Global (Center-Led) Procurement Flow

Accounting for Receive/Deliver Transactions

1) Set up Intercompany Relation:
Inventory, Vision Operation
/Setup/Organization/Intercompany Transaction Flows
Operating Unit:
Start = Vision Operations
End = Singapore Distribution Center
Type = Procuring
Nodes:
Seq# 1
From Operating Unit = Vision Operations
Organization = V1
To Operating Unit = Singapore Distribution Center

SELECT HEADER_ID,LINE_NUMBER,
FROM_ORG_ID,from_org_name,from_organization_code FROMCODE,
TO_ORG_ID,to_org_name,to_organization_code TOCODE
FROM mtl_transaction_flow_lines_v
WHERE (FROM_ORG_ID=204 and TO_ORG_ID = 229) order by line_number;
HEADER_ID LINE_NUMBER
FROM_ORG_ID FROM_ORG_NAME FROMCODE
TO_ORG_ID TO_ORG_NAME TOCODE
729
1
204 Vision Operations
V1
229 Singapore Distribution Center D1

Click Intercompay Relations

Customer = Vision
Number = 1021
Location = Singapore (OPS)
Transaction Type = Invoice-Intercompany
COGS account = 01-000-1110-0000-000
Supplier = Vision
Site = New York
Inventory Accrual Account = 02-000-1110-0000-000
Enpense Accrual Account = 02-000-1110-0000-000

FLOW_TYPE SHIP_ORGANIZATION_ID SELL_ORGANIZATION_ID

CUSTOMER_ID ADDRESS_ID
---------- -------------------- -------------------- ----------- ---------VENDOR_ID VENDOR_SITE_ID INTERCOMPANY_COGS_ACCOUNT_ID
---------- -------------- ---------------------------FREIGHT_CODE_COMBINATION_ID
INVENTORY_ACCRUAL_ACCOUNT_ID
--------------------------- ---------------------------EXPENSE_ACCRUAL_ACCOUNT_ID
-------------------------2
204
229
1021
1102
41
245
12831
16927
16927
INVENTORY_ACCRUAL_ACCOUNT_ID = 16927

2) Set up Receiving Options in Requestor Organization:

Purchasing, Vision Distributions (SNG)
/Setup/Organizations/Receiving Options
Receiving Inventory Account = 02-000-1410-0000-000
Clearing Account = 02-000-1411-0000-000

select organization_id, RECEIVING_ACCOUNT_ID,CLEARING_ACCOUNT_ID

from rcv_parameters where organization_id in (204, 229);
ORGANIZATION_ID RECEIVING_ACCOUNT_ID CLEARING_ACCOUNT_ID
--------------- -------------------- ------------------204
13401
31277
229
16101
107579
RECEIVING_ACCOUNT_ID = 16101

3) Set up Material Valuation Account in Requestor Organization:

Purchasing, Vision Distributions (SNG)
/Setup/Organizations/Organizations
Query out Organization = Singapore Distribution Center
Choose Inventory Organization/Inventory Information/Costing Information
Material Valuation Account = 02-000-1410-0000-000

select organization_id, MATERIAL_ACCOUNT,

PURCHASE_PRICE_VAR_ACCOUNT
from mtl_parameters
where organization_id = 229;
ORGANIZATION_ID MATERIAL_ACCOUNT
PURCHASE_PRICE_VAR_ACCOUNT
--------------- ---------------- -------------------------229
16101
16290
MATERIAL_ACCOUNT = 16101

4) Set up Purchase Price Variance Account in Requestor Organization:

Purchasing, Vision Distributions (SNG)
/Setup/Organizations/Organizations
Query out Organization = Singapore Distribution Center
Choose Inventory Organization/Inventory Information/Other Accounts
Purchase Price Variance = 02-550-5210-0000-000

select organization_id, MATERIAL_ACCOUNT,

PURCHASE_PRICE_VAR_ACCOUNT
from mtl_parameters
where organization_id = 229;
ORGANIZATION_ID MATERIAL_ACCOUNT
PURCHASE_PRICE_VAR_ACCOUNT
--------------- ---------------- -------------------------229
16101
16290
PURCHASE_PRICE_VAR_ACCOUNT = 16290

