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May 8, 2010

COGS Process for ATO/PTO Model in Oracle Applications

Recently  , actually not recently but quite some time back one of Reader asked  about how to recognize the COGS in past , I have suggested workaround by means of creation of database trigger ,and solution work   for him ( You can read about that at  Past Dated COGS  ) , lately he asked me question about the how Oracle Apps handle COGS for the line that we do ship but not INVOICE , like ATO/PTO etc.

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COGS applies to Shippable lines from Inventory and, REVENUE occurs on lines that are invoiced by AR. In the case of ATO and PTO, the lines that are shipped are not necessarily the same lines that are invoiced. Upon Revenue recognition of an invoicable line, AR will notify Costing.  Costing follows the below strategy in revenue/COGS matching for configured items (* items)

STRATEGY -
Revenue / COGS matching for configured items is achieved most logically by matching a shipped line (line with cost) to the Invoicable line that it most closely relates to.  If the shipped line is itself invoiced, then the revenue recognition schedule for that line should drive COGS recognition.  If the shipped line is not invoiced, COGS for that line should be driven by the revenue recognition for the nearest invoiced line that it rolls up to.
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5 comments:

  1. Hi!

    good blog ,thank you for sharing info.I have 1 question , Is there any API to get "nearest invoiced line that it rolls up to."

    Thanks

    ReplyDelete
  2. Hi eoracleapps,

    thanks for the reply.

    ReplyDelete
  3. Hi,

    Thanks for sharing ur experience. Can you plz mail across some good docs/ppt on Oracle Quoting,Order Management & Configurator covering following:
    1. Business needs / Challenges
    2. Solution/mapping in Oracle EBS
    3. Benefits realised

    Thanks

    ReplyDelete
  4. Hi Animsh

    What exactly is your requirements.
    There are tonnes of material on your requirenents at oracle.com. You are browse and download what ever you need.

    Thanks

    ReplyDelete
  5. Hi,

    Really very good information from you.

    Ton of Thanks!

    ReplyDelete