RMA COGS Account Error of Intercompany Invoicing
(Doc ID 1491527.1)
Last updated on SEPTEMBER 22, 2019
Applies to:Oracle Order Management - Version 12.1.3 and later
Information in this document applies to any platform.
On : 12.1.3 version, Finance & Accounting
COGS account for intercompany RMA is wrong.
To correct COGS account of intercompay RMA SO.
The issue can be reproduced at will with the following steps:
1. COGS account setting up in Axx (Axxx Ledger) and Uxx (Uxxx Ledger)
In Axx item’s COGS account = 001.xxxx.xxxx.xxxx.xxx.xxxx.xxxx
In Uxx item's COGS account = 002.xxxx.xxxx.xxxx.xxx.xxxx.xxxx
2. Create intercompany SO, Pick and Ship successfully.
SO Number = xxxx
Item = xxxx
SO Status = Pending pre-billing acceptance after Ship confirm
Selling Legal Entity = Uxx
Shipping Legal Entity = Axx
Shipping Warehouse = Axx For Legal Entity From Axx
3. Create RMA referring to original SO, xxxx and RMA Receipt.
RMA SO number = xxxxx
Receiving Legal Entity = Uxx
Receiving Warehouse = Uxx in Uxx legal Entity
RMA SO Status = Close after RMA Receipt
4. Launch Cost Manager to create transaction distributions.
5. View RMA SO distribution in Material Transaction form.
Found the COGS account for RMA Receipt is wrong.
It is 001.xxxx.xxxx.xxxx.xxx.xxxx.xxxx.
Actually it should be 002.xxxx.xxxx.xxxx.xxx.xxxx.xxxx
from Uxx item’s COGS account.
This is used to be standard function, customer needs to customize COGS workflow to fulfill it. But now a new System Parameter "Source Line for deriving COGS account on referenced RMA" is provided.
A value 'Return Line to be used as Source' will ensure that the current Return Line is used as Source whereas a value of 'Referenced Sales Line to be used as Source' or NULL will ensure the old behavior of deriving COGS using the Source Sales Line attributes is retained.
(1) This System Parameter is not only used for determining the Warehouse from original SO or RMA Line, but is used for deriving all attributes related to COGS WF. In fact, this System Parameter is used to derive which Line ID is used to trigger COGS Workflow.
(2) If the System Parameter is set to 'Referenced Sales Line to be used as Source' or NULL the previous behavior is retained.
(3) If System Parameter is set to 'Return Line to be used as Source' then from COGS derivation perspective the behavior would be same as if the RMA is non-referenced one.
Per Bug 17067525 this patch is intended only for inter-company flow which does not use Advance accounting.
Currently for normal returns (Sales Order Shipping Org and Return Receiving Org being the same), COGS on return line will be derived from the Source Sales order. This is a feature from Costing module and the COGS account derived by OM will not be honored by Costing. If this is your case, then a bug / ER will have to be logged against Costing Team.
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