Contents

• Title and Copyright Information
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1 Introduction

• Overview of Cost Management
• Supported Cost Methods
• Time Zones and Dates
  • Time Zone Settings
  • Impact of Legal Entity Time Zone on Accounting Dates
  • Example of How Transactions are Costed in the Legal Entity Time Zone
  • Date Display in Cost and Receipt Accounting UI
• Overview of Importing Cost Data
• Web Services You Can Use to Integrate Cost Management

2 Receipt Accounting

• Overview of Receipt Accounting
• Receipt Accounting Infolets
• Considerations for Accrual Settings
• Receipt Accounting Tasks and Accounting Events
• Receipt Accrual, Reconciliation, and Clearing
• Receipt Accrual Clearing Rules
• Receipt Accounting Cutoff Dates
• Overview of Accrual Reversal
• Review Receipt Accounting Distributions
• Review Receipt Accounting Exceptions
• Period End Uninvoiced Receipt Accrual
  • Receipt Accounting for Purchase Orders Set to Accrue at Period End
  • Create Uninvoiced Receipt Accrual
  • Run Uninvoiced Receipt Accruals Report
  • Create Accounting
  • FAQs for Period End Uninvoiced Receipt Accrual
    • What accounting date is used for the accrual journal?
    • What accounting date is used for creating the accrual reversal journal?
    • Why do the distributions created by the Create Uninvoiced Receipt Accruals process differ from the entries in the Uninvoiced Receipt Accruals Report?
    • Can I use General Ledger reversal functionality for period end accruals created from Receipt Accounting?
    • Do I need to manually create reversals in General Ledger for the period end accruals created from Receipt Accounting?
    • How do I ensure that all the processes required for period end uninvoiced receipt accrual are run and in the correct order?
    • Why is the uninvoiced receipt accrual reversal journal in the Invalid status?
    • Before closing the General Ledger period are any additional actions required for uninvoiced receipt accrual?
    • Does Receipt Accounting create encumbrance accounting for period end uninvoiced receipt accruals?
    • Are period end uninvoiced receipt accruals budgetary controlled?
• How You Close a Receipt Accounting Period
• Cost Management for Internal Material Transfers
• Budgetary Control and Encumbrance Accounting
• Receipt Accounting for Outside Processing
• Receipt Accounting for Manual Procurement of Items for Work Orders
• Receipt Accounting for Drop Shipments
• Tax Accounting for Receipt Transactions
• Global Procurement
  • Overview of Global Procurement Trade Accounting
  • Profit Center Business Units and Bill-to Business Units
  • Review Item Cost and Global Procurement Trade Transaction Accounting
• Receipt Accounting Examples
  • Example of Consigned Inventory Accounting in a Simple Purchase Order
  • Example of Consigned Inventory Accounting of an Interorganization Transfer Across Business Units
  • Example of Consigned Inventory Accounting of an Interorganization Transfer Within the Same Business Unit
  • Example of Consigned Inventory Accounting in a Global Purchase Order
  • Example of Accounting of Global Procurement Trade Transactions into Inventory
  • Example of Accounting of Interorganization Transfers Across Business Units
  • Example of Accounting of Trade Transactions in Internal Drop Shipments
  • Example of Accounting of Global Procurement Trade Transactions into Expense
  • Example of Accounting of Interorganization Transfers Within the Same Business Unit
  • Example of Tax Accounting for a Simple Procurement Transaction
  • Example of Tax Accounting for a Consigned Inventory Transaction
  • Example of Tax Accounting for a Purchase Order Retroactive Price Change
  • Example of Tax Accounting for Interorganization Transfers Across Business Units
  • Example of Tax Accounting for Internal Drop Shipments
• Reports and Analytics for Receipt Accounting
• FAQ for Receipt Accounting Reports
  • Why is the Accrual Reconciliation Report not populated with any data?
  • Why aren't some of the purchase orders not appearing in the Accrual Reconciliation Report?
  • Does the Accrual Reconciliation Report provide all the accrual information?
  • Can I use the Receipt Accounting Real Time subject area for accrue at receipt and accrue at period end purchases?
• FAQs for Receipt Accounting
  • What is the recommended sequence for scheduling of receipt accounting processes?
  • What are the accounting distribution basis options for consigned inventory transactions?
  • How do I set up accounts for different receipt accounting events?
  • Why do I see a receipt inspection balance for the purchase orders?
  • What's a tax point basis?
  • What's a tax point date?
  • When are nonrecoverable taxes calculated on Intercompany transactions?
  • What's the difference between inclusive basis and exclusive basis in tax calculations?
  • How can I create subledger account rules and subledger journal entry rule sets for receipt accounting?
  • Is the currency conversion rate on receipt required for foreign currency purchases that are matched to receipt?
  • Is there a separate transfer price for the transfer in secondary ledger?

