Receipt Accounting

Oracle Cost Management
Receipt Accounting
Sreeni Devireddy
Product Management Director
Product Development, Cloud Applications
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Copyright © 2019, Oracle and/or its affiliates. All rights reserved. | Confidential – Oracle Internal/Restricted/Highly Restricted 3
Agenda
1 Procure to Pay
2 Accrue on Receipt
3 Accrual at Period End
4 Accounts Setup
Procure to Pay
Accrue on Receipt
Requisition Encumbrance (C)
Purchase Order Encumbrance (O)
Receipt Dr Receiving; Cr Accrual • Relieve Encumbrance

Receipt
Accounting Cost
Inspect Dr Inspection; Cr Receiving Management
Cost Put Away Dr Inventory; Cr Inspection

Accounting
Invoice Dr Accrual; Cr Liability
Payment Dr Liability; Cr Cash
Copyright © 2019, Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 5
Procure to Pay
Accrual at Period End
Requisition Encumbrance (C)
Purchase Order Encumbrance (O)
Receipt
Period End Dr Expense; Cr Accrual

Receipt
Accounting
Next Period Dr Accrual; Cr Expense
Invoice Dr Expense; Cr Liability • Relieve Encumbrance
Payment Dr Liability; Cr Cash
Copyright © 2019, Oracle and/or its affiliates. All rights reserved. |

Receipt Accounting
Landscape
Fusion
Payables
Invoice
Purchase Orders
Fusion
Fusion Cost
Purchasing Accounting
Fusion Fusion
Receiving
Receipts
Receipt GL (SLA)
Accounting
Landed Cost Fusion
Management Projects
Tax
Fusion
Tax
Copyright © 2019, Oracle and/or its affiliates. All rights reserved. |

Agenda
1 Procure to Pay
2 Accrue on Receipt
4 Accounts Setup
Accrue on Receipt Match Receipt Accruals
Use Case Scenario Accrual Reconciliation Report
Accrual CR 5000 Accrual DR 5000

[50 Q * 100 P] Raise Purchase Order TAB
Receive
Transfer Transactions from Receiving to Costing
Receiving Inspection DR 5000
Create Receipt Accounting Distributions Accrual CR 5000
Receipt
Create Accounting Accounting D
I
Deliver / Put Away I S
N T
Transfer Transactions from Inventory to Costing T
E
R
I
S
Create Cost Accounting Distributions R B L
F U
Create Accounting A T A Inventory DR 5000
C I Receiving Inspection CR 5000
E O
[50 Q * 100 P] Invoice N
S
Create Accounting Cost
Transfer Costs to Cost Management Accounting
Create Receipt Accounting Distributions
Accrual DR 5000
Liability CR 5000
* Actual / Average Costing

Accrue on Receipt
Accrual Clearing
• Discrepancies could be caused due to,

• Quantities differ between receipts and invoices
• Discrepancies in supplier billing
• Accounts Payable clerk matched an invoice to wrong purchase order or wrong purchase order
line
• Receiving clerk received against the wrong purchase order or wrong purchase order line
• Miscellaneous inventory or work in process transactions that do not belong to the accrual
accounts
Accrual Clearing Match Receipt Accruals
Use Case Scenario Accrual Reconciliation Report

Clear Accrual Balances & Match Receipt Accruals
Receive
Accrual Reconciliation Report
Receipt
Create Accounting Accounting D Receiving Inspection DR 5000
I Accrual CR 5000
N T Accrual DR 100
E
R
I
S Receiving Inspection CR 100
F U
E O
S Receiving Inspection DR 100
Create Accounting Cost Inventory CR 100
Accrual DR 4900
Create Cost Accounting Distributions Liability CR 4900
Create Accounting
Copyright © 2019, Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted
Accrual Clearing
Rules
Refer to Examples here
Accrual Clearing Rules: Attributes Explained

+ An Example (Doc ID 1507721.1)
End-to-End Cycle Match Receipt Accruals
Demo & Discussion Accrual Reconciliation Report

