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    Charge Account Details

    Uploaded by

    Deepika Nathany
    The charge account cannot be modified for inventory items in a purchase order, as it must match the material valuation account of the inventory destination subinventory. For centralized procurement, if the procuring and destination organizations have a transaction flow defined between different operating units, the system will create destination charge and variance accounts to record transactions between the units. The charge account constructed depends on whether the item and subinventory are classified as an asset or expense.

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    Charge Account Details

    Uploaded by

    Deepika Nathany
    46 views1 page
    The charge account cannot be modified for inventory items in a purchase order, as it must match the material valuation account of the inventory destination subinventory. For centralized procurement, if the procuring and destination organizations have a transaction flow defined between different operating units, the system will create destination charge and variance accounts to record transactions between the units. The charge account constructed depends on whether the item and subinventory are classified as an asset or expense.

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    PO Charge account

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    The charge account cannot be modified for inventory items in a purchase order, as it must match the material valuation account of the inventory destination subinventory. For centralized procurement, if the procuring and destination organizations have a transaction flow defined between different operating units, the system will create destination charge and variance accounts to record transactions between the units. The charge account constructed depends on whether the item and subinventory are classified as an asset or expense.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    46 views1 page

    Charge Account Details

    Uploaded by

    Deepika Nathany
    The charge account cannot be modified for inventory items in a purchase order, as it must match the material valuation account of the inventory destination subinventory. For centralized procurement, if the procuring and destination organizations have a transaction flow defined between different operating units, the system will create destination charge and variance accounts to record transactions between the units. The charge account constructed depends on whether the item and subinventory are classified as an asset or expense.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Charge account details

    The charge account cannot be modified in the Inventory type PO.


    For inventory destination, Material valuation a/c defined for the organization alone should come as charge
    account to prevent users from charging some other account other than material valuation, system does not allow
    changing the account which is defaulted using account generator

    Charge Account is to be used as the account to be hit when the item is received.
    # If it is an inventory item, then the destination sub inventory's material valuation accounts need to be hit.

    Hence it is not allowed to modify the charge account for an inventory destination in a PR/PO.

    In other words, modifying the charge account makes sense if it is an expense destination item ... i.e. not delivered
    to a sub inventory, but to a person.

    Centralized Procurement:

    If you utilize the centralized procurement functionality, the Account Generator will also create two new accounts
    to record accounting transactions between theprocuring organization and the destination organization: the
    destination charge account and the destination variance account. These accounts will be created andused only
    when the destination organization is in a different operating unit than the Procuring organization, and there is a
    transaction flow defined between the twoorganizations. (Note that if the two operating units are in different sets
    of books, there must be a transaction flow defined.) For example: In the centralizedprocurement scenario a user
    may create a purchase order in one operating unit, but require shipment to a different operating unit. In this case,
    there will be anaccounting transaction (created at the time of receipt of goods) to record the transfer of ownership
    between the two organizations (operating units). If theseaccounts are not required they will be not be built

    For Inventory charge account construction, the Account Generator further distinguishes between asset and
    expense purchases based on the item andsubinventory that you provide for the distribution. If you select an
    expense item, the Account Generator disregards the subinventory and builds an expense chargeaccount. If you
    select an asset item, the Account Generator evaluates the subinventory to decide whether to build an expense or
    asset charge account.

    Additional Information:
    You classify a subinventory as expense or asset by selecting the Asset Subinventory check box in the Oracle
    Inventory Subinventorieswindow. You classify an item as expense or asset by selecting the Inventory Asset Value
    check box in the Costing section of the Master Item window. (Thiswindow is accessible through Inventory
    or Purchasing.

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