In this Document Purpose Troubleshooting Steps 1] No Accounting for COGS Recognition Transaction 2] Subledger Period close Exception report

3] COGS Recognition Transaction with 0 quantity 4] RMA Accounting 5] Duplicate accounting 6] DCOGS account is not zero 7] COGS Revenue Matching Report References

Applies to:

Oracle Cost Management - Version 12.0.0 and later Information in this document applies to any platform.
Purpose

The following explains the problems encountered in Cost of Goods Sold (COGS) and Deferred Cost of Goods Sold ( DCOGS)
Troubleshooting Steps 1] No Accounting for COGS Recognition Transaction

Symptom:COGS Recognition Transaction does not have accounting in MTA table. (costed_flag is NULL) Explanation:If quantity or cost of the item is zero, then COGS Recognition transaction does not have any accounting. According to the standard functionality, When the transaction value is zero no accounting will be created. COGS recognition is like redistributing expense across DCOGS and COGS. If there is no expense to be distributed at all (zero cost), creating zero dummy accounting entries

Here refer cogs lines (i. has to apply datafix. Review Note 738529..1 for more detail . but if ct. check: Column = Unit_cost 2. Select * from cst_revenue_cogs_match_lines Where cogs_om_line_id=&om_line_id. So if the item is having zero cost then COGS journals will not be populated. Explanation:If COGS Recognition transaction has zero quantity or zero cost.e. MTA does not exists but XLA_events data exists. To get sales order line id use below query Select trx_source_line_id "om_line_id" from mtl_material_transactions Where transaction_id=&transaction_id. Select * from cst_cogs_events Where cogs_om_line_id=&om_line_id. has older version then ct..e. This issue is fixed in COGs code.among two expense accounts would be a waste and hurting performance unnecessarily as well. event_quantity. event_type = 3 ) quantity i. Use below queries for verification: 1. /* Use COGS Recognition or SO Issue transaction */ 2] Subledger Period close Exception report Symptom:Subledger Period close exception report shows unprocessed COGS recognition events.

If RMA is created after complete COGS Recognition then RMA hits COGS account. If RMA is created before COGS Recognition then RMA hits DCOGS account. Refer to Oracle Cost Manager User Guide . Explanation:This depends on when RMA is created i..Supported Business Scenarios . Partial COGS Recognition then RMA hits both COGS & DCOGs accounts based on COGs recognition percentage. apply latest patch on CSTRCMVB.pls file. Verify the data in CST_COGS_EVENTS table Select * from cst_cogs_events Where cogs_om_line_id= &om_line_id. Explanation:If RMA exists before COGS Recognition then COGS Recognition transaction quantity = Sales Order issue quantity .e.For root cause fix.Revenue and COGS Matching chapter .RMA quantity. 3] COGS Recognition Transaction with 0 quantity Symptom:Sales Order Line has non-zero quantity but COGS is showing zero quantity. before COGS Recognition or after COGS Recognition. Note:Event_type = 1 (Sales Order Issue) = 3 (COGs Recognition) = 2 & 6 (RMA) 4] RMA Accounting Symptom:RMA accounting hits COGS some times and hits DCOGS sometimes.

) INV DCOGS DCOGS balance will be cleared after RMA. . Queries select trx_source_line_id "rma_line_id" from mtl_material_transactions where transaction_id=&transaction_id.) INV COGS DCOGS balance will be cleared after COGS Recognition.Scenarios of DCOGS account: Case 1: Transaction Type Debit Credit ================= ===== Sales Order Issue DCOGS INV COGS Recognition COGS DCOGS DCOGS balance will be cleared after COGS Recognition. Case 2: Transaction Type Debit Credit ================= ===== Sales Order Issue DCOGS INV RMA(Before COGS Rec. /* Use RMA Receipt */ select reference_line_id "om_line_id" from oe_order_lines_all where line_id=&rma_line_id. select * from cst_cogs_events where cogs_om_line_id=&om_line_id. Case 3: Transaction Type Debit Credit ================= ===== Sales Order Issue DCOGS INV COGS Recognition COGS DCOGS RMA(After COGS Rec.

ln. QueriesSELECT 3/4*SUM(NVL(ln.organization_id = &org_id AND mmt.accounted_dr.mtl_material_transactions mmt .0)-NVL(ln.application_id = 707 AND xte.accounting_line_type = 36 AND mta.accounted_cr.application_id = 707 AND xte.transaction_id AND xe.entity_code = 'MTL_ACCOUNTING_EVENTS' AND NVL(xte.cost_element_id =1 GROUP BY mmt.transaction_id = mta.transaction_type_id = 10008 AND mmt. xla_transaction_entities_upg xte .0)) .'DD-MM-YYYY') AND to_date('&to_date'. COUNT(mta.'DD-MM-YYYY') + .transaction_id AND mta.accounting_class_code . 5] Duplicate accounting Symptom:Duplicate accounting for COGS Recognition transactions.ledger_id = &ledger_id AND xte.Note:If RMA is not referring to any Sales Order. Explanation:This happens when Cost manager and Generate COGS Recognition events programs run in parallel. has to do manual GL adjustments. ct. xla_events xe .inv_sub_ledger_id) .transaction_date BETWEEN to_date('&from_date'. apps.base_transaction_value) FROM apps. For old data.transaction_id HAVING COUNT(mta.inv_sub_ledger_id) > 1 ) list . Issue has been fixed and latest patch is recommended for root cause fix.99999 AND mmt. SUM(mta. xla_ae_headers hr .mtl_transaction_accounts mta WHERE mmt.application_id = 707 .entity_id AND hr. xla_ae_lines ln WHERE xte. -9999) = list. then RMA accounting hits only COGS account.transaction_id .entity_id = xe. ln.source_id_int_1.code_Combination_id FROM (SELECT mmt.

