Impact of R12 Design in Procure To Pay Accounting Flow

Impact of R12 Design in Procure To Pay Accounting Flow

Basic Changes

Functional design

1. Set Of Books is replaced by the term Ledger.

2. Accounting entries for transactions happening in all the applications such as Purchasing,Cost Management,Payables will go to General Ledger through a common module called “Subledger Accounting (SLA)” which is introduced in R12 and accounting entries can be viewed at SLA menu.

3. Accounting entries can be created manually at SLA level and can be transferred to General Ledger by running the program ‘Transfer to GL’.

4. SLA architecture gives the flexibility to derive the accounts for all transactions when it comes to SLA using Account Derivation Rules to meet various business needs and the accounting entries using those derived accounts can be transferred to General Ledger. Also it gives the flexibility to modify the accounting line types,balance types,conditions based on which the accounting gets generated for all the event classes.

5. SLA has the option to generate the accounting entries for respective subledgers in Draft mode or Final mode. Accounting entries can be created in Draft mode first in SLA which is a rough or draft entry to see whether the journal needs any modification in terms of account code or journal category. These draft entries will not get transferred to GL at any point of time. If any modification is required, it can be done using the features available in SLA and the accounting entries can be created in Final mode once the user feels that the journals do not need any modification. When the entries get created in Final mode in SLA, it will override the entries already created in Draft mode and these final mode entries alone will get transferred to GL.

5. The concept of Secondary Ledger has been introduced so that you can have two different accounting methods set at ledger level, for eg; Accrual basis accounting method for Primary ledger and Cash basis accounting method for Secondary ledger, and the ledgers can have different chart of accounts/currencies/calenders.  Actual and Encumbrance entries in the Procure to Pay cycle can be generated in secondary ledger also along with the entries in Primary ledger.

Technical design

1. The column set_of_books_id has been replaced with ledger_id in GL Tables

2. As a part of Subledger Accounting, new SLA tables XLA_AE_HEADERS, XLA_AE_LINES and XLA_DISTRIBUTION_LINKS have been introduced through which the accounting entries flow to GL.

3. PO details will not available in reference columns(reference_1,reference_2…) in tables GL_JE_LINES and GL_BC_PACKETS. Hence accounting entries in these tables can be retrieved only using SLA tables and GL_IMPORT_REFERENCES table.

4. Receiving Subledger/Inventory subledger/Payables subledger is not directly linked to table GL_JE_LINES,instead it is linked through the subledger tables XLA_AE_HEADERS, XLA_AE_LINES and XLA_DISTRIBUTION_LINKS.

5. XLA_AE_LINES table is mapped to GL_IMPORT_REFERENCES table with the gl_sl_link_id and gl_sl_link_table columns. The linking columns between GL_IMPORT_REFERENCES and GL_JE_LINES tables are je_header_id and je_line_num.

Setting up of Encumbrance

Defining the Subledger Accounting Method (SLAM) :

Navigation:

General Ledger>Set up>Financials>Accounting Set up Manager>Accounting Set ups
Query the ledger and you can find the option for setting up the Subledger Accounting Method

Subledger Accounting Method is having the option of

a) Standard Accrual
b) Encumbrance Accrual
c) Standard Cash
d) Encumbrance Cash

If Encumbrance needs to be enabled, then the Subledger Accounting Method has to be set as  “Encumbrance Accrual” in case of Accrual basis accounting method or “Encumbrance Cash” in case of cash basis accounting method for the ledger.
If Encumbrance is not used, then the Subledger Accounting Method has to be set as “Standard Accrual” or “Standard Cash” for the ledger.

Difference in Behavior between 11i and R12:

1. In 11i, Encumbrance related set ups include enabling the Budgetary control flag for the set of books, defining the Reserve for Encumbrance a/c, enabling the encumbrance for REQ,PO and INVOICE in Financial Options.
Where as in R12, Subledger Accounting Method has to be set for the ledger in addition to other set ups done in 11i. If it is set to “Standard Accrual”, Encumbrance cannot be used for that ledger even though the Encumbrance is enabled for the REQ,PO and INVOICE in Financial Options.

2. In 11i, there is an option to choose different encumbrance types for REQ,PO and INVOICE in Financial options but in R12, Financial options does not have the LOV to choose the encumbrance type. By default, Requisition encumbrance will be “Commitment”, PO encumbrance will be “Obligation” and invoice encumbrance will be “INVOICE”. If any of these 3 encumbrance types is not enabled in GL > Set up > Journal > Encumbrance, then the respective document REQ/PO/Invoice will throw budgetary control exception and will fail funds check.

Generation of Encumbrance Entries

Functional design

On Reserving and Approving the Requisition(PR)/Purchase Order(PO), Encumbrance amount gets reflected in Funds Inquiry screen and the encumbrance entries can be viewed in SLA menu in Purchasing module.

Navigation:
Purchasing>Accounting>SLA:User Main Menu>Accounting events
Query by transaction dates,ledger name and transaction number which is the PR/PO number

Following Accounting entries will be available in the HTML page

Budget a/c DR
Reserve For Encumbrance CR

There is an option to do funds check before taking the RESERVE and APPROVE action on the PR/PO by navigating to Tools > Check funds in Requisitions and Purchase Order forms to see the funds check behavior before approving the PR/PO. This funds check activity will create a draft entry in SLA and once the document is reserved, encumbrance entry will get created in Final mode overriding the draft entry already created for the “Check funds” action. If the funds check fails due to insufficient funds on taking the RESERVE action, entries will get created with Invalid status in SLA.

If Secondary ledger is associated to the primary ledger with the conversion level as ‘Subledger’ and if the secondary ledger is using encumbrance based SLAM, then encumbrance entries will get created in both primary subledger and secondary subledger on doing the RESERVE action on the PO.

The Concurrent Request “Transfer Journal Entries to GL” has to be submitted from Purchasing Responsibility to create the encumbrance entries in GL. On running this request, encumbrance entries created in Final mode alone will get transferred to GL.

Difference in Behavior between 11i and R12:

1. In 11i, encumbrance entries will get transferred to GL by running the concurrent program “Program-Create Journals” from GL responsibility. But in R12, “Transfer Journal Entries to GL” has to be submitted from Purchasing Responsibility to create the encumbrance entries in GL.

2. In 11i, it is not possible to view the encumbrance entries in Purchasing module, where as in R12, the entries can be viewed from SLA menu in Purchasing.

3. In 11i, a credit against the Reserve For Encumbrance a/c (RFE) can be seen only at the time of posting the Encumbrance debit entry in GL. But in R12, RFE a/c gets credited along with the budget a/c debit entry which can be viewed from SLA menu in Purchasing.

Technical design

On reserving and approving the PR/PO, encumbrance entries get generated in table GL_BC_PACKETS with column source_distribution_type as ‘PO_REQ_DISTRIBUTIONS_ALL’ for PR and ‘PO_DISTRIBUTIONS_ALL’ for PO and column source_distribution_id_num_1 as req distribution id for PR and po distribution id for PO.