3 Cost Planning

• Cost Planning Process
• Supply Chain Cost Rollup
  • Supply Chain Cost Rollup
  • Manage Cost Rollup Groups
  • Manage Transfer Charge Rules and Rule Sets
  • Make Sourcing Variance
• Cost Scenario
  • Cost Rollup Scope
  • Use Latest Work Definitions for Cost Rollup
  • Effective Date
  • Create a Cost Scenario for Regular Items
  • Create a Cost Scenario for Configured Items
  • Create a Cost Scenario for Supply Chain Cost Rollup
  • State and Status of Cost Scenario
  • Cost Scenario for Periodic Average Cost Enabled Cost Book
• Standard Costs
  • Estimating Standard Costs
  • Create Standard Costs
  • Manage Standard Costs in a Spreadsheet
  • Import Standard Costs Using File-Based Data Import
• Resource Rates
  • Managing Resource Rates
  • Create Resource Rates
  • Manage Resource Rates in a Spreadsheet
• Overhead Rates
  • Managing Overhead Rates
  • Overhead Absorption Type
  • Create Overhead Rates
  • Manage Overhead Rates in a Spreadsheet
• Cost Rollup
  • Roll Up Costs
  • Cost Rollup for Process Manufacturing
  • Cost Rollup for Configured Items
  • Co-Products and By-Products in Discrete Manufacturing
  • Operation Yield for Estimating Losses during Work Order Execution
  • Cost Rollup Examples
    • Example of Cost Rollup
    • Example of Cost Rollup with Different Overhead Absorption Types
    • Example of Single Level Cost Rollup
    • Example of Supply Chain Cost Rollup for Discrete Manufacturing
    • Example of Supply Chain Cost Rollup for Process Manufacturing
• Cost Analysis
• Publish Costs
• FAQs for Cost Planning
  • Does a standard cost include overhead costs?
  • Why is the valuation unit not listed on the Create Standard Cost page?
  • Why are the costs for my make items not getting rolled up?
  • Why are standard costs not being created for my make items, after the costs are rolled up?
  • Can I roll up costs for a make item with work definition of type Rework?
  • How do I set up a standard cost that's effective from a past date?
  • What does the status of a standard cost signify?
  • Why am I getting standard cost exists error although the FBDI upload is successful?
  • Why is the valuation unit invalid message shown when uploading standard costs?
  • How do I view the cost adjustments resulting from a standard cost update?
  • Can I update, deactivate, or delete a standard cost?
  • Can I delete a cost scenario?
  • Why are the rolled up costs for some of the older cost scenarios not getting displayed in the View Rolled-up Costs page?
  • Why is the Roll up Costs process not including the resource cost while rolling up the cost of the item

