Apply Project Identifiers and Asset Categories from Physical Organizations in Drop Shipment Flows

You can now capitalize project costs using the asset category attribute defined in the Purchasing item organization for an item. You can do this across multiorganization project costing flows, such as customer drop shipment and internal drop shipment, without assigning the item to every logical inventory organization in the flow. The enhancement supports complex, multinode variants of customer drop shipment, internal drop shipment, and trade-sale scenarios where there are no physical inventory transactions in the financial or trade organization, whether the asset category attribute is defined as master controlled or inventory organization controlled.

For the business, this delivers policy-driven capitalization that aligns with IFRS/US GAAP, ensures accurate asset class mapping from the first cost capture, and automates end-to-end flows by removing unnecessary item-organization dependencies. It strengthens controls and auditability with a single, deterministic derivation source, supports granular componentization for large programs, for example data centers and network builds, and scales globally without duplicating master data across many organizations. 

By getting the right asset category at import, the application:

  • reduces exceptions.
  • accelerates period close.
  • improves tax and statutory outcomes through consistent category-to-book mappings.
  • enhances forecasting, benchmarking, and ROI analysis with reliable, consistent asset classification.

This enhancement modernizes capital project cost derivation for multiorganization flows by leveraging the asset category attribute defined in the Purchasing item organization, minimizing item-organization dependencies, and ensuring reliable capitalization across simple and complex customer drop shipment, internal drop shipment, and trade-sale scenarios. 

Steps to Enable and Configure

Task 1: Create the CST_PJC_ASSET_CATEGORY 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: CST_PJC_ASSET_CATEGORY
    • Profile Display Name: CST_PJC_ASSET_CATEGORY
    • Application: Cost Management
    • Module: Cost Management
    • Description: Use the project identifiers and the asset category defined for item from the physical inventory organization when transferring project costs from logical organizations in drop-shipment flows.
    • 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 the Enabled and Updatable checkboxes are selected.

Task 2: Enable the CST_PJC_ASSET_CATEGORY Profile Option

  1. In the Setup and Maintenance work area, access the Manage Cost Accounting Profile Options task.
  2. On the Manage Receipt Accounting Profile Options page, search for and select the CST_PJC_ASSET_CATEGORY profile option code.
  3. In the Profile Values section, set the Site level to Yes.
    • Yes = Uses the new logic to derive the purchasing asset category for sending to projects.
  4. Click Save and Close. Change in the profile value will take effect the next time you sign in.

Tips And Considerations

The asset category attribute defined in the Purchasing item organization for an item can be either master controlled or inventory organization controlled and following is the logic for derivation:

  • If the item is assigned to the logical trade organization, the respective value assigned will be used.
  • If the item isn't assigned to the logical trade organization, the value will be derived from the project expenditure organization on the transaction.
  • If the item isn't assigned to the logical trade organization or the project expenditure organization, the value is derived from the purchasing attribute in the shipping or receiving organization used in the drop shipment flow.
  • To derive from the item validation organization of the cost organization, create and enable the CST_PJC_MASTER_ORG_ASSET_CATEGORY profile option similar to the CST_PJC_ASSET_CATEGORY profile option. 

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 Supply Chain Cost 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:

  • Create Cost Distributions (CST_CREATE_COST_DISTRIBUTIONS)
  • Create Cost Distributions by Web Service (CST_CREATE_COST_DISTRIBUTIONS_WEB_SERVICE)
  • Submit Cost Accounting (CST_SUBMIT_COST_ACCOUNTING)
  • Run Import and Process Project Cost Transactions Process (PJC_RUN_IMPORT_AND_PROCESS_PROJECT_COST_TRANSACTIONS_PROCESS)