Encumbrance entries will also get generated in the table PO_BC_DISTRIBUTIONS which has been newly introduced in R12. This table has the columns ‘reference4′ and ‘reference3′ columns where the PO/PR number and distribution id gets populated.
These accounting entries are also populated in the table XLA_AE_LINES. The table XLA_AE_HEADERS will show whether the encumbrance entry is created in Draft mode or Final mode or Invalid mode indicated by the column accounting_entry_status_code and it will also show whether the entry is transferred to GL or not indicated by the column gl_transfer_status_code.

The tables PO_BC_DISTRIBUTIONS and XLA_AE_HEADERS are linked with the column ‘event_id’.
The tables XLA_AE_HEADERS and GL_BC_PACKETS are linked with the column ‘ae_header_id’.
The tables XLA_AE_HEADERS and XLA_AE_LINES are linked with the column ‘ae_header_id’.

Once the entries are populated in GL and those entries are posted, records from the table GL_BC_PACKETS will get deleted but the entries in table PO_BC_DISTRIBUTIONS will remain always.

Difference in Behavior between 11i and R12:

In 11i, Encumbrance entries created in GL_BC_PACKETS will be directly moved to GL_JE_LINES by running the CJE program, whereas in R12, Encumbrance entries gets generated in a new table PO_BC_DISTRIBUTIONS and also in XLA tables in addition to GL_BC_PACKETS.

Receipt Accounting

As mentioned earlier, accounting entries for transactions happening in Receiving subledger and inventory subledger will flow to GL only through SLA which involves a new process called “Create Accounting process”.

Create Accounting process for Online Accruals

When purchase order is set to accrue at receipt, accounting entries get created in Receiving subledger once the receiving transactions are done. Then the Create Accounting process should take place to create journals in SLA accompanied by Transfer to GL process and posting which are optional. Users can choose whether they want the journal import and posting also to happen at the same time when the create accounting process is done or the Transfer to GL/Posting can be done explicitly. But if encumbrance is enabled, it is always preferred to do the Transfer to GL and Posting along with the create accounting process by having the values for parameters ‘Transfer to GL’ and ‘Posting in GL’ as YES while submitting the create accounting program. For more details on this, please refer to Note.728064.1. Another main implication of this model of doing the GL transfer and posting along with create accounting process is that, on failure of Journal Import, the data will be rolled back to SLA tables and hence there will not be any data in GL interface.

This Create Accounting Process involves two concurrent programs Create Accounting-Receiving which can be submitted from Purchasing>View Requests or from Cost Management Responsibility > SLA menu > Create Accounting and Create Accounting-Cost Management which can be submitted from Cost Management Responsibility > SLA menu. ”Create Accounting – Receiving” only accounts for Expense destination PO Receipt. “Create Accounting – Cost Management” accounts for all transactions mentioned below.

- Expense destination PO Receipt
- All Inventory transactions including inventory destination POs
- WIP transactions
- Accrual Write Off transactions

Parameters used while submitting the Create Accounting concurrent program:

• Ledger – Ledger (SOB) name to be given
• End date – Accounting entries to be created for all receipts  TO DATE
  a) Draft – Draft mode creates the SLA journals as Draft which can be modified. Hence these entries will not get transferred to General Ledger and it will be available only in SLA. Once the entries created in Draft mode are verified and confirmed, Create Accounting program has to be run in Final mode and the entries getting created now will override the draft entries in SLA and will get transferred to General Ledger.
  b) Final – Final mode creates SLA journals which can not be modified and can be transferred to General Ledger.
• Report – Options available are Detail or Summary
• Transfer to General Ledger – Yes or No – If the mode is set to Final and the value for this parameter is set to No, then the accounting entries will get created only in SLA table and it will not be available in gl_interface or GL. You need to submit the program “Transfer to Gl” in Cost Management Responsibility > SLA to transfer the entries created in Final mode from SLA to General Ledger.
• Post in General Ledger – Yes or No

  a) Online Accruals with Expense destination

Functional design

When the PO which is set to accrue at receipt is received and delivered to expense destination, Receipt Accounting happens in Receiving subledger. Then the Create Accounting process has to be submitted to generate the receipt accounting in SLA and GL.
This receipt accounting includes encumbrance reversal entries if the PO is encumbered, otherwise it just includes the actual entries. These entries can be viewed in SLA menu in Cost Management module.

Navigation:
Cost Management,SLA > SLA >SLA: Inquiry > Accounting event
Query by transaction dates and ledger name

Following Accounting entries will be available in the HTML page

AP Accrual a/c CR
Receiving Inspection a/c DR

Charge a/c DR
Receiving Inspection a/c CR

If encumbrance is enabled, encumbrance reversal also can be viewed as follows

Budget a/c CR
Reserve For Encumbrance DR

These entries can also be viewed from Receiving Transaction Summary > View Accounting.

In encumbrance enabled environment, once the receiving process is done, Create Accounting process and posting in GL has to be completed in order to get the encumbrance reversal and actuals to hit the GL funds inquiry simultaneously as the funds availability calculation in Funds Inquiry screen will consider the encumbrance reversal and actuals only when they are posted in GL.

Note: R12 SLA architecture does not have this design initially. This new design is introduced by a patch which is explained in more detail in Note.728064.1 to maintain accurate funds availability for the budget account at any point of time.

Technical design

When purchase order has Accrue on Receipt set to YES, Receiving Transaction Processor generates the accounting entries in RCV_RECEIVING_SUB_LEDGER upon Receipt and Deliver of the PO. Then the Create Accounting process should take place to create SLA journals which will insert records in XLA_AE_HEADERS, XLA_AE_LINES and XLA_DISTRIBUTION_LINKS. These accounting entries will be available in the table XLA_AE_LINES. The event type code in XLA_AE_HEADERS for this Encumbrance Reversal entry is DELIVER_EXPENSE and the event type code in XLA_AE_HEADERS for these actual entries will be RECEIVE for receipt accounting and DELIVER_EXPENSE for delivery accounting.
The tables RCV_RECEIVING_SUB_LEDGER and XLA_DISTRIBUTION_LINKS can be linked using the column source_distribution_id_num_1. The value of rcv_sub_ledger_id has to be given as source_distribution_id_num_1 for the source_distribution_type “RCV_RECEIVING_SUB_LEDGER” in XLA_DISTRIBUTION_LINKS table.

  b) Online Accruals with Inventory destination

Functional design

When the PO is received and delivered to inventory destination, Receipt Accounting happens in Receiving subledger and Deliver Accounting happens in inventory subledger. Then the Create Accounting process has to be submitted to generate the receipt accounting and deliver accounting in SLA and GL. This deliver accounting includes encumbrance reversal entries if the PO is encumbered, otherwise it just includes the actual entries.

