WIP Accounting By Work Center
(Doc ID 2339078.1)
Last updated on FEBRUARY 02, 2019
Applies to:Oracle Fusion Cost Management Cloud Service - Version 188.8.131.52.0 and later
Oracle Fusion Cost Management - Version 184.108.40.206.0 and later
Information in this document applies to any platform.
How to drive Work center accounting by work center in SLA ?
Requirement is to track cost center segment in COA by work center recorded on
the work order operations for WIP valuation account.
There can be multiple operations on a work order and each operation can have
a different work center.
- Operation 10, Work Center - ABC, Resource hrs- 2 , Resource rate- 10GBP
- Operation 20, Work Center - DEF, Resource hrs- 3, Resource Rate- 20GBP
- If Work Center is ABC, WIP valuation account should be - XXX
- If Work center is DEF, WIP valuation account should be - YYY
Behavior of the application system from accounting standpoint:
Operation 10 :
- WIP valuation Dr ( XXX)- 20 GBP (2*10)
- Resource Absorption Cr- 20GBP
Operation 20 :
- WIP Valuation Dr (YYY)- 60 GBP (3*20)
- Resource Absorption Cr- 60 GBP
When user completes the work order, following accounting is generated:
- Inventory valuation Dr- 80 GBP
- WIP Valuatopn CR (YYY)- 80 GBP
The entire WIP Valuation CR goes to YYY. Users expect that following accounting is generated :
- Inventory valuation DR - 80GBP
- WIP Valuation Cr (XXX)- 20GBP
- WIP Valuation Cr (YYY)- 60GBP
Is this the intended behavior of the application?
(On work order completion transaction it is always the last operation work center which gets tagged)
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