tag:blogger.com,1999:blog-828841710944162530.post763507595922625909..comments2024-03-15T01:16:50.371-07:00Comments on Bizinsight Consulting Blog: How to customize OM to Recognize the COGS in Past Dateeoracleappshttp://www.blogger.com/profile/18041136181325598938noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-828841710944162530.post-58054332532613116912010-05-08T15:18:00.837-07:002010-05-08T15:18:00.837-07:00Hi Rommel
Sorry for Late Reply , I answered your ...Hi Rommel<br /><br />Sorry for Late Reply , I answered your email few days back but my email bounced back.<br />Your Understanding for ATO /PTO is correct.Below are my Inputs<br />---------------<br />COGS applies to Shippable lines from Inventory and, REVENUE occurs on lines that are invoiced by AR. In the case of ATO and PTO, the lines that are shipped are not necessarily the same lines that are invoiced. Upon Revenue recognition of an invoicable line, AR will notify Costing. Costing follows the below strategy in revenue/COGS matching for configured items (* items)<br /><br />STRATEGY - <br />Revenue / COGS matching for configured items is achieved most logically by matching a shipped line (line with cost) to the Invoicable line that it most closely relates to. If the shipped line is itself invoiced, then the revenue recognition schedule for that line should drive COGS recognition. If the shipped line is not invoiced, COGS for that line should be driven by the revenue recognition for the nearest invoiced line that it rolls up to.<br />---------------------<br /><br />Hope that Helpseoracleappshttps://www.blogger.com/profile/18041136181325598938noreply@blogger.comtag:blogger.com,1999:blog-828841710944162530.post-90482383128268718572010-04-26T07:21:48.115-07:002010-04-26T07:21:48.115-07:00Hi eoracleapps,
Greetings!
This is in c...Hi eoracleapps,<br /><br /> <br /><br /> <br /><br />Greetings!<br /><br /> <br /><br />This is in continuation for my requirement which was resolved through your generous guidance. Hope you could comment / assist me on this.<br /><br /> <br /><br />Updating the LAST_EVENT_DATE to achieve a matched revenue and cogs for order lines using SHIP ONLY line flow to back dated orders/ship confirmation is generally working however I feel that this will not be a long term solution.<br /><br /> <br /><br />Let me illustrate how the entire scenario/requirement.<br /><br /> <br /><br />INVENTORY<br /><br />Inventory Item Transactable Stockable Shipped Costed Remarks<br /><br />ITEM A Yes No No No - resembles like a kit, we refer this as the principal item<br /><br />ITEM A1 YES Yes Yes Yes - component 1 of ITEM A<br /><br />ITEM A2 YES Yes Yes Yes - component 2 of ITEM A<br /><br /> <br /><br /> <br /><br />ORDER MANAGEMENT<br /><br />Inventory Item Shipping Invoice Lineflow<br /><br />ITEM A No Yes Bill Only<br /><br />ITEM A1* YES No Ship Only<br /><br />ITEM A2* YES No Ship Only<br /><br /> <br /><br />*As a workaround these items are setup as Promotional Items in the modifiers. Item A1 and A2 are created and added in the Order Lines when Item A is requested.<br /><br /> <br /><br />The order is picked and ship confirm. Eventually, will be processed for autoinvoice. In the invoice, it is only Item A appears. Component will not appear. (this is the desired behavior however, if only Item A1 is ordered, it will use an Order Lineflow which will pass through Shipping and to interface to AR which will appear in the invoice)<br /><br /> <br /><br />Since in R12, the order lines using Ship Only line flow uses a GL date based on the last event date which is when was the order line status became CLOSED. Backdated and month-end transaction leads to a mismatch between the COGS and Revenue which are recognized in different period.<br /><br /> <br /><br />P1 – Revenue Entries (Followed the Actual Ship Date used which is in P1)<br /><br />P2 – COGS Entries, (Order Line Closed at P2)<br /><br /> <br /><br /> <br /><br />Based on my reading from Oracle Cost Management Users Guide 7-26 concerning Sales Order: Configured Items PTO/ATO, that oracle supports the allocation of item cost between the earned and deferred COGS for ATO and PTO Items. Revenue/COGS su=ync for configured items is achieved by matching a shipped, costed lien to the invoiceable line that it mostly closely related to. If the shipped lien is invoiced, then the revenue recognition schedule for that line will be driven by the revenue recognition for the nearest invoiced line that it rolls up to.<br /><br /> <br /><br />Does setup for ATO / PTO be my long term solution to avoid the use of the workaround setup wherein I got problem in COGS for some orders which are back dated under a line flow SHIP ONLY.<br /><br /> <br /><br />I hope I have clearly illustrated the picture of the scenario and the requirement.<br /><br /> <br /><br /> <br /><br />Looking for forward to your response.<br /><br /> <br /><br />Thank you and more power.<br /><br /> <br /><br />Regards,<br /><br />ROMMELRommelnoreply@blogger.comtag:blogger.com,1999:blog-828841710944162530.post-79393903644247933612010-04-14T00:17:30.546-07:002010-04-14T00:17:30.546-07:00Hi Rommel
Yes you are very much correct , above s...Hi Rommel<br /><br />Yes you are very much correct , above scenario is only for SHIP Only line.<br />For Bill Only Lines , Invoicing activity plays an Inportant Role too.<br /><br />And thanks a lot for your commentseoracleappshttps://www.blogger.com/profile/18041136181325598938noreply@blogger.comtag:blogger.com,1999:blog-828841710944162530.post-86939574020150412572010-04-14T00:09:25.592-07:002010-04-14T00:09:25.592-07:00Hi,
Thanks for the infos and more power.
RommelHi,<br /><br />Thanks for the infos and more power.<br /><br />RommelAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-828841710944162530.post-19990119900464530012010-04-14T00:07:09.837-07:002010-04-14T00:07:09.837-07:00Hi eoracleapps,
thanks for sharing infos... I bel...Hi eoracleapps,<br /><br />thanks for sharing infos... I believe this scenario (requirement) refers to the SHIP ONLY order line.<br /><br />More power.rommelnoreply@blogger.com