View Accounting from Receiving Transaction Summary will show the accounting entries for RECEIVE transaction. To view the actual entries for DELIVER transaction, navigate to Material Distributions form which will show the accounting entries once the deliver transaction is costed. To view these actual entries and Encumbrance Reversal entries in SLA after create accounting process is done, navigate to

Cost Management Resp>SLA>Inquiry>Accounting event
Query by transaction dates and ledger name

Following Accounting entries will be available in the HTML page

AP Accrual a/c CR
Receiving Inspection a/c DR

Material Valuation a/c DR
Receiving Inspection a/c CR

If encumbrance is enabled, encumbrance reversal also can be viewed as follows provided the flag “Reverse encumbrance” is checked in organization parameters > Costing tab.

Budget a/c CR
Reserve For Encumbrance DR

In encumbrance enabled environment, once the receiving process is done, Create Accounting process and posting in GL has to be completed in order to get the encumbrance reversal and actuals to hit the GL funds inquiry simultaneously as the funds availability calculation in Funds Inquiry screen will consider the encumbrance reversal and actuals only when they are posted in GL.

Note: This design related to encumbrance reversal and actuals hitting the funds inquiry after posting is yet to be implemented which will be done soon as this design is restricted only to expense destination POs and not for inventory. As of now, for inventory destination POs, there is a limitation in funds availability calculation where encumbrance reversal hits the funds inquiry at the time of receipt and delivery where as actuals hits the funds inquiry only at the time of posting the actual entries in GL after the create accounting process. Therefore delaying the create accounting process will result in incorrect funds availability. This limitation will be overcome by introducing the same design for inventory destination which is already done for expense POs.

 Technical design

When purchase order has Accrue on Receipt set to YES and destination_type_code is set to Inventory, Receiving Transaction Processor generates the accounting entries in RCV_RECEIVING_SUB_LEDGER upon Receipt and Cost manager generates the accounting entries in MTL_TRANSACTION_ACCOUNTS upon Deliver of the PO. Then the Create Accounting process should take place to create SLA journals which will insert records in XLA_AE_HEADERS, XLA_AE_LINES and XLA_DISTRIBUTION_LINKS. These accounting entries will be available in the table XLA_AE_LINES. The event type code in XLA_AE_HEADERS for this Encumbrance Reversal entry is PO_DEL_INV and the event type code in XLA_AE_HEADERS for these actual entries will be RECEIVE for receipt accounting and PO_DEL_INV for delivery accounting.

The tables MTL_TRANSACTION_ACCOUNTS and XLA_DISTRIBUTION_LINKS can be linked using the column source_distribution_id_num_1. The value of  inv_sub_ledger_id has to be given as source_distribution_id_num_1 for the source_distribution_type “MTL_TRANSACTION_ACCOUNTS”.

Difference in Behavior between 11i and R12:

1. In 11i, Receiving Transaction Processor creates the Receipt Accounting entries in Receiving Subledger as well as in GL_INTERFACE. Journal Import will be done to transfer the entries to GL_JE_LINES where as in R12, Receiving Transaction Processor will create the entries only in Receiving Subledger. Create Accounting Program has to be run to create SLA journals which in turn will trigger the journal import.

2. In 11i, if encumbrance is enabled, encumbrance reversal and actuals will undergo funds check when these entries are populated in gl_interface and GL funds inquiry will reflect the encumbrance reversal and actuals even before posting the entries in GL. But in R12, encumbrance reversal and actuals will hit the GL funds inquiry only when these entries are posted in GL even though funds check happens in SLA itself.

  c) Create Accounting process for Period End Accruals

Functional design

When the PO which is set to accrue at period end is received and delivered to expense destination and Receipt Accruals Period End program is submitted, accounting entries get created in Receiving subledger during period end for the PO shipments which has the received quantity greater than billed quantity. Then the Create Accounting process has to be submitted to generate the receipt accounting in SLA and GL.

This create accounting process is accompanied by Subledger Multiperiod Accounting program which gets spawned automatically to generate the reversal for the accrual entries for the next period in SLA. Depending on the value for  the parameter “Transfer to GL” given while submitting the create accounting program, Journal import will happen and the accrual entries for the current period and next period will get transferred to GL.

Note: Since SLA does the accrual reversal automatically for the next period which gets transferred to GL, Auto Reversal feature available in GL should not be used in R12. Otherwise, it will result in duplication of accrual reversal entries in GL. To get more details on Auto-Reversal feature and its impact on Period end accruals in R12, please refer to Note.873399.1

During this create accounting process, it has to be ensured that the end date given while submitting the Create Accounting program is greater than or equal to the first date of the next period in which accrual reversal is supposed to happen. If the end date of Create Accounting program is less than the first date of the next period, accrual entries for the current period alone will get created in Final mode and will get transferred to GL, where as  the reversal entries will get created in SLA with status as ‘Incomplete’ and it is not eligible to get transferred to GL . To transfer the accrual reversal entries which got created with INCOMPLETE status from SLA to GL, it has to be final accounted in SLA first which can be done by running the program ‘Complete Multiperiod Accounting’ with end date which includes the first date of next period and then it can be transferred to GL. If the GL period is closed for the current period or for the next period, period end accrual entries and reversal entries will get created only in SLA. To transfer these entries to GL, the concurrent request “Transfer Journal entries to GL-Receiving” needs to be submitted after opening the GL period.

This receipt accounting includes encumbrance reversal entries if the PO is encumbered, otherwise it just includes the actual entries. These entries can be viewed in SLA menu in Cost Management module and it cannot be viewed from Receiving Transactions Summary > Tools > View Accounting.

Navigation:
Cost Management>SLA Resp>SLA>Inquiry>Journal entries
Query by transaction dates and ledger name

Following Accounting entries will be available in the HTML page

AP Accrual a/c CR
Charge a/c DR

If encumbrance is enabled, encumbrance reversal also can be viewed as follows

Budget a/c CR
Reserve For Encumbrance DR

for the period in which Receiving is done and for the next period,you can see the reversal entry as

AP Accrual a/c DR
Charge a/c CR

If encumbrance is enabled, encumbrance reversal also can be viewed as follows

Budget a/c DR
Reserve For Encumbrance CR

As mentioned for online accruals with Expense destination, in encumbrance enabled environment, once the receiving process is done, Create Accounting process and posting in GL has to be completed in order to get the encumbrance reversal and actuals to hit the GL funds inquiry simultaneously as the funds availability calculation in Funds Inquiry screen will consider the encumbrance reversal and actuals only when they are posted in GL.

Note: R12 SLA architecture does not have this design initially. This new design is introduced by a patch which is explained in more detail in Note.728064.1 to maintain accurate funds availability for the budget account at any point of time.

Encumbrance will get reversed from the PO once the invoice is validated.Encumbrance on the PO will get converted to Invoice encumbrance. On doing Create Accounting for the invoice, Encumbrance on the invoice will also get reversed. But this invoice encumbrance reversal and Actuals will get reflected in Funds Inquiry screen only when these entries are posted in GL.

