Cost Accounting for Manual Procurement of Items for Work Orders

Oracle Cost Accounting provides costing and accounting features for items that are directly procured from a work order and are received against that work order and operation.

Costing of Manual Procurement of Items for Work Orders

Cost Accounting supports the Direct Delivery to Work Order transaction type for the costing of items delivered to Manufacturing.

The transaction processing depends on the cost method:

• Actual or Average cost method - The purchase price multiplied by the number of items received is added to the work in process valuation. This is also applicable for description-based and amount-based items.

• Standard cost method - The standard cost multiplied by the number of items received is added to the work in process valuation. The difference between the purchase price and the purchase order is accounted as a purchase price variance.

Accounting Distributions for Manual Procurement of Items for Work Orders

You can review the distributions created for the Direct Delivery to Work Order transactions in the Cost Accounting work area on the Review Cost Accounting Distributions page.

This table lists the accounting distributions for manufacturing work orders.

Accounting Line Type	Transaction Type
Work In Process Valuation	Debit
Receiving Inspection	Credit

This table lists the accounting distributions for maintenance work orders.

Accounting Line Type	Transaction Type
Expense	Debit
Receiving Inspection	Credit