Account for Return of Project-Based Transfer Orders from Expense Destination and Selected Inventory Destination Receipts

For project heavy industries, tracking on-hand quantities by project and task is critical for efficient project completion within the established timeline and budget. When tracking your on-hand quantities by project and task, it's common to use an internal material transfer, or transfer order, to an expense destination or an inventory destination to a subinventory that isn't tracking on-hand quantity when you're physically issuing material to a project site. Prior to this update, you couldn't return those types of transfers if the transfer order was project-striped.  As a cost accountant, you can now cost and properly account transfer order returns of project-based goods from non-quantity tracked sub-inventories and expense destinations back to the stockroom, ensuring correct project-specific inventory valuation.

Given below is an illustration of different business scenarios and transaction types where the costs are sent to project in case of transfer scenarios.

Project enabled in both sending and receiving organization	Shipping from	Receiving into	Costs sent to Projects
Yes	Project Striped Inventory	Project Striped Inventory	As a Negative Charge in Shipping Organization As a Positive Charge in Receiving Organization
Yes	Common Inventory	Project Striped Inventory	As a Positive Charge in Receiving Organization
Yes	Common Inventory	Common Inventory	No costs will be send to projects as the inventory isn't striped by project
Yes	Project Striped Inventory	Project Expense Destination	As a Negative Charge in Shipping Organization As a Positive Charge in Receiving Organization
Yes	Common Inventory	Project Expense Destination	As a Positive Charge in Receiving Organization

For Project Striped Inventory issue or receipt = Inventory project details will be available on transaction

For Common Inventory issue or receipt event = Inventory project details won't available on transaction

Business Flow	Flow	Applicable Transaction Type	Subledger
Intraorganization Transfers In-transit Shipment Inventory Destination  Nonquantity tracked subinventories	Forward	Transfer Order Intraorganization Shipment	Cost Accounting
	Forward	Transfer Order Intraorganization Receipt	Cost Accounting
	Return	Transfer Order Return Intraorganization Shipment	Cost Accounting
	Return	Transfer Order Return Intraorganization Receipt	Cost Accounting
Intraorganization  Expense Destination Transfers with Receipt	Forward	Transfer Order Issue	Cost Accounting
	Forward	Transfer Order Delivery to Expense	Receipt Accounting
	Return	Transfer Order Expense Return to Receiving	Receipt Accounting
	Return	Transfer Order Return Intraorganization Receipt from Expense	Cost Accounting
Interorganization  In-transit Shipment Inventory Destination  Nonquantity tracked subinventories	Forward	Transfer Order Interorganization Shipment	Cost Accounting
	Forward	Transfer Order Interorganization Receipt	Cost Accounting
	Return	Transfer Order Return Interorganization Shipment	Cost Accounting
	Return	Transfer Order Return Interorganization Receipt	Cost Accounting
Interorganization  Direct Transfers Inventory Destination  Nonquantity tracked subinventories	Forward	Transfer Order Interorganization Transfer	Cost Accounting
	Return	Transfer Order Return Transfer	Cost Accounting
Interorganization  Expense Destination Transfers with Receipt	Forward	Transfer Order Issue	Cost Accounting
	Forward	Transfer Order Delivery to Expense	Receipt Accounting
	Return	Transfer Order Expense Return to Receiving	Receipt Accounting
	Return	Transfer Order Return Receipt from Expense	Cost Accounting

 With this enhancement, cost accountants will be able to manage and track material returns on project-based transfer orders ensuring accurate project-specific inventory valuation and expenditure.

Steps to Enable

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

Tips And Considerations

• Direct intraorganization transfers will remain excluded for sending costs to project because the transaction costs gets nullified in the same period and in the same expenditure organization.

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.