verify revenue recognition. Note:Accounting is ducplicated 2 times in MTA and 4 times in XLA tables. ln.event_id = xe. Explanation:Get the output of COGS queries and also output of COGS Revenue Matching Report.accounting_class_code .AND ln. If COGS event/transaction is not created.ae_header_id = ln. Also review <Doc ID 1103513. please check whether revenue information exists in CRRL table or not.code_Combination_id. If CRRL data does not exist. Take sample Sales Order/Sales Order Line. If COGS event/transaction exists but still having balance then check whether COGS is recognized fully or not.ledger_id = xte. do revenue recognition and then run Collect Revenue Recognition Information & Generate COGS Recognition Events programs. Also verify whether cogs event/transaction is costed or not .1> DUPLICATE COGS RECOGNITIONS TRANSACTIONS 6] DCOGS account is not zero Symptom:Amount exists in DCOGS.event_id AND hr.ae_header_id GROUP BY ln.application_id = 707 AND hr.ledger_id AND hr. If not done. Check whether COGS is not recognized.

pls 120.7] COGS Revenue Matching Report Symptom:a. c.63 or higher . RMA accounting does not have credit lines. b.C file version CSTRCMVB. Not displaying quantity correctly. Displaying rows even though cogs & revenue are matching. Explanation:Apply latest patch.1 = Patch 13948107:R12.45.BOM.BOM.A to update file to latest version CSTRCMVB.51 or higher 12. COGS Revenue Matching Report Performance issue.12000000.12000000. R12 = Patch 13437574:R12. d.37.pls 120.

Navigate to : Accounts Receivables>Control>Revenue Accounting>Enter reference number: SO (ie. Select the 'Include Logical Transactions' checkbox in the Find Material . These COGS recognition transactions adjust deferred and earned COGS in an amount that synchronizes the % of earned COGS to earned revenue on sales order shipment lines.SO Number)Manage Revenue>Schedule Revenue C) Run a set of concurrent processes to record sales order and revenue recognition transactions and to create and cost COGS recognition transactions.8. When querying for COGS Recognition Transactions : a. Record Order Management Transactions: records new sales order transaction activity such as shipments and RMA returns in Oracle Order Management. Recognize the revenue in AR > Navigate to : Accounts Receivables>Control>Run Revenue Recognition request B) After recognizing the revenue. Run Revenue Recognition Master Program and generate the AR revenue recognition Then the remaining steps: Record Order Management Transactions Collect Revenue Recognition Information Generate COGS Recognition Events ---------------------A) Once Invoice is created. 1. 4. 2. Generate COGS Recognition Events: creates and costs COGS recognition events for new sales order shipments/returns and changes in revenue recognition and credits for invoiced sales order shipment lines. Collect Revenue Recognition Information: determines the percentage of recognized or earned revenue related to invoiced sales order shipment lines in Oracle Receivables. the following steps need to be performed: Run these AR steps: Run autoinvoice and generate the invoice transaction. 3. Navigate to Inventory > Transactions > Material Transactions b. accept it. In order to recognize revenue for the Cost of Goods Sold and Deferred Cost of Goods Sold.

While on the COGS Recognition transaction line.1 . Distributions are shown for Deferred COGS and COGS.bmp (1.Transactions Form when running your query and the query will return 3 transaction types: 1) Sales Order Pick 2) Sales Order Issue 3) COGS Recognition c.Please ensure all the steps are performed and check to see whether COGS Recognition transactions are generated. If you forgot to run COGS Recognition processes and INV and GL periods are closed.23 MB) COGS Dataflow and Diagnostics [Video] [ID 1307906. select the Distributions button.1] In this Document Purpose In this Document: Troubleshooting Steps Goal .COGS Dataflow and Diagnostics [Video] Attachments  DCOGS Flowchart. While on the Sales Order Issue transaction line. select the Distributions button.Cost > View Transactions > Material Transactions -. the COGS Recognition would go to the next open period . Distributions are shown for Inventory Valuation and Deferred Cost of Goods Sold. d. References NOTE:1307906. .

COGS Data flow Note: 1. Schedule Revenue and Recognize the COGS. Video Recording for the COGS Workflow References Applies to: Oracle Cost Management . We have assumed that the Cost Manager has picked up all uncosted Sales order issues and costed them (costed_flag in .Version 12. Video Recording for the COGS Workflow References Troubleshooting Steps Goal    Create a Sales Order. COGS Data flow 2. In the above and below flow. COGS Data Flow 2. DIAGNOSTICS 3.Solution 1. Diagnostics 3. Understand the Dataflow and tables affected for better troubleshooting Use the diagnostics and understand the relevance of various columns and their values Solution 1. Purpose In this Document: Goal Solution 1.0 and later Information in this document applies to any platform.0.

