Wrong Accounting at the Time of Shipment and Receiving for Internal Sales Order(ISO) Transactions (Doc ID 1502270.1)

Last updated on MARCH 08, 2017

Applies to:

Oracle Financials for India - Version 12.1.3 and later
Information in this document applies to any platform.

Symptoms

On : 12.1.3 version, Excise - Order to Cash Cycle

ACTUAL BEHAVIOR
---------------
Wrong Accounting at the time of ISO shipment and receipt if made between Trading to Trading.
1. Shipment Accounting:-
a.
Excise/Education Cess/SHE Cess Paid/Payable Debit
RG23D Credit

b.
Intransit Inventory Account Debit
RG23D Credit

In above in entry B ideally the credit should go to "Excise/Education Cess/SHE Cess Paid/Payable" but it is crediting "RG23D".

2. Receiving Accounting:-
Receiving Org - Inventory Receiving Credit
Receiving Org - RG23D Register Debit
Sending Org -Inter company payable Debit
Sending Org Inventory material Credit
Sending Org Inventory material Credit
Sending Org Inventory Receiving Debit

The accounting ideally should be as follows:-
Inter-Organization Receivable Sending Org Debit
Excise Paid/Payable account Sending Org Credit
In-transit Inventory account Receiving Org Debit
Inter-Organization Payable Receiving Org Credit


EXPECTED BEHAVIOR
-----------------------
Expects that the accounting should be right

STEPS
-----------------------
The issue can be reproduced at will with the following steps:
1. Create Internal order
2. Ship confirm
3. Create Receipt
4. Verify the accounting

BUSINESS IMPACT
-----------------------
The issue has the following business impact:
Due to this issue, users cannot have correct accounting for ISO transaction

Cause

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