WIP COMPONENT ISSUE INCORRECT ACCOUNTING IN PROJECT MANUFACTURING (Doc ID 1331857.1)

Last updated on JANUARY 13, 2017

Applies to:

Oracle Project Manufacturing - Version 12.0.0 and later
Information in this document applies to any platform.
***Checked for relevance on 24-Jun-2013***

Goal

On : 12.0.0 version, SUPPORT

ACTUAL BEHAVIOR
-----------------------------
WIP Component Issue Transaction has correct accounts in EAM:

Account                             Debit    Credit
----------------------------       -------     -----
WIP Valuation accounts       XX
Inventory Valuation accounts            XX

but after transferring the costs to projects, the expenditure Item inquiry
form => cost Distribution lines show: Dr & Cr to Inventory valuation


Account                                 Debit   Credit
----------------------------           -------   -----
Inventory Valuation account      XX
Inventory Valuation account                XX


What we expect is that the accounting which flows to Projects is:

Dr Project cost
Cr Inventory

That is what is sent to GL

What comes to PA is:

Dr Inventory
Cr Inventory

which means that when we e.g. capitalise project assets the journal is:

Dr Asset Cost
Cr CIP (for all but the value of goods from Inventory)
Cr Inventory (for the value of inventory issues to the project)

The cost amount is fine - the accounting is clearly unacceptable.

WHY is this happening?

Solution

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