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  • Order To Cash Accounting Made Easy Brijesh Bharat

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    6 views18 pages

    Order To Cash Accounting Made Easy Brijesh Bharat

    Uploaded by

    prakash_srikanth

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF or read online from Scribd
    Flag for inappropriate content
    of 18
    Oracle Order To Cash Accounting - Made Easy ‘Author — Brijesh Bharat, PMP | Introduction This white paper will provide 9 comprehensive view and understanding of accounting details for inventory and receivables transactions in an Order To Cash scenario. The presentation will caplure complete accounting details in every step of a standard Sales Order fe cycle. The explanation will be detailed by fulfling 8 standard Sales Order by booking, shipping, closing and AR Invoicing, This paper wil highlight the folowing: ‘+ Explain the difference between the Inventory Cost and Selling Price of an item ‘+ Accounting on the Inventory and Receivables sida ‘+ How to recognize Profit made on a Sale by Cost Profit Margin Analysis Report I, Businoss Background When it comes to selling, it helps to have as much information about the account distribulion as possible right from the invantory cost of a product to its billing revenua. Most enterprises want to track the cost of products and profit made by solling tho product. This plays a criteal role in the Profit and Loss Accounting to determine a company's overall worth. Management accounting and reporting based of product plays significant role to reduce ils cost and enhance ils revenue effectively. In Oracle E-Business suite, accounting segment values in the account distrioutons are based on master and transaction type set up. Following table ilustrates the logie of obtaining accounting segment values in an (Order To Cash business case: Accounting Source of Values Wodule Name ransaction Type | Account Type | Soures of Values, ‘Oracle Inventory | Shipment J Cost of Sales | lem or Order type ‘Recount Invoice/Credit or | Revenue ‘Auto accountingy Receivables Debit Mero transaction type (race Order To Cosh ~Made Easy Brij Bharat, PMP Page tof 18 Following table ilustrates Debit and Credit side of account in an Order To Gash business case: Debit/Credit Account on a Sale ON THE COST SIDE ‘ON THE REVENUE SIDE | (INCUR Cost) (REALIZE Revenue) + DR COGS (via Account + DR Receivables Generator) = GR Inv Valuation Account > GR Revenue Following table indicates various Order! Shipping functions and their results: Anatomy of various OM/ Shipping functions. Function ‘Ship Confirm Trip Stop (NV and OM Worktiow Background Process ‘Auto Invoice Result ‘Closes the delivery Updates the order ines to Shipped > Updates the Order ines to Closed | > Populate AR Interface Table ‘Genarato Invoice (race Order To Cosh ~Made Easy Brij Bharat, PMP Page 20f 18 Order To Cash Scenario with Cost and Revenue Accounting 4. An Item e.g. 510365 has 021-00000-30-0000-56 100-0000-0000000000- (00000-00000 GOGS string under an Inventory! Shipping Org - DMD. Source of Value for the COGS is assumed hare from the Inventory Item. (Oracle Order To Cash —Made Easy Bij Bharat, PME Page 3 of 18 2. Assuming 510365 has a unit cost of $20.00 in the Org \eeoie rege

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