Example of Accounting of Direct Transfer Order to Inventory Destination
This example illustrates:
-
Material moment transactions that are captured in Oracle Inventory Management and interfaced to Oracle Receipt Accounting and Oracle Cost Accounting.
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Accounting entries that Receipt Accounting and Cost Accounting generate for a direct transfer order from inventory to an inventory destination.
Scenario
Let's consider a direct transfer order from an inventory to an inventory destination within an organization. The quantity of goods transferred is 10 units and the cost per unit is $12.00.
Accounting Events
For this direct transfer to inventory destination, the corresponding events along with the transaction creating system and subledger are summarized in this table.
|
Event |
Transaction Creating System |
Subledger |
|---|---|---|
|
Miscellaneous Receipt |
Inventory |
Cost Accounting |
|
Transfer Order IntraOrg Transfer |
Inventory |
Cost Accounting |
Analysis
Receipt Accounting and Cost Accounting create accounting entries for the transfer of goods.
Accounting Entries
This table describes the receipt and cost accounting entries for the direct transfer order to inventory destination.
|
Subledger |
Event |
Inventory Org/VU |
Accounting Line |
Cost Element |
Amount in USD (+Dr/-Cr) |
Basis of Amount |
|---|---|---|---|---|---|---|
|
Cost Accounting |
Miscellaneous Receipt |
Subinventory 1 |
Inventory |
Material |
+ 120.00 |
Transaction Cost |
|
Cost Accounting |
Miscellaneous Receipt |
Subinventory 1 |
Offset |
Material |
- 120.00 |
Transaction Cost |
|
Cost Accounting |
Transfer Order IntraOrg Transfer |
Subinventory 1 |
Offset |
Material |
+ 120.00 |
Current Item Cost |
|
Cost Accounting |
Transfer Order IntraOrg Transfer |
Subinventory 1 |
Inventory |
Material |
- 120.00 |
Current Item Cost |
|
Cost Accounting |
Transfer Order IntraOrg Transfer |
Subinventory 2 |
Inventory |
+ 120.00 |
Transfer Price |
|
|
Cost Accounting |
Transfer Order IntraOrg Transfer |
Subinventory 2 |
Offset |
- 120.00 |
Transfer Price |