1. Using Supply Chain Cost Management
  2. Receipt Accounting Parameters

Receipt Accounting Parameters

Before you start using the receipt accounting periods, you must first set up the receipt accounting parameters. On the Receipt Accounting Parameters page, you can see all your bill-to business units and ledgers, and start period control for these combinations.

You can either configure period controls for one bill-to business unit or apply the same configuration to multiple bill-to business units at once, for example, all bill-to business units in a ledger. This is especially useful for large enterprises that have huge number bill-to business units because it reduces manual work, improves consistency, and lowers cutover risk.

You must define these parameters:

  • First open period: Any transactions that are in or precede the first opened period are accounted in the first opened period.

  • Maximum open periods: Specifies the maximum number of concurrent periods that can be open. If the number of periods is maximized, then no additional period can be opened until one of the open periods changes to the Closed, Permanently Closed, or Pending Close status.

  • Cutoff date: When the cutoff date option is automatic, the cutoff date is derived as the last day of the earliest open receipt accounting period after the last closed period during the Create Receipt Accounting Distributions process. You can optionally configure the cutoff date manually.

Note:

After you configure the receipt accounting parameters and start using the receipt accounting periods, existing bill-to business units using Receipt Accounting will use the first open period that you set to cut over to the receipt accounting periods.

  • Transactions that occurred before the defined first opened period will be accounted using the general ledger period.

  • The first open period must be later than the latest accounted receipt accounting distribution date for the selected bill-to business units.

  • Ensure a clean transition to the first open receipt accounting period by avoiding pending transactions for an open period at the time of cutover to the new period.

  • If you've defined accrual offset days, this new cutoff date in Receipt Accounting Parameters will be considered for transaction processing from the first open period instead of the accrual offset days.