4 Cost Accounting

• Overview of Cost Accounting
• Cost Accounting Infolets
• Scheduled Processes for Cost Accounting
• Cost Accounting Process
  • Cost Accounting Process Flow
  • Create Cost Accounting Distributions
  • Track Processing Progress and Review Results
  • Review Cost Accounting Distributions
• Cost Accounting Periods
  • Cost Accounting Periods
  • Cost Cutoff Dates
  • Cost Accounting Period Validations
  • Cost Accounting Period Statuses and Transaction Accounting
• Cost Processing
  • Actual Cost Method
  • Standard Cost Method
  • Standard Cost Definition Process
  • Periodic Average Cost Method
  • Periodic Average Costing Process
  • Review Item Costs
  • Cost Adjustments and Cost Distributions
  • Receipt Cost Adjustment and Propagation
  • Cost Accounting for Purchase Orders
    • Purchase Order Receipts
    • Acquisition Cost Adjustment
    • Variance Absorption
    • Acquisition Cost with Enhanced Cost Processing
    • Example of Acquisition Cost Adjustment With Match Option Set to Order
    • Example of Acquisition Cost Adjustment With Match Option Set to Receipt
    • Ignore Invoice Variances for Inventory Destination Purchase Orders
  • Periodic Average Cost Adjustments
    • Periodic Average Cost Adjustments
    • Periodic Average Cost Adjustment Status
    • Create a Value Adjustment
    • Create an Opening Cost Override
  • Costing Subinventory Material Staged for Production
  • Cost Accounting for Outside Processing
  • Cost Accounting for Manual Procurement of Items for Work Orders
  • Cost Accounting for Rework and Transformation Work Orders
  • Cost Accounting for Manufacturing Work Orders
  • Review Work Order Costs
  • Review Maintenance Work Order Costs
  • Purchase Order Return and Sales Return Flows
  • Cost Accounting for Drop Shipments
  • Cost Management for Inclusive Taxes
• Internal Material Transfers
  • Cost Management for Internal Material Transfers
  • Budgetary Control and Encumbrance Accounting
  • Example of Accounting of Interorganization Transfers
  • Example of Accounting of Interorganization Transfers with Cost Propagation
  • Example of Accounting of Intraorganization Transfers with Cost Propagation
  • Example of Accounting of Direct Transfer Order to Inventory Destination
  • Example of Accounting of In Transit Transfer Order Shipment with Cost Propagation
• Lot Transactions
  • Cost Accounting for Lot Transactions
  • Example of Accounting of Lot Split Transactions
  • Example of Accounting of Lot Merge Transactions
  • Example of Accounting of Lot Translate Transactions
• Cost of Goods Sold and Gross Margin
  • Sales Order Issue
  • Cost of Goods Sold Recognition
  • Oracle Fusion Cloud Revenue Management Integration
  • Sales Returns
  • Adjustment Propagation
  • Example of Cost of Goods Sold Recognition
  • Example of Return Material Authorization Recognition for Sales Returns
  • FAQ for Cost of Goods Sold and Gross Margin
    • Why is the COGS recognition accounting entry missing or not created for sales order issue or RMA receipt?
• Global Procurement
  • Overview of Global Procurement Trade Accounting
  • Profit Center Business Units and Bill-to Business Units
  • Example of Accounting of Global Procurement Trade Transactions into Inventory
  • Example of Accounting of Global Procurement Trade Transactions into Expense
  • Review Item Cost and Global Procurement Trade Transaction Accounting
• Cost Accounting Examples
  • Example of Using the Actual Cost Method
  • Examples of Making Cost Adjustments
  • Example of Receipt Cost Adjustment
  • Example of Acquisition Cost Adjustment for Partial Receipts
  • Example of Acquisition Cost Adjustment with Accrual Clearing
  • Example of Procurement Flow using Dual Units of Measure with Partial Receipt and no Invoice
  • Example of Procurement Flow using Dual Units of Measure with Multiple Put Away and no Invoice
  • Example of Procurement Flow using Dual Units of Measure with Partial Invoice
  • Examples of Backdating of Transactions
  • Example of Overhead Absorption for Miscellaneous Receipt or Subinventory Transfer (Receipt)
  • Example of Overhead Absorption for Interorganization Transfer Receipt
  • Example of Overhead Absorption for Interorganization Transfer Return
  • Example of Overhead Absorption for Purchase Order Receipt
  • Example of Overhead Absorption for Purchase Order Return
  • Example of Overhead Absorption for Drop Ship Delivery in Receiving Business Unit
  • Example of Overhead Absorption for Trade in Transit Receipt in Supplier Facing Business Unit for Global Procurement
  • Example of Accounting of Trade Transactions in Internal Drop Shipments
  • Example of Consigned Inventory Accounting in a Simple Purchase Order
  • Example of Consigned Inventory Accounting in a Global Purchase Order
  • Example of Consigned Inventory Accounting of an Interorganization Transfer Across Business Units
  • Example of Consigned Inventory Accounting of an Interorganization Transfer Within the Same Business Unit
  • Tax Accounting for Receipt Transactions
  • Example of Tax Accounting for a Simple Procurement Transaction
  • Example of Tax Accounting for a Consigned Inventory Transaction
  • Example of Tax Accounting for a Purchase Order Retroactive Price Change
• Cost Management for Project Driven Supply Chain
  • Overview of Project-Driven Supply Chain Management
  • Project Costs in Supply Chain Flows
  • Oracle Project Portfolio Management Cloud Integration
  • Capture Expenditure Information in Project Costing for Sales Order Shipments
  • Capture Expenditure Information in Project Costing for Sales Returns
  • Capture Expenditure Information in Project Costing for Work Order Transactions
  • Capture Expenditure Information in Project Costing for Interorganization Transactions
  • Capture Expenditure Information in Project Costing for Miscellaneous Inventory Transactions
  • Execute Project-Striped Supply Chain Without Project Financials
• Reports and Analytics for Cost Accounting
• FAQs for Cost Accounting Reports
  • Why do I see negative amounts in the Period In-transit Valuation Report?
  • Why do I see a difference in the costed and accounted amount in the Period In-transit Valuation Report when all other parameters are same?
  • Why do I see a difference in the Period In-transit Valuation Report and the in-transit account?
  • Why are the quantities in the Inventory Valuation Reports different from that in the inventory?
  • Why is an item missing from the Inventory Valuation Report?
  • Why do adjustments not attribute to a specific subinventory but instead show as * when viewing by subinventory for reporting purposes?
  • How is the quantity remaining computed for each receipt layer?
• Review Inventory Valuation
  • Analyze Inventory Valuation
  • Reconciling Inventory Value in Costing Subledger with General Ledger
• FAQs for Cost Accounting
  • When should I run the Period End Validation report for Cost Accounting?
  • What happens if an item in a cost organization book has both a perpetual average item cost adjustment and a receipt cost adjustment pending?
  • What happens if the cost processors are running transactions for several cost organization books involving interorganization transfers?
  • Why a standard cost doesn’t exist error shown even if item cost is published without errors?
  • Why is the cost processor logging a standard cost missing error?
  • How can I post cost distributions and journal entries to the general ledger?
  • What happens during cost processing when an inventory organization is missing setup information?
  • How can I diagnose problems with item cost data that is missing or incorrect?
  • Why is the Unit Cost of the item disproportionate to the Transaction Quantity or Amount for the Miscellaneous Receipt transaction?
  • What are the accounting distribution basis options for consigned inventory transactions?
  • Can I revise a cost adjustment?
  • Why is the acquisition cost adjustment hitting write-off after the receipt cost adjustment?
  • How do I clear the Work in Process balances after all the product completions?
  • How do standard cost updates impact open work orders?
  • Why is the work order close transaction not costed?
  • How can I clear the Work in Process balance for a cancelled work order?
  • What should I do if cost records aren’t processed due to missing inventory transactions?
  • What should I do if transactions aren’t costed because perpetual average cost is unavailable?
  • Why are the journal entries for Trade Receipt Accrual missing?
  • Why does the Trade Clearing Account have a residual balance for my return transactions?
  • What's a tax point basis?
  • What's the difference between inclusive basis and exclusive basis in tax calculations?
  • Is the accounting date of a transaction always the same as the costing date?
  • Why are transfer orders within an inventory organization not reflecting in Cost Accounting
  • What cost method can I use for drop ship sales orders?
  • Why is the cost of goods sold recognition transaction for a given sales order not costed?
  • Why is the RMA transaction not listed on the Review Cost Accounting Distributions page?
  • How does cost accounting handle the input costs for a maintenance work order?
  • How are the periods in General Ledger synchronized to Cost Accounting?
  • Why can't I open the cost period?
  • Why do I see the Completed work orders not closed error on period close validation
  • What should I do if the scheduled process is in the Running status?
  • What should I do if the scheduled process is in the Blocked status?
  • What should I do if the scheduled process is in the Canceling status?