Clear Accrual Balances & Match Receipt Accruals
Receive
Accrual Reconciliation Report
Receipt
Create Accounting Accounting D Receiving Inspection DR 5000
I Accrual CR 5000
N T Accrual DR 100
E
R
I
S Receiving Inspection CR 100
F U
E O
S Receiving Inspection DR 100
Create Accounting Cost Inventory CR 100
Accrual DR 4900
Create Cost Accounting Distributions Liability CR 4900
Create Accounting
Agenda
1 Procure to Pay
2 Accrue on Receipt
4 Accounts Setup
Accrual at Period End
Process Flow
• No Accounting
PO
Auto Accrue
Receipt
Invoice
reverse Receipt
in next at period
Not
period end Booked • Debit Expense (Payables)
• Credit Supplier Payable
Invoice (Payables)
booked
After the Accounts Payable period is closed:

Create Un-invoiced Receipt Accruals
Create Accounting Process
Create Accrual Reversal Accounting process
Closing Receipt Accounting Period

https://www.youtube.com/embed/qtZO1oWnzWQ?rel=0&autoplay=1
Agenda
1 Procure to Pay
2 Accrue on Receipt
4 Accounts Setup
Accounts Setup
What is SLA?
Subledgers Subledger Accounting Engine General Ledger
GL Journals
Accounting
PO Receipt XLA_EVENTS Rules Accrual (3888-000-21445-3888) 500 USD Cr
Expense (3888-000-34523-3888) 500 USD Dr
Sources Subledger Journals GL Balances
ü Payables
on an event Run accounting Transfer to GL On Posting
ü Cost Management program or do online and Import
ü Assets accounting
ü Receivables
ü Receipt Accounting
ü Projects etc
PO Receipt
Drill Down
SLA Architecture
Journal Entry
SLA Architecture
Structure
SLA Architecture
EBS Vs Cloud
Accounts Setup for Cost Accounting
Reference
ü Is it Possible to Use Seeded Subledger Accounting Method for SLA Setup For Receipt Accounting
And Cost Accounting Without any Major Changes/Customizations? (Doc ID 2269248.1)
ü Subledger Accounting and Cost Management

https://cloudcustomerconnect.oracle.com/posts/8d55d0326f
New Features
19A – 19D
ü Calculate and Account for Nonrecoverable Tax on Intercompany Transfer (update 19B)
ü Period End Accrual with user defined Date Parameter (update 19B)
Refer: Release Readiness Page

Receipt Accounting

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Receipt Accounting

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Oracle Cost Management

Requisition Encumbrance (C)

Purchase Order Encumbrance (O)

Receipt Dr Receiving; Cr Accrual • Relieve Encumbrance

Cost Put Away Dr Inventory; Cr Inspection

Invoice Dr Accrual; Cr Liability

Payment Dr Liability; Cr Cash

Requisition Encumbrance (C)

Purchase Order Encumbrance (O)

Period End Dr Expense; Cr Accrual

Invoice Dr Expense; Cr Liability • Relieve Encumbrance

Payment Dr Liability; Cr Cash

Copyright © 2019, Oracle and/or its affiliates. All rights reserved. |

Copyright © 2019, Oracle and/or its affiliates. All rights reserved. |

Use Case Scenario Accrual Reconciliation Report

Accrual CR 5000 Accrual DR 5000

* Actual / Average Costing

• Discrepancies could be caused due to,

Use Case Scenario Accrual Reconciliation Report

Accrual CR 5000 Accrual DR 4900

Refer to Examples here

Accrual Clearing Rules: Attributes Explained

Demo & Discussion Accrual Reconciliation Report

Accrual CR 5000 Accrual DR 4900

After the Accounts Payable period is closed:

Closing Receipt Accounting Period

Sources Subledger Journals GL Balances

ü Subledger Accounting and Cost Management

Refer: Release Readiness Page

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