Exclude Receipt Accounting for Noncosted Item Receipts Without Financial Orchestration

In certain industries, such as Telecommunications, Mobile, and Wireless Services, equipment like modems and routers provided to customers are typically treated as asset items. While these items are tracked as on-hand inventory across distribution networks, their costs are amortized through monthly rental charges and not directly accounted for in inventory costing.

With this enhancement, interorganization transfers involving both source and destination organizations marked as non-costed are now excluded from period-end cost exceptions. These transfers, used solely for inventory tracking, will no longer be marked as exceptions for missing costs during period close activities.

This update simplifies period-end reconciliation by eliminating noise from operational transfers that don't impact cost accounting, particularly benefiting high-volume service providers and network operators.

This enhancement excludes noncosted transfers from exception reports, reducing manual effort and improving cost accuracy.

Steps to Enable and Configure

Task 1: Create the CMR_EXCLUDE_COSTING_DISABLED_TOS Profile Option

  1. In the Setup and Maintenance work area, search for and select the Manage Profile Options task.
  2. On the Manage Profile Options page, click the New icon to create a new profile option.
  3. Set the parameters on the Create Profile Option page.  
    • Profile Option Code: CMR_EXCLUDE_COSTING_DISABLED_TOS
    • Profile Display Name: CMR_EXCLUDE_COSTING_DISABLED_TOS
    • Application: Receipt Accounting
    • Module: Receipt Accounting
    • Description: Exclude Receipt Accounting for Noncosted Item Receipts Without Financial Orchestration
    • SQL Validation: Select MEANING, LOOKUP_CODE from FND_LOOKUPS where LOOKUP_TYPE='YES_NO'
    • Start Date: Date when you want this profile to start
  4. Click Save and Close.
    In the Profile Option Levels section, enable the level as needed, preferably at the site level. Ensure both Enabled and Updatable check boxes are selected.

Task 2: Enable the CMR_EXCLUDE_COSTING_DISABLED_TOS Profile Option

  1. In the Setup and Maintenance work area, access the Manage Receipt Accounting Profile Options task.
  2. On the Manage Receipt Accounting Profile Options page, search for and select the CMR_EXCLUDE_COSTING_DISABLED_TOS profile option code.
  3. In the Profile Values section, set the Site level to Yes.
    • Yes = Excludes interorganization receipts from period-end exceptions for items with costing disabled.
    • No = Reports interorganization receipts in period-end exceptions for missing transfer cost.
  4. Click Save and Close. Change in the profile value will take effect the next time you sign in.

Tips And Considerations

  • When you enable the profile option to exclude, you can review the count of interorganization transfer receipts in the receipt accounting distributions processor logs.
  • If the item is later enabled for costing, subsequent rerun of the costing and receipt accounting processors will process and account the item cost.
  • Only transfers for items with costing disabled without financial orchestration are excluded.

Key Resources

  • Oracle Fusion Cloud SCM: Using Supply Chain 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:

  • Submit Receipt Accounting (CMR_SUBMIT_RECEIPT_ACCOUNTING)
  • Create Receipt Accounting Distributions (CMR_CREATE_RECEIPT_ACCOUNTING_DISTRIBUTIONS)
  • Review Receipt Accounting Distributions (CMR_REVIEW_RECEIPT_ACCOUNTING_DISTRIBUTIONS)
  • Review Receipt Accounting Distributions by Web Service (CMR_REVIEW_RECEIPT_ACCOUNTING_DISTRIBUTIONS_WEB_SERVICE)

These privileges were available prior to this update.