1. Implementing Manufacturing and Supply Chain Materials Management
  2. Exclude Receipt Accounting for Noncosted Item Receipts Without Financial Orchestration

Exclude Receipt Accounting for Noncosted Item Receipts Without Financial Orchestration

Interorganization transfers involving both source and destination organizations marked as noncosted can be excluded from period-end cost exceptions. These transfers, used solely for inventory tracking, won't be marked as exceptions for missing costs during period close activities.

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.

By excluding receipt accounting for noncosted item receipts without financial orchestration, period-end reconciliation is simplified and eliminates noise from operational transfers that don't impact cost accounting, particularly benefiting high-volume service providers and network operators.

  1. In the Setup and Maintenance work area, search for and select 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. The default value is No.

    • Yes = Exclude interorganization receipts from period-end exceptions for items with costing disabled.

    • No = Report 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.

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