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R12 Account Requirements For Inventory Accrual Reconciliation (Doc ID 824388.1)

Last updated on DECEMBER 05, 2019

Applies to:

Oracle Purchasing - Version 12.0 and later
Oracle Payables - Version 12.0.0 and later
Oracle Inventory Management - Version 12.0.0 and later
Oracle Cost Management - Version 12.0.0 and later
Information in this document applies to any platform.

Purpose

It is imperative that the correct Accounts are used in Inventory Accrual Reconciliation to achieve the desired results. The Receiving Account should be separate from the Inventory AP Accrual Account because they belong to different Account classes.  The Expense AP Accrual Account should also be different from both Receiving Account and Inventory AP Accrual Account if Expenses Accrue at Period End, because the Event Classes in SLA are different. In  Release 12 the Invoice Price variance Account is the default contra Account used in Accrual Write Offs and should be different from the Accrual Accounts.

Scope

This bulletin will be useful for Company Accountants, Consultants and Oracle Support Engineers

Details

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In this Document
Purpose
Scope
Details
 What are these Accounts and where do they default from?
 How To Derive Accounts Using Account Derivation Rules in R12 SLA Architecture
 Why should the Receiving Account be separate from Inventory AP Accrual Account?
 
Why should the Expense AP Accrual Account be separate from the Inventory AP Accrual Account?
 Under what circumstances can the Inventory AP Accrual Account be the same as Expense AP Accrual Account?
 When can we change Accrue_On_Receipt_Flag in Purchasing Options and what impact does it have on Accrual Accounting?
 What is the Relevance of Invoice Price Variance Account in Accrual Transactions?
References

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