Here is a quick reference of accounting events associated with a typical "Procure to Ship" Order fulfillment cycle in a
Discrete Manufacturing Organization using Average Costing. I've tried to compile key transactions and put it in a concise
way. Though this information is widely available in Oracle user guides as well as on several other sites, I use this concise
format for easy and quick reference and sharing the same with you all. I shall be sharing the same for standard costing
organization as well on The Oracle Manufacturing Blog shortly.
Event
PO Receiving for Inventory
Goods / Raw materials
PO Receiving for Fixed Assets
(Equipments / Machines /
Infrastructure items etc.)
Oracle Transaction
Value Basis
PO Receipt
Deliver to Inventory
PO Receiving
Inventory Valuation
AP Accrual
PO Receiving
PO Cost
PO Cost
PO Receipt
PO Receiving
AP Accrual
FA clearing (as specified
on item)
PO Receiving
PO Cost
AP Accrual
PO Cost
Deliver to Expense
PO Receiving
Expense Account (as
specified on item)
PO Receiving
PO Cost
PO Receipt
Deliver to Inventory
PO Receiving
WIP Valuation - OSP
AP Accrual
PO Receiving
PO Cost
PO Cost
Deliver to FA
PO Receiving for Expense
Items (Consumables / bulk
items)
PO Receipt
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PO Cost
Return to Receiving
Return to Supplier
PO Receiving
AP Accrual
Inventory Valuation
PO Receiving
PO Cost
PO Cost
Sub-inventory Transfer
Inventory Valuation
Inventory Valuation
Average Cost
Absorption Account
(specified on Material
Overhead)
Overhead Rate
Inventory Valuation
Average Cost
Average Cost
Material Overhead
Transaction
WIP Issue
Inventory Valuation
WIP Valuation Material
WIP return
Inventory Valuation
Resource Transaction
Overhead Transaction
Inventory Valuation
WIP Valuation
WIP Valuation
Inventory Valuation
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Inventory Valuation
WIP Valuation
WIP Valuation
Inventory Valuation
Job Closure
WIP Variance
WIP Valuation
Pick Release
Inventory Valuation
Inventory Valuation
Average Cost
Ship confirm
Deferred COGS
Inventory Valuation
WIP Valuation
COGS
Deferred COGS
Misc. Receipt
Misc. Issue
Inventory Valuation
Specified Account
Specified Account
Inventory Valuation
Average Cost
Accumulated Job
Cost for scrapped
assembly
In proportion of
Revenue recognized
in AR
specified cost else
Average Cost
Average Cost
RMA Receipt
RMA Return
Inventory Valuation
COGS, Deferred COGS
Assembly Scrapping
COGS Recognition subsequent
to Revenue recognition
Miscellaneous Issue / Receipt
transactions
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Average Cost
Average Cost
Direct Inter-Organization
Transfer (without intrasnit,
transfer charges)
Inter-Organization Transfer
(with In-transit) - FOB Receipt
Shipping
Inter-Organization
Receivables
Receiving
Inventory Valuation
(Receiving Org.)
Shipping
Receiving
Receiving
Inter-Organization Transfer
(with In-transit) - FOB
Shipment
Shipping
Shipping
Receiving
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In-transit Inventory
(sending Org)
Inter-Organization
Receivables (Sending
Org.)
Inventory Valuation
(Receiving Org.)
Inter-Organization
Receivables (Sending
Org.)
In-transit Inventory
(Receiving Org)
Inventory Valuation
(Receiving Org.)
Inventory Valuation
(sending org)
Inter-Organization
Payables (Receiving
Org.)
Average Cost
(sending Org)
Inventory Valuation
(sending org)
Average Cost
(sending Org)
In-transit Inventory
(Sending Org.)
Average Cost
(sending Org)
Inter-Organization
Payables (Receiving
Org.)
Average Cost
(sending Org)
Inventory Valuation
(sending org)
Inter-Organization
Payables (Receiving
Org.)
In-transit Inventory
(Receiving Org.)
Average Cost
(sending Org)
Average Cost
(sending Org)
Average Cost
(sending Org)
Average Cost
(sending Org)
Hope you found this Accounting reference quickie useful. Your suggestions and feedback are always welcome!
Regards,
Manu Singhal
Email: msinghal.iitk@gmail.com
The Oracle Manufacturing Blog
www.oraclemfgblog.wordpress.com