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Cogs Dcogs PDF
Cogs Dcogs PDF
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:
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
among two expense accounts would be a waste and hurting performance unnecessarily
as well.
So if the item is having zero cost then COGS journals will not be populated.
Use below queries for verification:
1.
Select *
from cst_revenue_cogs_match_lines
Where cogs_om_line_id=&om_line_id;
check: Column = Unit_cost
2.
Select *
from cst_cogs_events
Where cogs_om_line_id=&om_line_id;
Symptom:Subledger Period close exception report shows unprocessed COGS recognition events.
Explanation:If COGS Recognition transaction has zero quantity or zero cost, MTA does not exists but
XLA_events data exists.
This issue is fixed in COGs code, but if ct. has older version then ct. has to apply
datafix.
Review Note 738529.1 for more detail
Symptom:Sales Order Line has non-zero quantity but COGS is showing zero quantity.
Explanation:If RMA exists before COGS Recognition then
COGS Recognition transaction quantity = Sales Order issue quantity - RMA quantity.
Verify the data in CST_COGS_EVENTS table
Select *
from cst_cogs_events
Where cogs_om_line_id= &om_line_id;
Symptom:RMA accounting hits COGS some times and hits DCOGS sometimes.
Explanation:This depends on when RMA is created i.e., before COGS Recognition or
after COGS Recognition.
If RMA is created before COGS Recognition then RMA hits DCOGS account.
If RMA is created after complete COGS Recognition then RMA hits COGS account.
Partial COGS Recognition then RMA hits both COGS & DCOGs accounts based on COGs
recognition percentage.
Refer to
Oracle Cost Manager User Guide - Revenue and COGS Matching chapter - Supported
Business Scenarios
Queries
select trx_source_line_id "rma_line_id"
from mtl_material_transactions
where transaction_id=&transaction_id;
Note:If RMA is not referring to any Sales Order, then RMA accounting hits only COGS
account.
5] Duplicate accounting
8. In order to recognize revenue for the Cost of Goods Sold and Deferred Cost of Goods
Sold, the following steps need to be performed:
Run these AR steps:
Run autoinvoice and generate the invoice transaction.
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,
Recognize the revenue in AR >
Navigate to : Accounts Receivables>Control>Run Revenue Recognition request
B) After recognizing the revenue, accept it.
Navigate to : Accounts Receivables>Control>Revenue Accounting>Enter reference
number: SO (ie.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.
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.
1. Record Order Management Transactions: records new sales order transaction
activity such as shipments and RMA returns in Oracle Order Management.
2. Collect Revenue Recognition Information: determines the percentage of recognized
or earned revenue related to invoiced sales order shipment lines
in Oracle Receivables.
3. 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.
4. When querying for COGS Recognition Transactions :
a. Navigate to Inventory > Transactions > Material Transactions
b. Select the 'Include Logical Transactions' checkbox in the Find Material
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. While on the Sales Order Issue transaction line, select the Distributions
button. Distributions are shown for Inventory Valuation and Deferred Cost of Goods
Sold.
d. While on the COGS Recognition transaction line, select the Distributions
button. Distributions are shown for Deferred COGS and COGS. - Cost > View
Transactions > Material Transactions
-- 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, the COGS Recognition would go to the
next open period .
References
In this Document
Purpose
In this Document:
Troubleshooting Steps
Goal
Solution
1. COGS Data flow
2. DIAGNOSTICS
3. Video Recording for the COGS Workflow
References
Applies to:
Goal
Solution
Solution
1. COGS Data flow
Note:
1. In the above and below flow, We have assumed that the Cost Manager has picked
up all uncosted Sales order issues and costed them (costed_flag in
COGSDIAG.sql
How to Use COGSDIAG.sql
---------------------------------------1. Execute COGSDIAG.sql for any Sales Order you wish to troubleshoot using 'Run Script'
command (or) run individual queries as per requirement.
2. The SQL returns rows for all tables related to COGS Recognition from OM, AR, Inventory
and Costing.
3. View a Sample Output here - Sample Output
Video -
COGS Recognition
Video - COGS Recognition (03:37)
You can also download the below Zip files if you are not able to view the videos/ video
controls properly
- Sales_Order.zip
- Revenue_Recognition.zip
- COGS.zip
References
Attachments
Sample output for COGSDIAG.sql for the SO (66488) in Video (530.95 KB)