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Understanding COGS and DCOGS Recognition Accounting (Doc ID 1060202.1)

Last updated on SEPTEMBER 19, 2019

Applies to:

Oracle Cost Management - Version 12.0.0 and later
Information in this document applies to any platform.
Cost Management > SLA > Create Accounting
Sales Order Issue -> COGS Recognition
Cost of Goods Sold (COGS) and Deferred Cost of Goods Sold ( DCOGS)

COGS PROCESSES:
------------------------------
- Record Order Management Transactions
- Collect Revenue Recognition Information
- Generate COGS Recognition Events

Reports:
----------
- Material Distribution Detail report
- COGS Revenue Matching report

Diagnostic:
-------------
- COGSDIAG.SQL
See Note Data Collection Scripts for Cost Management (Note 378348.1)

Purpose




The purpose of this document is to explain how COGS Recognition works on Create Accounting engine.

There is no Deferred COGS functionality in 11i, this functionality was introduced in R12 to be compliant with the Sarbanes-Oxley legislation, hence before R12 there is no Cogs Recognition process. In 11i a sales order issue will be costed hitting the COGS account directly hence there is no Cogs recognition process, the normal accounting template for Sales order issue (no intercompany) will be Debit Cogs and Credit the Inventory valuation from where the item is being issued from.

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