This document discusses Oracle's Receipt Accounting and Cost Management features. It provides an overview of the procure-to-pay process with options for accruing expenses on receipt or at period end. It also reviews accounts setup, including what a subledger accounting (SLA) is and the architecture and structure of SLA. The agenda covers accrual processes, accounting setup, and includes a demonstration.

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Oracle Cost Management
Sreeni Devireddy
Product Management Director
Product Development, Cloud Applications
Receipt Accounting
Confidential – Oracle Internal/Restricted/Highly Restricted

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Safe Harbor Statement
The following is intended to outline our general product direction. It is intended for
information purposes only, and may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality, and should not be relied upon
in making purchasing decisions. The development, release, timing, and pricing of any
features or functionality described for Oracle’s products may change and remains at the
sole discretion of Oracle Corporation.
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Agenda
Procure to Pay
Accrue on Receipt
Accrual at Period End
Accounts Setup
1
2
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3
4

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Requisition
Purchase Order
Receipt
Inspect
Put Away
Encumbrance (C)
Encumbrance (O)
Dr Receiving; Cr Accrual
Dr Inspection; Cr Receiving
Dr Inventory/Material; Cr Inspection
Invoice Dr Accrual; Cr Liability
Payment Dr Liability; Cr Cash
• Liquidate Encumbrance
Receipt
Accounting
Cost
Accounting
Cost
Management
Procure to Pay
Accrue on Receipt – Inventory Item

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Procure to Pay
Accrual at Period End – Expense Item (Invoiced)
Requisition
Purchase Order
Encumbrance (C)
Encumbrance (O)
Invoice Dr Expense; Cr Liability
Payment Dr Liability; Cr Cash
• Liquidate Encumbrance
Receipt
Inspect
Put Away

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Procure to Pay
Accrual at Period End – Expense Item (Un-Invoiced)
Requisition
Purchase Order
Period End
Encumbrance (C)
Encumbrance (O)
Dr Expense; Cr Expense Accrual
Invoice Dr Expense; Cr Liability
Payment Dr Liability; Cr Cash
Receipt
Accounting
Next Period Dr Expense Accrual; Cr Expense
• Liquidate Encumbrance
Receipt

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Receipt Accounting
Landscape
Fusion
Purchasing
Fusion
Payables
Fusion
Receiving
Receipt
Accounting
Fusion
Tax
Invoice
Purchase Orders
Receipts
Tax
Fusion
Cost
Accounting
Fusion
GL (SLA)
Fusion
Projects
Landed Cost
Management

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Agenda
Procure to Pay
Accrue on Receipt
Accrual at Period End
Accounts Setup
1
2
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3
4

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

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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

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Raise Purchase Order TAB
Receive
Deliver / Put Away
Invoice
Receipt
Accounting
Cost
Accounting
Transfer Transactions from Receiving to Costing
Create Receipt Accounting Distributions
Create Accounting
Create Cost Accounting Distributions
Create Accounting
Create Accounting
Transfer Costs to Cost Management
Receiving Inspection DR 5000
Accrual CR 5000
Inventory DR 5000
Receiving Inspection CR 5000
Accrual DR 4900
Liability CR 4900
Accrual CR 5000 Accrual DR 4900
Match Receipt Accruals
Accrual Reconciliation Report
S
L
A
Transfer Transactions from Inventory to Costing
I
N
T
E
R
F
A
C
E
D
I
S
T
R
I
B
U
T
I
O
N
S
Create Receipt Accounting Distributions
Create Accounting
[50 Q * 100 P]
[49 Q * 100 P]
Create Cost Accounting Distributions
Accrual DR 100
Receiving Inspection CR 100
Receiving Inspection DR 100
Inventory CR 100
Clear Accrual Balances & Match Receipt Accruals
Accrual Reconciliation Report
Accrual CR 4900 Accrual DR 4900
* Actual / Average Costing
Accrual Clearing
Use Case Scenario
Oracle Confidential – Internal/Restricted/Highly Restricted

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Accrual Clearing
Rules
Refer to Examples here
Accrual Clearing Rules: Attributes Explained
+ An Example (Doc ID 1507721.1)
Oracle Confidential – Internal/Restricted/Highly Restricted

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Raise Purchase Order TAB
Receive
Deliver / Put Away
Invoice
Receipt
Accounting
Cost
Accounting
Transfer Transactions from Receiving to Costing
Create Receipt Accounting Distributions
Create Accounting
Create Cost Accounting Distributions
Create Accounting
Create Accounting
Transfer Costs to Cost Management
Receiving Inspection DR 5000
Accrual CR 5000
Inventory DR 5000
Receiving Inspection CR 5000
Accrual DR 4900
Liability CR 4900
Accrual CR 5000 Accrual DR 4900
Match Receipt Accruals
Accrual Reconciliation Report
S
L
A
Transfer Transactions from Inventory to Costing
I
N
T
E
R
F
A
C
E
D
I
S
T
R
I
B
U
T
I
O
N
S
Create Receipt Accounting Distributions
Create Accounting
[50 Q * 100 P]
[49 Q * 100 P]
Create Cost Accounting Distributions
Accrual DR 100
Receiving Inspection CR 100
Receiving Inspection DR 100
Inventory CR 100
Clear Accrual Balances & Match Receipt Accruals
Accrual Reconciliation Report
Accrual CR 4900 Accrual DR 4900
* Actual / Average Costing
End-to-End Cycle
Demo & Discussion
Oracle Confidential – Internal/Restricted/Highly Restricted

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Agenda
Procure to Pay
Accrue on Receipt
Accrual at Period End
Accounts Setup
1
2
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3
4

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Accrual at Period End
Process Flow
Oracle Confidential – Internal/Restricted/Highly Restricted
PO
Receipt
• No Accounting
Invoice
booked
• Debit Expense (Payables)
• Credit Supplier Payable
(Payables)
Invoice
Not
Booked
Accrue
Receipt
at period
end
Auto
reverse
in next
period
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

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Agenda
Procure to Pay
Accrue on Receipt
Accrual at Period End
Accounts Setup
1
2
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3
4

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Accounts Setup
What is SLA?
Oracle Confidential – Internal/Restricted/Highly Restricted 19
PO Receipt XLA_EVENTS
Accounting
Rules
Sources
Accrual (3888-000-21445-3888) 500 USD Cr
Expense (3888-000-34523-3888) 500 USD Dr
Subledger Accounting Engine
Subledgers General Ledger
GL Journals
GL Balances
on an event Run accounting
program or do online
accounting
Transfer to GL
and Import
On Posting
Subledger Journals
ü Payables
ü Cost Management
ü Assets
ü Receivables
ü Receipt Accounting
ü Projects etc
PO Receipt
Drill Down

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SLA Architecture
Journal Entry

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SLA Architecture
Structure
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SLA Architecture
EBS Vs Cloud

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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

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ü Exclude Invoice Cost Variances from Cost Management
ü Get Overhead Rates for Standard Costed Items using REST API
ü Use Primary Sales Person as additional Subledger Accounting Source
ü Enhanced Standard Costs Spreadsheet
ü Calculate and Account for Nonrecoverable Tax on Intercompany Transfer
ü Period End Accrual with user defined Date Parameter
Refer: Release Readiness Page
New Features
19A – 20B