Landed Cost Management (LCM) is a new module to Oracle EBS R12. The LCM module helps companies record more accurate costs when purchasing inventory items. It accomplishes this by allowing you to add shipping, taxes, duties, insurance, and handling costs to an inventory item. This functionality is especially helpful in our global economy where your [...]
With the merging of inventory module from process manufacturing into the EBS inventory module, EBS inventory now has the ability to track item in two units of measures (UOM). The EBS inventory module has always been able to convert from the primary UOM to another UOM. But when you viewed your on-hand balance, you only saw [...]
When looking at the changes in R12, I noticed that Project Billing has new functionality around agreements – date effective funds consumption. This new functionality helps relieve an old problem when you have multiple agreements associated with one project and you want to generate an invoice for a specific agreement. How Project Billing Worked Before [...]
I wanted to share with you the R12 changes to item attributes and inventory organization parameters because I feel these configurations are at the heart of all Supply Chain modules. These configurations will determine how items are planned, purchased, built, costed, ordered, and shipped. The R12 changes to the item attributes and inventory organization parameters [...]
Looking at the R12 changes to Cost Management, I found that they fall into the following categories: accounting, integration with other modules, costing, reporting, accruals, period-end, and data architectural changes. Let’s start off with one of the biggest changes, the accounting for cost of goods sold (COGS). Accounting Cost of Goods Sold Recognition In R12, [...]
The Invoice to Payment process takes you from entering an invoice to paying the vendor. This process includes 6 steps: Entering or Importing the Supplier Invoice Optionally, matching the invoice to a Purchase Order or Receipt Validating the invoice Resolving automatic invoice holds Running the invoice approval process and approving invoices Creating and approving payment [...]
In this post, we’ll take a more detail look at Order Processing. The order process has 5 main steps. In these steps, you will enter an order, book the order, pick the order, ship the order, and then close the order. Since Order Management relies heavily on the workflow technology, I will show you the [...]
There are four high-level processes in the Order to Cash cycle. The first is processing the order, the second is processing the invoice, the third is recognizing the Cost of Goods (COGS), and the last is processing the cash receipt. Order Processing There are five steps to processing an order: 1. Enter an order 2. [...]
AP / AR Netting allows you to select AP and AR invoices and create payments and receipts against each other. The netting process creates a settlement batch that nets to zero. The netting process is driven by the agreement parameters and the batch parameters. The agreement parameters are established when you create the agreement. The [...]
This is my fifth post on the details of Subledger Event Classes in the Oracle E-Business Suite. In my previous post, I discussed how the relationship between the Subledger Event Class and the transactions in the Projects module. In this post, I’ll discuss the relationship of Purchasing Event Classes and the transactions in the Purchasing [...]