Technical design

When Purchase Order has Accrue on Receipt flag set to NO, Receipt Accruals Period End program generates the accounting entries only in RCV_RECEIVING_SUB_LEDGER. Then the Create Accounting process should take place to create SLA journals which will insert records in XLA_AE_HEADERS, XLA_AE_LINES and XLA_DISTRIBUTION_LINKS. These accounting entries will be available in the table XLA_AE_LINES. The event type code in XLA_AE_HEADERS for this Encumbrance Reversal entry is PERIOD_END_ACCRUAL and the event type code in XLA_AE_HEADERS for these actual entries will be RECEIVE for receipt accounting and PERIOD_END_ACCRUAL for delivery accounting.
The tables RCV_RECEIVING_SUB_LEDGER and XLA_DISTRIBUTION_LINKS can be linked using the column source_distribution_id_num_1. The value of rcv_sub_ledger_id has to be given as source_distribution_id_num_1 for the source_distribution_type “RCV_RECEIVING_SUB_LEDGER” in XLA_DISTRIBUTION_LINKS table.

Difference in Behavior between 11i and R12:

1. In 11i, Receipt Accruals Period End program creates the Receipt Accounting entries in Receiving Subledger as well as in GL_INTERFACE. Journal Import will be done to transfer the entries to GL_JE_LINES where as in R12, Receipt Accruals Period End program will create the entries only in Receiving Subledger. Create Accounting Program will create SLA journals and ‘Transfer Journal entries to Gl’ program will move the entries to GL from SLA.

2. In 11i, Accrual entries need to be reversed manually in the next period whereas in R12, reversal of accrual entries for the next period will happen automatically

3. In 11i, if encumbrance is enabled, encumbrance reversal and actuals will undergo funds check when these entries are populated in gl_interface and GL funds inquiry will reflect the encumbrance reversal and actuals even before posting the entries in GL. But in R12, encumbrance reversal and actuals will hit the GL funds inquiry only when these entries are posted in GL even though funds check happens in SLA itself.

Impact of Secondary ledger on Create Accounting process (applicable for both Online accruals and Period end accruals)

If Secondary ledger is associated to the primary ledger with the conversion level as ‘Subledger’ and if the secondary ledger is using Accrual based SLAM (e.g Encumbrance Accrual/Standard Accrual), then encumbrance entries will get created in both primary subledger and secondary subledger on doing the Create Accounting process. On the other hand, if the Secondary ledger associated to the primary ledger is using Cash based SLAM (e.g Encumbrance Cash/Standard Cash) with the conversion level as ‘Subledger’, then the setup mentioned below is mandatory. Otherwise, Create Accounting process will error out or complete with warning and will not generate the receipt accounting entries neither in Primary ledger nor in Secondary ledger.

Setup to be done for Secondary ledger using Cash based SLAM:

1. Go into the responsibility: General Ledger

2. Navigate to MENUPATH > Set up > Financials > Accounting Setup Manager > query for Primary ledger > Update accounting options

3. Go to Secondary ledger > Subledger accounting options > Update > Search for the application Cost management > Update accounting options  > Set Sublegder accounting enabled to NO > Click on Apply

When the Secondary ledger is using Cash basis accounting, Accrual based accounting entries should not get generated for Receiving transactions for the secondary ledger. Hence Create Accounting process should not create accounting entries for the source Cost Management. Therefore it is recommended to do the above mentioned set up of disabling the Subledger Accounting for Cost management application for Secondary ledger.

Impact of Cash basis accounting on Create Accounting process (applicable for both Online accruals and Period end accruals)

When the Primary ledger itself is using Cash basis accounting, Accrual based accounting entries should not get generated for Receiving transactions for the Primary ledger. In such case, it is not required to run the programs ‘Create Accounting-Receiving’ or ‘Create Accounting-Cost Management’ as no accounting entries will be created by these programs.

 Impact of Periodic Average Costing on Create Accounting process (applicable for both Online accruals and Period end accruals) 

R12 SLA design has no impact when Periodic Average Costing (PAC) is used as it follows the same 11i approach. Accounting entries created in PAC will not go to SLA and it will not undergo the create accounting process. Instead it will get transferred to GL via gl_interface from PAC distributions . But the perpetual accounting entries will also happen along with PAC entries where the perpetual accounting will follow the SLA design. But those entries should not get imported from SLA to GL as PAC accounting will be transferred to GL. To restrict the GL import of perpetual accounting entries, “Transfer to GL” option in organization parameters should be set to None for organizations which use PAC so that xla_ae_headers for perpetual accounting will have the gl_transfer_status_code as “NT” and it will not be picked by the journal import process.

Accrual Reconciliation Process

a) Accrual Reconciliation Reports:
After completing  the Receipt transactions and Invoice matching, Create Accounting program has to be run in Final mode along with the  subsequent transfer of entries to General Ledger after which the  Accrual Reconciliation Process has to be started.

“Accrual Reconciliation Load Run” program has to be submitted with transaction date as the parameter which will populate the data in tables CST_RECONCILIATION_SUMMARY, CST_AP_PO_RECONCILIATION and CST_MISC_RECONCILIATION. Now run the Accrual Reconciliation Report for the operating unit and do the reconciliation. There are 3 different types of Accrual Reconciliation Report

1. AP and PO Accrual Reconciliation Report – This report shows the transaction details based on each accrual account for each PO distribution with the Receiving transaction amount and invoice transaction amount with a net balance greater than zero.

Parameters used while submitting the program:

Operating Unit – Select the Operating Unit for the report
Title – Enter your title for the report
Sort by – Parameter to specify how to sort the data at the distribution level – Valid Values – Age in days,Total Balance,Vendor,PO number (default)
Aging Period Days – The number of days by which to group transactions sorted in descending order
Item From and Item To – Range of items to consider for this report
Vendor From and Vendor To – Range of Vendors to consider for this report
Min Outstanding Balance and Max Outstanding Balance – Limits of distribution balance to dispaly
Balancing Segment From and Balancing Segment To – Range of balancing segment to consider for this report

2. Summary Accrual Reconciliation Report – This report shows the total balances for each accrual account without any distribution details and individual transaction amount and also shows whether that summarized accrual balance is related to AP PO transaction or AP no PO transaction or Miscellaneous Inventory transaction.
Parameters used while submitting the program:

Operating Unit – Select the Operating Unit for the report
Title – Enter your title for the report
Balancing Segment From and Balancing Segment To – Range of balancing segment to consider for this report

3. Miscellaneous Accrual Reconciliation Report – This report shows the transaction details based on each accrual account which got hit because of Miscellaneous Inventory transactions and AP NO PO transactions.Accrual amount will be displayed for each transaction along with the source whether it is INV or AP. This report picks data from CST_MISC_RECONCILIATION which gets populated during the load run process.

Parameters used while submitting the program:

Operating Unit – Select the Operating Unit for the report
Title – Enter your title for the report
Sort by – Parameter to specify how to sort the data at the distribution level – Valid Values – Item,Transaction Date (default) , Amount
Date From – Starting date of time period to display for this report
End Date – Ending date of time period to display for this report
Item From and Item To – Range of items to consider for this report
Min Amount and Max Amount – Limits of transaction amount to display
Balancing Segment From and Balancing Segment To – Range of balancing segment to consider for this report

Difference in Behavior between 11i and R12:

1. In 11i, the Accrual Rebuild Reconciliation Report  which was  required  to be run  to populate the accrual reconciliation table is now replaced by “Accrual Reconciliation Load Run” program in R12. The table PO_ACCRUAL_RECONCILE_TEMP_ALL has been replaced by the tables  CST_RECONCILIATION_SUMMARY and  CST_AP_PO_RECONCILIATION in R12.

