1. Implementing Manufacturing and Supply Chain Materials Management
  2. Apply Project Identifiers and Asset Categories from Physical Organizations in Drop Shipment Flows

Apply Project Identifiers and Asset Categories from Physical Organizations in Drop Shipment Flows

You can capitalize the project costs by using the asset category attribute defined in the Purchasing item organization of an item for across multiorganization project costing flows, such as customer drop shipment and internal drop shipment, without assigning the item to every logical inventory organization in the flow.

You can do this for simple as well as complex, multinode variants of customer drop shipment, internal drop shipment, and trade-sale scenarios where there are no physical inventory transactions in the financial or trade organization.

This delivers policy-driven capitalization that aligns with IFRS/US GAAP, ensures accurate asset class mapping from the first cost capture, and automates end-to-end flows by removing unnecessary item-organization dependencies. It strengthens controls and auditability with a single, deterministic derivation source, supports granular componentization for large programs, for example data centers and network builds, and scales globally without duplicating master data across many organizations.

You first need to create the CST_PJC_ASSET_CATEGORY profile option.

  1. In the Setup and Maintenance work area, search for and select the Manage Profile Options task.

  2. On the Manage Profile Options page, click the New icon to create a new profile option.

  3. Set the parameters on the Create Profile Option page.

    • Profile Option Code: CST_PJC_ASSET_CATEGORY

    • Profile Display Name: CST_PJC_ASSET_CATEGORY

    • Application: Cost Management

    • Module: Cost Management

    • Description: Use the project identifiers and the asset category defined for item from the physical inventory organization when transferring project costs from logical organizations in drop-shipment flows.

    • SQL Validation: Select MEANING, LOOKUP_CODE from FND_LOOKUPS where LOOKUP_TYPE='YES_NO'

    • Start Date: Date when you want this profile to start

  4. Click Save and Close.

    In the Profile Option Levels section, enable the level as needed, preferably at the site level. Ensure both the Enabled and Updatable checkboxes are selected.

After the CST_PJC_ASSET_CATEGORY profile option is created, you need to enable it.

  1. In the Setup and Maintenance work area, access the Manage Cost Accounting Profile Options task.

  2. On the Manage Receipt Accounting Profile Options page, search for and select the CST_PJC_ASSET_CATEGORY profile option code.

  3. In the Profile Values section, set the Site level to Yes.

    • Yes = Uses the new logic to derive the purchasing asset category for sending to projects.

  4. Click Save and Close.

    Change in the profile value will take effect the next time you sign in.

To derive from the item validation organization of the cost organization, create and enable the CST_PJC_MASTER_ORG_ASSET_CATEGORY profile option similar to the CST_PJC_ASSET_CATEGORY profile option.