4 Replies Latest reply: Sep 14, 2013 10:58 AM by Dina Rotem RSS

    Project Manufacturing Accounting - RBCA

    GovindVenu

      Hi,

       

      Can any one help on the below question

       

      What will be accouting entry at the time of ship confirm when we using RBCA (Revenue Based Cost Accrual). We are using PJM and project expenditure have both expense and Inventory.

       

      Thanks

      venugovind

        • 1. Re: Project Manufacturing Accounting - RBCA
          GovindVenu

          Please share the accounting flow for PJM

          • 2. Re: Project Manufacturing Accounting - RBCA
            Dina Rotem

            Hi

             

            The answer depends on the way you based the PJM accounting, Is it done by Inventory or by Projects Auto Accounting?

            Inventory module accounts that trabsaction as credit of inventory valuation account and debit cost of goods sold account.

            However, the ship confirm transaction does not create any transaction that is collected into Oracle Project Costing, therefore, in case your accounting is based on AA, nothing will be interfaced to GL. That is since this type of transaction does not affect project's cost

             

            Dina

            • 3. Re: Project Manufacturing Accounting - RBCA
              GovindVenu

              Hi Dina,

               

              Our account is based on Inventory Module. Not using AA for PJM.

               

              As you mentioned Ship confirm transaction doest not create any transaction in projects.

              What should be the account during ship confirm. We dont want to hit the COGS. we want to use revenue based cost accrual

              All the expense transaction we planning to hit the Cost wip account and accrue at the time of revenue generation as per the RBCA in Project billing.

              I am not sure how to handle inventory transaction for the same projects.

               

              Thanks

              Govind

              • 4. Re: Project Manufacturing Accounting - RBCA
                Dina Rotem

                Hi

                 

                When you base your accounting on Inventory the system is generating accounting for ship confirm transaction, as well as, any other transaction that affect the on-hand inventory value.

                You might need to re consider the way you set up accounting.  In case you continue to base accounting on Inventory, try looking on the Accounting Generation client extension of the Cost Management. There you can develop the logic that some inventory transaction types will get different accounting when dealing with the projects, which need RBCA.

                 

                Dina