2. 11i has only one Accrual Reconciliation Report which will show all the transactions for the accrual account irrespective of whether it is Miscellaneous INV transaction or AP NO PO transaction. But in R12 there are 3 different reports, one for AP-PO individual transactions, one for Miscellaneous transactions showing the individual transaction details for source INV and AP and one for showing the summarized accrual balance for all transaction types.

3. 11i has the option of running the Accrual Reconciliation Report with net accrual balance as 0 as well as net accrual balance greater than 0. But in R12, Accrual Reconciliation Report will show only the transactions having net accrual balance greater than zero.

4. In 11i, Accrual Reconciliation Report can be run for a specific data range and accrual balances can be checked for a specific period. But in R12, Accrual Reconciliation Report always shows the ‘as on date’ accrual balance and the report cannot be run for a specific date range.

b) Accrual Write-off Process:Once the accrual entries for the PO or invoice are shown in Accrual Reconciliation Report, Accrual Write-off can be done using Cost Management or Purchasing responsibility>Accounting>Accrual write offs>AP and PO. This will delete the accrual entry from CST_AP_PO_RECONCILIATION table and populate the write off transaction in CST_WRITE_OFFS table. This write off transaction can also be viewed in the form View Write offs.
Accounting entries have to be created in SLA and GL for these write off transactions by submitting the Create Accounting program.This can be viewed in SLA menu by navigating to Tools > View Accounting in the View Write offs form.

Following Accounting entries will be available in the HTML page for a RECEIVE transaction

Accrual a/c DR
Offset a/c CR

Similarly for an AP PO MATCH transaction

Accrual a/c CR
Offset a/c DR

This Offset a/c will always be the Invoice Price Variance account.

Accounting events for this write off transaction will show the Event status as “Final Accounted” once the Create Accounting program is submitted and the entries are transferred to GL.

Difference in Behavior between 11i and R12:

1. The table PO_ACCRUAL_WRITE_OFFS_ALL has been replaced by the table CST_WRITE_OFFS in R12.

2. In 11i, accounting will not get created for the write off transaction and accrual entry has to be manually adjusted in GL whereas in R12, Create Accounting program will create the accrual entry for the write off transaction in SLA as well as in GL and hence manual adjustment of accrual entry is not required.

Posted in Oracle E-Business Applications, Oracle Financial, Oracle Inventory, Oracle Purchasing | Leave a Comment »

Update The Item Average Cost From Transaction Open Interface

Posted by Mahmoud Elemam on September 23, 2010

Update The Item Average Cost From Transaction Open Interface

INSERT
INTO mtl_transactions_interface
(
source_code ,
source_line_id ,
source_header_id ,
process_flag ,
transaction_mode ,
creation_date ,
last_update_date ,
created_by ,
last_updated_by ,
inventory_item_id ,
organization_id ,
transaction_date ,
transaction_quantity ,
transaction_uom ,
transaction_type_id ,
transaction_interface_id ,
material_overhead_account ,
material_account ,
resource_account ,
overhead_account ,
outside_processing_account,
cost_group_id
)
SELECT ‘AvgCostUpdate’ ,
1 ,
1 ,
1 ,
3 ,
SYSDATE ,
SYSDATE ,
1010026 ,
1010026 ,
1137465 ,
606 ,
sysdate ,
0 ,
‘Ea’ ,
80 ,
mtl_material_transactions_s.nextval ,
17347 ,
17347 ,
17347 ,
17347 ,
17347 ,
1327
FROM dual;

INSERT
INTO mtl_txn_cost_det_interface
(
cost_element_id ,
level_Type ,
Organization_id ,
new_average_cost ,
transaction_interface_id,
last_update_date ,
creation_date ,
last_updated_by ,
created_by
)
VALUES
(
1 ,
1 ,
606 ,
20 ,
16032545,
sysdate ,
sysdate ,
1010026 ,
1010026
);

COMMIT;

Next step, Please query and submit these transactions from:
Inventory -> Transactions -> Transaction Open Interface, submit by selecting Tools -> Resubmit All.

Note: Ensure that you have the transaction managers (Inventory -> Setup -> Interface Managers – Material Transaction Manager) up and running.

Posted in Oracle DBA, Oracle E-Business Applications, Oracle Inventory | Leave a Comment »

How Does the Landed Cost Management Impacts the Accounting Flow in a Procure To Pay Cycle

Posted by Mahmoud Elemam on September 10, 2010

What are the accounting entries in a Procure to Pay cycle when the PO shipment is enabled for Landed Cost Management?

1. Receive the PO with estimated landed cost calculated
- Receiving Inspection a/c DR @ Estimated Landed Cost
- AP Accrual a/c CR @ PO Price inclusive of Non-Recoverable tax
- Landed Cost Absorption a/c CR @ (Estimated Landed cost – PO Price inclusive of Non-Recoverable tax) (This a/c is defined in Receiving options)

• These accounting entries can be viewed from Receiving Transaction summary > Transactions > Tools > View Accounting
• These entries get created in rcv_receiving_sub_ledger

2. Deliver the PO to Inventory destination

For Standard Costing organization
- Material Valuation a/c DR @ Std Cost
- Receiving Inspection a/c CR @ Estimated Landed Cost
- Purchase Price Variance a/c DR @ difference between Std Cost and Estimated Landed Cost

For Average Costing organization– Material Valuation a/c DR @ Estimated Landed Cost
- Receiving Inspection a/c CR @ Estimated Landed Cost

• These entries can be viewed from Inventory > Material Transactions > Distributions
• These entries get created in mtl_transaction_accounts

3. Invoice validated and actual landed cost calculated

Once the Actual Landed Cost is calculated, LCM will populate this information in cst_lc_adj_interface with rcv_transaction_id corresponding to the receipt to which the invoice is matched. Then the adjustment entries would get created as given below on running the Landed Cost Adjustment Processor

Landed cost Adjustment – Receiving 
- Receiving Inspection a/c DR @ difference between Actual LC and Estimated LC
- Landed Cost Absorption a/c CR @ difference between Actual LC and Estimated LC

Landed cost Adjustment – Delivery (Standard Costing)
- Receiving Inspection a/c CR @  difference between Actual LC and Estimated LC
- Purchase Price Variance a/c DR @ difference between Actual LC and Estimated LC

• These accounting entries can be viewed from Receiving Transaction summary > Transactions > Tools > View Accounting
• These entries get created in rcv_receiving_sub_ledger

Landed cost Adjustment – Delivery (Average Costing)
- Receiving Inspection a/c CR @ difference between Actual LC and Estimated LC
- Landed Cost Absorption a/c DR @ difference between Actual LC and Estimated LC

Average Cost Update (Average Costing)
- Material Valuation a/c DR @ difference between Actual LC and Estimated LC
- Landed Cost Absorption a/c CR @ difference between Actual LC and Estimated LC

If this Average cost update happens for updating the item cost with the difference between Actual and Estimated landed cost for an item which has 0 or negative on-hand quantity, then the accounting entries would be as follows:

- Material Valuation a/c DR @ 0
- Landed Cost Absorption a/c CR @ difference between Actual LC and Estimated LC
- Landed Cost Variance a/c DR @ difference between Actual LC and Estimated LC (This a/c is defined inventory > Set up > Organization > Parameters)

• These entries can be viewed from Inventory > Material Transactions > Distributions
• These entries get created in mtl_transaction_accounts
• The link between the Receiving transaction and Average Cost update is done through txn_source_line_id. Rcv_transaction_id of deliver transaction is stamped as txn_source_line_id in mtl_material_transactions for the LCM adjustment transaction which has the transaction type as Average Cost Update.