5) Set up Receiving Options in Purchasing Organization:

Purchasing, Vision Operations (USA)
/Setup/Organizations/Receiving Options
Receiving Inventory Account = 01-210-1620-0000-000
Clearing Account = 01-000-1410-0000-000

6) Create Requisitions in Requestor Operating Unit:

Purchasing, Vision Distributions (SNG)
/Requisitions/Requisitions
created a requisition# 361
ship to organization = D1
ship to location = Youga Dist Center

7) AutoCreate Purchase Order in Purchasing Operating Unit:

Purchasing, Vision Distributions (SNG)
/AutoCreate
query out requisition# 361..
click Find...check the requisition line...
click Automatic...
On the New Document screen...
choose Purchasing Org = Vision Operation
get message like "the purchase order # 6017 is created in Vision Operation" .

8) Approve the Purchase Order in Purchasing Operating Unit:

Purchasing, Vision Operation (USA)
/Purchase Orders/Purchase Orders
query out the po# 6017
at the shipment:
ship to org = D1
ship to location = Youga Dist Center
at the distribution:
PO accounts are generated from Purchasing org - Vision Operation
Destination accounts are generated from Requestor org - Vision Distribution
Approve the po.

9) Receive and Deliver the Purchase Order in Requestor Organization:

Purchasing, Vision Operation (USA)
/Receiving/Receipts
choose org = D1
po = 6017
did RECEIVE with qty = 1
receipt# 5010
10) View Accounting For Receive Transactions:

Purchasing, Vision Operation (USA)

/Receiving/Receiving Transaction Summary
query out po# 6017
Transactions/View Accounting For Receive Transactions:
Dr 02-000-1410-0000-000 ->Singapore Distribution Center/Receiving Inventory Account
Cr 02-000-1110-0000-000 ->Intercompany Inventory Accrual Account

select creation_date, code_combination_id, accounted_dr, accounted_cr

from rcv_receiving_sub_ledger
where reference1 = 'PO' and reference4 = '6017';
CREATION_DATE CODE_COMBINATION_ID ACCOUNTED_DR
ACCOUNTED_CR
--------------- ------------------- ------------ -----------12-FEB-08
16101
1.01
12-FEB-08
16927
1.01
Distribution Center/Receiving Inventory Account CCID = 16101
Intercompany Inventory Accrual Account CCID = 16927

11) View Accounting For Deliver transactions:

Inventory, Vision Distributions (SNG)
/Transactions/Material Transactions
Choose org = D1
Query out Item = AS54888
Click Distributions: (View Accounting For Deliver transactions)
Dr. 02-000-1410-0000-000->Inventory Valuation Account
Cr. 02-550-5210-0000-000->Purchase Price Variance account
Cr. 02-000-1410-0000-000->Singapore Distribution Center/Receiving Inventory Account

SELECT TRANSACTION_QUANTITY,TRANSACTION_UOM,
REFERENCE_ACCOUNT, organization_code,BASE_TRANSACTION_VALUE
FROM CST_INV_DISTRIBUTION_V WHERE organization_id = 229 and
transaction_id = '22576059';
TRANSACTION_QUANTITY TRA REFERENCE_ACCOUNT ORG
BASE_TRANSACTION_VALUE
-------------------- --- ----------------- --- ---------------------1 Ea
16101 D1
1188.75
1 Ea
16101 D1
-1.01
1 Ea
16290 D1
-1187.74
Inventory Valuation Account CCID = 16101
Purchase Price Variance account CCID = 16290
Singapore Distribution Center/Receiving Inventory Account CCID = 16101