After Generate COGS Recognition is run: 1.Invoice_Interface_Status_Code = 'Yes'. This process is not mandatory if the transactions are already costed. 2. Important columns affected: A. 4. 2.Account_Set_flag = 'N'. (ii) Cst_cogs_events. In cst_revenue_cogs_match_lines Table.Potentially_unmatched_flag = 'Y' 2.Cst_cogs_events.Event Type = '1'[Event Type '1' signifies Sales Order Issue]. 2. .Mmt_Transaction_id will be the Transaction Id in Mtl_Material_Transactions Table for Sales Order Issue Transaction.[Invoice_Interface_Status_Code 'Yes' signifies Standard Sales Order and Invoice_Interface_Status_Code 'Not_Eligible' signifies Ship Only Lines].Cst_revenue_recognition_lines. After Sales Order Issue: 1. then The Record Order Management Transactions concurrent program can be executed. If the Sales order issue transactions/ RMA Return transactions remain uncosted. Deferred_COGS_Acct_id and COGS_Acct_id.mtl_material_transactions should be NULL).Cst_cogs_events. After Collect Revenue Recognition Information is run: 1.Cst_cogs_events.Cst_revenue_recognition_lines. After Revenue Recognition and Revenue Accounting: RA_CUST_TRX_LINE_GL_DIST_ALL.Revenue_recognition_percent = '1' [Revenue Recognition percentage of 1 signifies 100%] D. Unit_cost and Original_shipped_Qty gets populated.costed = Mtl_Material_Transactions. which picks up these transactions and inserts rows in Cogs events and Cogs Revenue Matching Tables to enable remaining programs (Collect Revenue Recognition Information and Generate COGS Recognition) to complete. (i) Cst_cogs_events. Revenue recognition is not performed and Account_Set_flag 'N' signifies that Revenue recognition is run]. Note: Oe_order_lines_all.costed_flag will be NULL when the sales order transaction is costed 3. B. C. Cst_cogs_events.COGS_Percentage = '0'.Mmt_Transaction_id will be the Transaction Id in Mtl_Material_Transactions Table for COGS Recognition Transaction. [ Account_Set_flag 'Y' signifies.COGS_Percentage = '1'[COGS Percentage '1' signifies 100%].

Potentially_unmatched_flag = 'Null' . the following is accounting impact: Accounting Entries:COGS Recognition: COGS Account is Debited and DCOGS Account is Credited. Cst_revenue_recognition_lines. three lines will be populated. the following is accounting impact: Accounting Entries:Staging transactions:Inventory Account (Destination) is debited and Inventory Account (Source) is credited. In Mtl_transaction_accounts Table. 2. Execute COGSDIAG. B.After Generate COGS Recognition is run: 1.sql ---------------------------------------1. AR. Accounting Line Type '35' signifies 'COGS' in table mtl_transaction_accounts. DIAGNOSTICS COGSDIAG.Event Type = '3'[Event Type '3' signifies COGS Recognition].one line will be populated for COGS Recognition.Sales order issue. Accounting Impact: A. Accounting Line Type '1' and '36' in mtl_transaction_accounts signifies 'Inventory Valuation' and 'DCOGS' respectively. 2. 4.Cst_cogs_events. Inventory and Costing. Sales Order issue:- DCOGS Account is Debited and Inventory Account is Credited. In Mtl_transaction_accounts Table. 3.Sample Output .After Sales Order Issue: 1.3. staging (source) and Staging (Destination) respectively. In Mtl_material_transactions Table. The SQL returns rows for all tables related to COGS Recognition from OM.sql How to Use COGSDIAG. 2. View a Sample Output here .sql for any Sales Order you wish to troubleshoot using 'Run Script' command (or) run individual queries as per requirement. 2. In Mtl_material_transactions Table.

COGS/ Deferred COGS common problems Attachments      COGS Recognition (565.Revenue_Recognition.zip References NOTE:778.Sales_Order.COGS Recognition (03:37) You can also download the below Zip files if you are not able to view the videos/ video controls properly .COGS and DCOGS Workflow NOTE:1314335.zip .81 KB) COGS Diagnostics File (3.1 .02 KB) Revenue Recognition from AR (613.1 .69 KB) COGS Recognition zipfile (566. Video Recording for the COGS Workflow o Creation of Sales Order Video .COGS.3.67 KB) .Multimedia Content Reference NOTE:867912.55 KB) COGS_Workflow (90.zip .Creation of Sales Order (05:29) Revenue Recognition and Accounting o Video - Revenue Recognition (03:02)  COGS Recognition Video .1 .

Demo (764.    Revenue Recognition zipfile (614.47 KB) Sales Order zipfile (765.67 KB) Sample output for COGSDIAG.95 KB) Creation of Sales Order .sql for the SO (66488) in Video (530.95 KB) .

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