4. Create accounting for item invoice

- AP Accrual a/c DR @ PO Price
- Tax a/c DR @ tax rate
- Liability a/c CR @ Invoice Price including tax
- LCM:Invoice Price Variance a/c DR @ difference between PO Price and Invoice Price (This IPV a/c is defined in Receiving options)
- LCM:Exchange Rate Variance a/c DR @ difference between receipt exchange rate and Invoice exchange rate (This ERV a/c is defined in Receiving options)

5. Create accounting for charge invoice

- Default Charge a/c DR @ invoice price (This charge a/c is defined in Receiving options)
- Liability a/c CR @ invoice price

6. Perform Return transaction or negative correction after invoice is accounted and actual landed cost is calculated

Return to Vendor /Negative Correction
- Receiving Inspection a/c CR @ Actual Landed Cost
- AP Accrual a/c DR @ PO Price + Non-Recoverable Tax
- Landed Cost Absorption a/c DR (Actual Landed Cost – {PO Price+Non-Recoverable Tax})

• These accounting entries can be viewed from Receiving Transaction summary > Transactions > Tools > View Accounting
• These entries get created in rcv_receiving_sub_ledger

Return to Receiving/Negative Correction (Standard Costing)
- Material Valuation a/c CR @ Std Cost
- Receiving Inspection a/c DR @ Actual Landed Cost
- Purchase Price Variance a/c CR @ difference between Std cost and Actual Landed Cost

Return to Receiving/Negative Correction (Average Costing)
- Material Valuation a/c CR @ Actual Landed Cost
- Receiving Inspection a/c DR @ Actual Landed Cost

• These entries can be viewed from Inventory > Material Transactions > Distributions
• These entries get created in mtl_transaction_accounts

7. Raise a Debit Note

- AP Accrual a/c CR @ PO Price
- Tax CR @ tax rate
- Liability a/c DR @ Invoice Price including tax
- Invoice Price Variance a/c CR @ difference between PO price and Invoice Price

Note:

1. Estimated and Actual Landed Cost are always inclusive of PO price and Non-Recoverable tax.
2. Landed Cost Absorption account need not be having zero balance at the end of this procure to pay cycle in LCM enabled organization. It will be zero only if default charge a/c defined in Receiving options is same as the landed cost absorption a/c and Actual landed cost is same as the Estimated landed cost.
3. Accounting entries for Expense POs and Shopfloor destination POs has no impact as Landed Cost Management is not applicable for Purchase Orders with Expense and Shopfloor destination.
4. Landed Cost Management has no impact on the Encumbrance Accounting as the PO gets reserved at PO price and it gets reversed at PO price only even though the actual charge account get hit at landed cost.
5. Retroactive Pricing is not supported in LCM enabled organization and hence retroactive price update program will not create the retroactive price adjustment entries in Receiving subledger for the receiving transactions created.

Posted in Accounts Payables, General Ledger, Landed Cost, Oracle E-Business Applications, Oracle Financial, Oracle Inventory, Oracle Purchasing | 3 Comments »

Release 12.1.1 New Features in Oracle Landed Cost Management

Posted by Mahmoud Elemam on September 10, 2010

Overview

Oracle’s Landed Cost Management application is a new product released on EBS r.12.1.
Landed Cost Management enables organizations to gain insight into all of the “real”costs associated with acquiring products including broker, terminal, insurance, and transportation fees as well as duties and taxes. These costs are initially estimated and updated with actual amounts as they become known allocating them to shipments, orders, and products. Cost methods and inventory valuations are accurately maintained providing better visibility into an individual product’s profitability and an organization’s outstanding exposure. This data provides better insight for product forecasting and budgeting and provides clear evidence of the detailed accumulation of expenses for regulatory requirements and reporting.

Features

1. Charge Management
Many of the charges that apply to landed costs can be complicated in their application, maintenance, and ongoing tracking. These charges are received in a variety of formats at different points during a fulfillment process. These points include product creation, sourcing, order creation, shipping, receiving, and invoicing. Organizing and tracking these charges as soon as they are incurred is key to a company fully understanding their outstanding liabilities.

Oracle Landed Cost Management collects an unlimited number of estimated charges and allows users to configure how charges should be applied to a shipment line, a group of lines within a shipment, or an entire shipment. It applies these charges based on weight, volume, quantity, or the value of the items being traded. These charges can be categorized by different cost factors, which will ultimately govern the behavior in how they are included in a total landed cost calculation. Once actual amounts are received, Charge Management records the new value for comparison with the earlier estimates and sends adjustments to backoffice applications.

2. Advanced Pricing for Charge Templates
When organizations try to obtain estimates for a particular charge, they can typically identify standard business rules for when these charges should apply. Oracle’s Landed Cost Management application allows users to enter lists of estimated charges and conditions as to when these charges should apply by using Advanced Pricing. This enables a template of charges to automatically be applied to a receipt. It removes the need for a charge reference spreadsheet or document often found in organizations dealing with complex supply chains and minimizes error prone steps of manually entering charges during a transaction. Once these estimated costs are applied by Advanced Pricing, users have the ability to verify and update them via Oracle Landed
Cost Management’s Charge Management functionality. Ultimately, Oracle Landed Cost Management uses these components to calculate the estimated landed cost.

3. Landed Cost Calculation
Most organizations struggle to find the “real” costs required to take a product to market, to source a product overseas, or to do business with a particular vendor or customer.
Knowing the total actual landed cost of goods provides powerful insight in today’s competitive global markets. When companies use this landed cost information strategically, they can control overall product margin and optimize profitability. Some companies can only estimate this landed cost at best, while others can calculate estimated or actual costs. Often times, this is done in a semi-automated fashion in different places, making it difficult to compare estimates with actuals.
The Oracle Landed Cost Management engine provides the ability to calculate the estimated landed cost based on charges manually assigned and automatically allocated based on the configuration in the charge management repository. It recalculates applicable taxes and can be configured to exclude recoverable tax amounts. It also calculates the actual landed costs by prorating the actual invoices and proportional taxes to obtain the variances between what was estimated and what was charged. Cost components summed in the calculation remain stored at the most granular level for detailed tracking of charge amounts while variances are updated to the appropriate accounts.

