WIP Accounting By Work Center
Last updated on DECEMBER 14, 2017
Applies to:Oracle Fusion Cost Management Cloud Service - Version 18.104.22.168.0 and later
Oracle Fusion Cost Management - Version 22.214.171.124.0 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)
Sign In with your My Oracle Support account
Don't have a My Oracle Support account? Click to get started
Million Knowledge Articles and hundreds of Community platforms