0 Replies Latest reply on Aug 25, 2012 7:56 PM by 810541

    What is the Roles Of Bridging Account

      *What Are The Roles Of These Accounts Bridging, Non-Invoiced Sales Orders And Non-Invoiced Revenue in Periodic Account Assignments form? [ID 1335054.1]*

      The Expense account is there to accommodate European accounting practices.

      The Bridging account (as seen in WIP accounting classes) is used only in France.

      The bridging account (and possibly others) was included at the request of the Global Accounting Engine team on behalf of France in the setup form at design time; but it has never been used as it was decided that transfer To GL would remain manual for the moment. In other words, today PAC only generates distributions based on GAAP/Brazil accounting.

      In other words: In US accounting, when you put something in inventory it is accounted as an asset, in France it is accounted as an expense; so during a period you total all expenses and at the end of a period in order to do a fiscal Profit and Loss, you "convert" to assets by using a bridging account : you debit the inventory account and credit the bridging account. This is done by Product Nature: So you have a Bridging account for raw materials, for finished goods and semi-finished.

      The fields 'Non-invoiced Sales Orders' and 'Non-invoiced Revenue' was set up with a view to replacing the functionality (used in Europe) that is currently provided by the Global Accounting engine (AX). However, this has not yet been implemented in the apps - which currently support only US GAAP & Brazilian accounting as methods of generating distributions from PAC.

      User Guide
      2 – 72 Oracle Cost Management User’s Guide

      Bridging: This account is optional.
      You can also optionally enter an Analytical Invoice Price Variance, Analytic a l Purchase Mirror, Non–Invoiced Sales Order, Non–Invoiced Revenue, Analytical Revenue Mirror, Analytical Margins of Goods Sold, and Average Cost Variance account.

      Edited by: Deepkumar Sivanandan on Aug 25, 2012 11:56 PM