4. Product Cost Dashboard
Financial flows do not mirror physical supply chain transactional flows. Landed cost management helps to link these two flows together and provides visibility and traceability from one to the other. With Landed Cost Management’s dashboard pages, companies can see the real time accrual updates for a particular receipt or shipment.
They can validate the accuracy of a supplier’s estimate by comparing estimated and actual costs and can see the percentage of a particular cost component for a particular item. Additionally, users can make use of all the flexible Oracle and E-Business Suite tools in order to meet their own customized reporting requirements.

5. Tax Recovery
Many countries impose high tariffs on items as they pass through the supply chain. This can sometimes reach into the double digits. As a result, tax recoverability becomes extremely important when organizations are making sourcing decisions and automating inbound flows. Oracle Landed Cost Management factors in tax recoverable amounts in the landed cost calculation, so that estimated and actual landed cost calculations do not overstate the true tax costs.

6. Integration to EBS Supply Chain and Backoffice
Almost all organizations struggle to provide their backoffice systems visibility into estimates of accrued liabilities that are then updated with actual amounts when they become known. This is particularly the case when organizations have a large portion of their trade done across borders or have a complex supply chain. Oracle’s Landed Cost Management is integrated with Oracle E-Business Suite’s financial and supply chain applications to provide this visibility and make implementation straightforward. Oracle Landed Cost Management provides the estimated landed cost to E-Business Suite Inventory Receiving, which then automatically forwards it on to E-Business Suite Cost Management module. Once actual costs are obtained and shared with Accounts Payable, variances are effectively communicated to E-Business Suite Cost Management module.

6.1. Procurement Integration
Procurement Information is often the baseline information used to itemize expected shipment or receiving lines on which extended supply chain charges will be applied. Landed Cost Management provides visibility into E-Business Suite Procurement data in order to build expected shipments for charge application and subsequent landed cost estimation calculations. When manually entering expected shipments the reference information provided by Procurement saves time and decreases errors that might occur without automated access to this information. Once available in Landed Cost Management, expected values received from procurement such as quantity and price can be edited for estimated cost calculation purposes. Furthermore, all the necessary data is provided to help arrive at an accurate three way match once an
invoice for a PO line or charge is entered into Accounts Payable.

6.2. Receiving Integration
It is difficult to gain insight into charges associated with the acquisition of items through an extended supply chain. Often, organizations are not aware of them until an invoice is received. Companies need better visibility into these charges. Additionally, many regions require that all expenses be accounted for at an
item/product level upon receipt. In order to comply with these requirements and provide an accurate calculation of product related expenses, these extended costs need to be estimated and applied to an item at the time of receipt.
Oracle’s Landed Cost Management’s integration with EBS Inventory’s Receiving module enables Receiving to view LCM’s estimated shipments and receive against them. It further calls LCM for a total cost estimation calculation for all receipts whether they originate in LCM or in Receiving itself. These estimations are then forwarded to E-Business Suite Cost Management module in order to update inventory valuations and accounting.

6.3. Cost Management Integration
When organizations are able to estimate landed costs, they often do not communicate those estimates to their backoffice system. This is because they lack an automated method to update these estimates with actual values once they are received. This prevents them from fully utilizing the estimated information in their reporting and decision making processes.
After actual values are received and the true landed cost is calculated in Landed Cost Management, any variances between the actual and the estimate are determined.
Those variances are updated to E-Business Suite Cost Management module which in turn updates the proper accounts and valuation.

6.4. Accounts Payable Integration
Few Accounts Payable applications provide a mechanism to apply and match an unlimited number of charges to a particular procured item line or group of lines.
This means that accurate actual landed cost calculations might be difficult to automatically calculate. Additionally, this prevents tying an actual charge back to any record of an earlier estimated landed cost calculation.
Oracle Accounts Payable allows for unlimited numbers of charges to be entered and applied to procured line items and allows line items to be applied and associate to recovered line items. This information is forwarded to Landed Cost Management which in turn calculates the Actual Landed Cost. These values are compared with earlier estimates to determine if a variance should be communicated to Costing and ultimately to the General Ledger.

Posted in Accounts Payables, Landed Cost, Oracle E-Business Applications, Oracle Financial, Oracle Inventory, Oracle Purchasing | 1 Comment »

Oracle Apps Inventory (INV) KEY Tables

Posted by Mahmoud Elemam on May 29, 2010

Oracle Apps Inventory KEY Tables

MTL_SYSTEM_ITEMS_B

MTL_SYSTEM_ITEMS_B is the definition table for items. This table holds the definitions for inventory items, engineering items, and purchasing items. You can specify item–related information in fields such as: Bill of Material, Costing, Purchasing, Receiving, Inventory, Physical attributes, General Planning, MPS/MRP Planning, Lead times, Work in Process, Order Management, and Invoicing.

You can set up the item with multiple segments, since it is implemented as a flexfield. Use the standard ’System Items’ flexfield that is shipped with the product to configure your item flexfield. The flexfield code is MSTK. The primary key for an item is the INVENTORY_ITEM_ID and ORGANIZATION_ID. Therefore, the same item can be defined in more than one organization. Each item is initially defined in an item master organization. The user then assigns the item to other organizations that need to recognize this item; a row is inserted for each new organization the item is assigned to.

Many columns such as MTL_TRANSACTIONS_ENABLED_FLAG and BOM_ENABLED_FLAG correspond to item attributes defined in the MTL_ITEM_ATTRIBUTES table. The attributes that are available to the user depend on which Oracle applications are installed. The table MTL_ATTR_APPL_DEPENDENCIES maintains the relationshipsbetween item attributes and Oracle applications.

Two unit of measure columns are stored in MTL_SYSTEM_ITEMS table. PRIMARY_UOM_CODE is the 3–character unit that is used throughout Oracle Manufacturing. PRIMARY_UNIT_OF_MEASURE is the 25–character unit that is used throughout Oracle Purchasing.

Items now support multilingual description. MLS is implemented with a pair of tables: MTL_SYSTEM_ITEMS_B and MTL_SYSTEM_ITEMS_TL. Translations table (MTL_SYSTEM_ITEMS_TL) holds item descriptions in multiple languages. DESCRIPTION column in the base table (MTL_SYSTEM_ITEMS_B) is for backward compatibility and is maintained in the installation base language only. “

MTL_DEMAND

This table stores demand and reservation information used in Available To Promise, Planning and other Manufacturing functions. There are three major row types stored in the table: Summary Demand rows, Open Demand Rows, and Reservation Rows.

Summary Demand is direct demand for an item within an organization a particular date that originated from a particular source. For hard reservations there are several columns which further define what the reservation is for, and where it is being placed. Currently, four sources of demand are supported, Sales Order, Account, Account Alias, and User Defined transaction sources.

Five different types of demand, denoted by DEMAND_TYPE column, are used. These five types are Model, Option Class, Option Item, Configuration Item and Derived. Derived demand rows are inserted by BOM Demand exploder when demanded item has ATPable components.

