders or inventory destination transfer orders that are put away into a subinventory that’s not tracking on-hand quantity and under budget control.

A department may use a budget and consume from the same when it receives the material. When excess or unused material is returned to the stockroom, budget balances should be recovered increasing the funds available for the returning department. So when processing the return event in Receipt Accounting, a reversal distribution for the actual expense will be booked and a fresh commitment won't be generated.

Picture1: Image of distributions generated in Receipt Accounting to reverse the expense booked earlier on processing Transfer order Expense return event.

Image of distributions generated in Receipt Accounting to reverse the expense booked earlier on processing Transfer order Expense return event.

Picture 2: Image of funds reservation passed and commitment amount booked as zero when processing Transfer order Expense return event.

Image of funds reservation passed and commitment amount booked as zero when processing Transfer order Expense return event.

This feature enables businesses to recover budget balances when unused materials are returned to stock, ensuring accurate budget utilization and increasing available funds for departments. It promotes efficient resource management and helps departments optimize their budgets by aligning with actual material consumption.

Steps to Enable

You don't need to do anything to enable this feature.

Key Resources

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

Access Requirements

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

  • Manage Receiving Receipt Returns (RCV_MANAGE_RECEIVING_RECEIPT_RETURNS)
  • Create Receiving Receipt by Web Service (RCV_CREATE_RECEIVING_RECEIPT_WEB_SERVICE)
  • Manage Shipments and Shipment Lines (WSH_MANAGE_SHIPMENT_AND_SHIPMENT_LINE)
  • Manage Inventory Transfer Order (INV_MANAGE_INVENTORY_TRANSFER_ORDER)
  • Review Receipt Accounting Distributions (CMR_REVIEW_RECEIPT_ACCOUNTING_DISTRIBUTIONS_PRIV)
  • Review Receipt Accounting Distributions by Web Service (CMR_REVIEW_RECEIPT_ACCOUNTING_DISTRIBUTIONS_WEB_SERVICE)
  • Review Cost Distribution (CST_REVIEW_COST_DISTRIBUTIONS)
  • Review Cost Distribution by Web Service (CST_REVIEW_COST_DISTRIBUTIONS_WEB_SERVICE_PRIV)
  • View Supply Chain Financial Orchestration Flow (FOS_VIEW_SUPPLY_CHAIN_FINANCIAL_TRADE_AGREEMENT)

These privileges were available prior to this update.