5 Landed Cost Management

• Overview of Landed Cost Management
• Landed Cost Management Tasks
• Trade Operations
• Landed Cost Charge Lines
• Trade Operation Statuses
• Trade Operation Templates
• Create Estimate Landed Costs
• How You Enable an Invoice for Landed Cost Processing
• Create Actual Landed Costs
• Charge Invoice Association Status
• Upload Trade Operation Charges in a Spreadsheet
• Analyze Landed Costs
• FAQs for Landed Cost Management
  • What are landed costs?
  • What's a landed cost charge?
  • What's a trade operation?
  • What's a landed cost reference type?
  • Can I create a trade operation with multiple charge amounts in multiple currencies?
  • What are the criteria to enable a charge invoice for the Associate Charge Invoice task?
  • Why can’t I delete the trade operation when the associated PO schedule is deleted?

6 Appendix: Events and Cost Accounting Distributions

• Overview of Cost Accounting Distributions
• Inventory Transaction Events
  • Miscellaneous Transaction Events
  • Intraorganization Transfer Events
  • Direct Organization Transfer Events
  • Interorganization Transfer Events
  • Subinventory Transfer Order Events
  • Direct Organization Transfer Order Events
  • Interorganization Transfer Order Events
  • Internal Drop Ship Transfer Events
• Purchasing Events
  • Receipt, Return, and Adjustment Events
  • Global Procurement Events
  • Outside Processing Events
• Sales Events
• Work in Process Events
  • Work in Process Events
  • Maintenance Work Order Events
  • Rework or Transform Work Order Events
• Cost Adjustment Events
• Consigned Material Events
  • Purchasing Events
  • Cycle Count Events
  • Direct Organization Transfer Events
  • Interorganization Transfer Events
  • Direct Organization Transfer Order Events
  • Interorganization Transfer Events
  • Global Procurement Events