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  • Gaurav Paul
    • posted via email reply December 11, 2019
    • Permalink
    Very detailed explanation. Quite useful.
  • Srinivasa Raghavan

    The cost variance entry in a sales order issue happens in case there is a negative inventory situation. The sequence of events would be something on these lines:

    - When the sales order issue was done, there wasn't enough quantity. Since the cost profile setting allows negative inventory to be processed, the sales order issue would have been processed with the current cost, let's say the current perpetual average cost

    - Once a replenishment of material happens and the negative is flipped to positive on hand, the original entry would be reversed and the new cost would be used to restate the sales order issue

    - Any difference between the original cost and the cost of the replenishment would be posted as a cost variance.

    Hope this helps.


  • Yeshika
    • posted via email reply December 8, 2019
    • Permalink
    You can create a customized mapping set. But first you need to check whether "Item Type" and "Make or Buy Code" available as input sources to create customized mapping set.
    Check with Oracle support for similar sources if required.
  • Sachi Mohanty

    Thanks all for the response. Separate accounting method was setup by country. The error went away after assigning the proiper JERS to the accounting methid tied to seconddary ledger.

  • Krishna Ghantasala

    With Standard Costing, if there is a business need to expense some of the overheads from a Common Pool to a specific account based on Item/ Transaction you can define a Accounting Overhead Rule please. These rules when applied would not impact the inventory value or COGS but would absorb the overheads as specific expense please.


  • Argishti Zakharyan

    Thanks Krishna for your quick reply.

    We are using standard cost and is already being absorbed into the Inventory and COGS.



  • Krishna Ghantasala

    The Accounting Overhead Rules is required if you are using Average /Actual Cost method and there a need to absorb your expenses as overheads into the inventory cost, cost of goods sold.

    You can read more about this functionality here


  • Deepak Padhy

    Hi Sachi - In your secondary ledger the Error is related to mapping set "Inter Company Accrual" not able to provide the accounts. could you please verify this mapping set whether set up correctly or not.

    And regarding the transaction status showing as "Error" in the header whereas in "Journal entries" tab the distributions are showing accounted.
    This can happen because as i understand you have two ledgers. I believe "DE USGAAP EUR" is primary and "DE LOCAL EUR" is secondary. Hence a transaction if successfully accounted in one of the ledgers and failed to account in other Ledger then the status will be shown as Error. As shown in your attachment last screenshot, the trx status is showing error and for Ledger "DE USGAAP EUR" it has been accounted, could you check the same trx in other Ledger whether it has been accounted or not.



  • Srinivasa Raghavan


    Planning Cost Organization was obsoleted quite a few releases ago, I've logged a defect to fix the documentation. Thanks for pointing this out.




    Hi Pallavi, 

    I have done those things and its working now I am facing a challenge in running the receipt accounting process. the error is related to the SLA receipt accounting rules and mapping sets there any document available for this step of receipt accounting configuration

  • Pallavi V

    check this : Receipt Accounting Basic Functionality (Doc ID 2262518.1)

    Manage Common Options for Payables and Procurement -> Accrue Expense Items set it to "At receipt". On the item define the item as Expense type. Then on the PO it will default as "At receipt"

    Everything else is same for Receipt Accounting to happen for Expense Destination items.


  • Deepak Padhy

    Hi Niranjan - What error you are facing to accrue Expense item at Receipt ?




    Hi Yeshika ,


    I have done it I am stuck in mid of receipt accounting setups

  • Yeshika
    • posted via email reply December 3, 2019
    • Permalink
    You can enable Expense  Accrue at Receipt in Purchasing common options in Setup and Maintenance: Purchasing.
  • Krishna Ghantasala

    What you said is right Landed Cost Clearing account need to be balanced. There are two scenarios on how a landed cost charge is brought into the item cost.

    1. Landed Cost charge coming from Service PO, which is about estimating landed cost using a Purchase Order, and subsequently creating an invoice matching to the PO

    2. Landed cost is estimated directly in the LCM, and unmatched invoice is created in the Payables to settle the supplier of landed costs

    Your scenario, I guess referring to the point 2 above. In this case a unmatched invoice is created and paid, and the invoice line is enabled for landed cost.

    The accounting as shown in Payables for this Landed Cost Charge line is

    Debit; Item Expense  2173.55

    Credit: Liability                          2173.55

    As you are using the landed cost to absorb these costs into your cost/inventory, the expense charge need to be absorbed into the inventory cost.

    You have the following accounting for Landed Cost charge in Receipt Accounting and Cost Accounting:

    1] Landed Cost Adjustment: in Receipt Accounting on physical receipt.

        Debit: Receiving Inspection 21733.55

       Credit: Landed Cost Clearing  2173.55 (This is to be balanced with the Expense Account in AP, which would indicate you are moving the expense to be absorbed in Inventory)

    2] Acquisition Cost Adjustment in Cost Accounting on receipt delivery

       Debit: Inventory 2173.55

      Credit: Receiving Inspection  2173,55 (This is balanced with the Receiving Inspection in Receipt Accounting) 

    On final consolidation in GL, you should be seeing the following:

     Debit: Inventory -Source Costing - 2173,55

    Credit: Liability -Source AP -2173,55

    Hope this helps.