Oracle Apps Tutorial: Changes in R12.2 for Supply Chain Management (Part 1)

Unlike the other product families (Financials, Projects, HR), Supply Chain Management has been busy with enhancements in the R12.2 release.  Because Order Management has a lot of changes, I’m dividing my discussion into two posts.  This first post will cover the changes to Advance Pricing, Electronic Kanban (new product), Inventory, Sales Contracts, and Service Contracts.  […]


Oracle Apps Tutorial: Understanding Cost Elements, Cost Types, Cost Groups, and Costing Methods in Cost Management

There are four main Cost Management concepts that are important to costing.  They are Cost Elements, Cost Types, Cost Groups, and Costing Method. Cost elements divide your item’s cost into five main elements and into as many sub-elements as you want.  The five main cost elements are defined by Oracle and you can not change […]


Oracle Apps Tutorial: R12 Changes to the Cost Management Module (up to R12.2)

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, […]

Oracle Apps Tutorial: How to Reconcile Inventory Activity to the General Ledger

When reconciling Inventory to the General Ledger, we need to know how Inventory is integrated with the General Ledger and how Inventory calculates inventory value.  Inventory integrates with GL using cost elements and material distributions.  WIP integrates with GL using cost elements and WIP distributions.  Cost elements define the elemental level that Oracle tracks and […]

Oracle Apps Tutorial: How Cost Groups are used in WMS and Project Manufacturing

In this post, I will how cost groups are used in the Oracle Inventory, Warehouse Management (WMS), and Project Manufacturing modules.  When you setup an inventory organization, Oracle will assign a default cost group to your organization.  This cost group holds the inventory valuation accounts and for actual costing methods (like average, FIFO, and LIFO) […]

Oracle Apps Tutorial: Overview of the Order to Cash Cycle in Oracle R12

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.       […]

Oracle Apps Tutorial: How Subledger Accounting Event Classes Map to Inventory, Purchasing, and Cost Management Module Transactions

This is my third 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 Payables module.  In this post, I’ll discuss the relationship of Cost Management Event Classes and the transactions in the […]

Oracle Apps Tutorial: How to Process Transactions During Period-End Close

To efficiently and effectively perform a period-end close in Oracle, you need to know the flow of transactions and journal entries from each module.  To ensure all the transactions are processed and accounted for in the General Ledger, you will need to perform the following processes in order.  The list below encompasses the most common […]

Oracle Apps Tutorial: How to Adjust Average Cost with Invoice Price Variances (IPV)

If you want to get your inventory cost, and ultimately your cost of goods, to reflect the actual cost you paid for your items, then you will want to interface the Invoice Price Variance (IPV) from Oracle Payables to Oracle Inventory/Cost Management.  The ability to perform this update of inventory cost is only for inventory […]

Looking for something?

Use the form below to search the site:

Still not finding what you're looking for? Drop a comment on a post or contact us so we can take care of it!