Each Summary Demand row may be associated with one or more Reservation rows. Reservation may be placed against a particular inventory control (that is, specific subinventory, locator, revision and lot) against any sources (that is, Account Number, Account Alias, Sales Order or even User–Defined sources).

Each Summary Demand row may be associated with one or more detailed rows. The detailed rows consist of reservations and open demand. A reservation row represents a firm promise of a supply source. Currently, two types of reservation are supported, reservations to on–hand, and reservations to WIP jobs.

Each summary demand row may be associated with one and only one open demand row. Open Demand rows represent the un–reserved portion of the the Summary Demand.
MTL_CATEGORIES_B

MTL_CATEGORIES_B is the code combinations table for item categories. Items are grouped into categories within the context of a category set to provide flexible grouping schemes. The item category is a key flexfield with a flex code of MCAT. The flexfield structure identifier is also stored in this table.

MTL_CATEGORY_SETS_B

MTL_CATEGORY_SETS_B contains the entity definition for category sets. A category set is a categorization scheme for a group of items.

Items may be assigned to different categories in different category sets to represent the different groupings of items used for different purposes.
An item may be assigned to only one category within a category set, however. STRUCTURE_ID identifies the flexfield structure associated with the
category set. Only categories with the same flexfield structure may be grouped into a category set.

CONTROL_LEVEL defines whether the category set is controlled at the item or the item/organization level. When an item is assigned to an item level category set within the item master organization, the category set assignment is propagated to all other organizations to which the item is assigned. VALIDATE_FLAG defines whether a list of valid categories is used to validate category usage within the set. Validated category sets will not allow item assignment to the category set in categories that are not in a predefined list of valid categories. Category Sets now support multilingual category set name and description. MLS is implemented with a pair of tables: MTL_CATEGORY_SETS_B and MTL_CATEGORY_SETS_TL.

MTL_ITEM_CATEGORIES

MTL_ITEM_CATEGORIES stores the item assignments to categories within a category set. For each category assignment, this table stores the item, the category set, and the category. Items may be assigned to multiple categories and category sets but may be assigned to only one category in a given category set. This table may be populated through the Master Items and Organization Items windows. It can also be populated by performing item assignments when a category set is defined. It is also populated when an item is transferred from engineering to manufacturing.

MTL_ITEM_SUB_INVENTORIES

MTL_ITEM_SUB_INVENTORIES maintains a listing of subinventories assigned to an inventory or engineering item. These subinventories make up the list of valid subinventories when transacting this specific item and the user has specified (in the master window) that the item must use subinventories restricted to a pre–defined list.
RCV_TRANSACTIONS

It stores historical information about receiving transactions that you have performed. When you enter a receiving transaction and the receiving transaction processor processes your transaction, the transaction is recorded in this table. Once a row has been inserted into this table, it will never be updated. When you correct a transaction, the net transaction quantity is maintained in RCV_SUPPLY. The original transaction quantity does not get updated. You can only delete rows from this table using the Purge feature of Oracle Purchasing.

RCV_SHIPMENT_HEADERS and RCV_SHIPMENT_LINES

When a Ship Confirm is processed, one record is inserted in rcv_shipment_headers and one record is inserted in rcv_shipment_lines for each of the Sales Order Lines. The rcv_shipment_lines are linked to the one rcv_shipment_header record by shipment_header_id.

When a Shipment Line is received, the Receipt Number is populated in the rcv_shipment_headers record that was created for that Shipment. Since only one rcv_shipment_headers record is created for each Ship Confirm process and the Receipt Number is also on rcv_shipment_headers record, there can only be one Receipt Number for a specific Shipment.

For example:

1. Ship Confirm Sales Order Lines 1, 2, 3, 4, 5

a. The following records are created:

* One rcv_shipment_header record
* Five rcv_shipment_lines records

b. rcv_shipment_lines.shipment_header_id will be the same for all five records, which will also be the same value as rcv_shipment_header.shipment_header_id

2. Receive one Shipment Line:

* rcv_shipment_headers record will be updated with the Receipt Number

3. Subsequent Receiving transactions will reference the same rcv_shipment_header record (therefore, there can only be one Receipt Number).

Posted in Oracle E-Business Applications, Oracle Inventory | Leave a Comment »

Interview Questions on Inventory,Purchasing

Posted by Mahmoud Elemam on December 12, 2009

Questions:

1. What is an Organization & Location?
2. What are the KeyFlexFields in Oracle Inventory Module?
3. What are the Attributes of Item Category & System Items?
4. What are the KeyFlexFields in Oracle Purchasing & Oracle Payables?
5. What are the KeyFlexFields in Oracle HumanResources & Oracle Payroll?
6. How would you create an Employee (Module Name) Describe?
7. What is a Position Hierarchy? Is there any restriction to create that?
8. To whom we call as a Buyer? What are the Responsibilities?
9. How do you Setup an Employee as a User – Navigation?
10. How many Approval Groups we have? Describe?
11. Describe the Types of Requisition?
12. How many Status’s and Types For RFQ’s & Quotations Describe?
13. How many Types of Purchase Orders We Have?
14. What is a Receipt?
15. What is Catlog Rfq?
16. Give me online about Planned Po?
17. How can the manger view the Approval Documents Information?
18. Whether the manager can forward to Any other person? How?
19. Can u resend the document your subordinate how?
20. What is Po Summary?

Answers:

1. It is a Ware House Which you can Store the Items, And You can setup your business Organization Information Like Key Flexfilelds,Currency,Hr Information and starting time and end time. Location’s are like godown place, office place, production point.

2. System items,Item Categories,Account Alias,Sales Order,Item Catalog,Stock Locators

3. The classification of items are Category Like Hard ware and Software, where as the Systems are individual items like Cpu,Key Board.

4. No Flexfields, But the help of Inventory And Human Resources we can use

5. Job Flexfield,Position Flexfield,Grade Flexfiled,Costing,People Group Flexfield,Personal Analysis Flexfield.

6. If Human Resource is Installed Hr/Payroll, If Not I can create Employee using with Gl,Ap,Purchasing,Fixed Assets

7. It is a Grouping of Persons for Approving and Forwarding the Documents from one person to another person, there is no restriction.

8. The Employee is nothing a Buyer, who is responsible for Purchase of Goods or services.

9. Security—-User—-Define, System Administration Module

10. Document Total,Accounts,Items,Item Categories,Location

11. Purchase Requistion,Internal Requistion

12. In Process,Print,Active,Closed for Rfq’s In Process,Active,Closed for Quotation

13. Standard,Purchase Agreement,Blanket Po,Planned Po

14. To Register the Purchase orders/Po lines for shipment purpose

15. It contains Price breaks with different quantity levels

16. For a Agreement for long period for goods

17. Notifications Window

18. Yes, In the Notifications Window under the Forward to Push Button

19. Yes, In the Notifications Window under the Forward to Push Button

20. The Purchase Order Summay Information like total lines, and status.