How GL accounts in Cost Groups referenced during inventory transactions (Doc ID 603869.1)

Last updated on APRIL 24, 2017

Applies to:

Oracle Cost Management - Version 11.5.9 to 11.5.10.3 [Release 11.5]
Information in this document applies to any platform.

Goal

How are Cost Groups referenced during inventory transactions? 

When the GL accounts setup on a Cost Group are referenced for an
inventory transaction versus when the GL accounts setup for the inventory organization are referenced for an inventory transaction.
.
For example, in the Cost Management Users Guide (Average Costing, page 5-44), the document indicates that for a 'Purchase Order Receipt to Inventory"...
"The accounting entries for the delivery portion of the transaction are as follows:
.
DEBIT - Organization Material account @ PO cost
CREDIT - Receiving Inspection account @ PO cost"
.
This implies that the Material Account setup at the inventory organization (Organization Material account) is what is referenced for the PO receipt, however there are Metalink notes (example:
Note:436698.1) that indicate that the GL account referenced on the Cost Group of the product is what would be used for an inventory transaction.
.
What inventory transactions reference the GL accounts (specifically - Material) at
the Inventory Organization level versus the Cost Group level.

Solution

Sign In with your My Oracle Support account

Don't have a My Oracle Support account? Click to get started

My Oracle Support provides customers with access to over a
Million Knowledge Articles and hundreds of Community platforms