Basic objective of this whitepaper is
>Identifying a key setups to complete Demand planning to supply flow
>Identifying the role of advanced modules like ASCP to achieve better execution of Supplier scheduling process
>Basic flow of ASCP


Step 1: Item creation
Note: Item should be ‘Purchased’ and ‘Purchasable’ enabled. Ensure ‘planner’ is entered under general planning tab (At organization level) Ensure it’s a ‘Buy’ item. 
In the MPS/MRP Planning tab – the item should have a planning method
– MRP Planning (Or method of planning used at the Location)
– Create Supply

Step2: Create Blanket Purchase Order and Approve it

Step3: Create Approved Supplier List , Make sure Global parameter is set to Yes

Step 4:  Make sure ‘Planning schedule’ and ‘Shipping Schedule’ is enabled under planning tab
Step 5: Create Sourcing Rule and Assign it

 Step 6: Create Demand of Item (Demand can come from various sources , I have taken just one example where demand is entered in Master demand schedule

Step 7: Run ASCP Data Collection (From Advanced Supply Chain Planner)

Step 8: Create Plan (Optional if Plan already exists)

Step 9: Launch Plan

Step 10:  Viewing ASCP Plan result

Step 11: Execute Push Plan (From Advanced Supply Chain planner Responsibility)

Step 12: Create/Build supplier schedule and confirm it.
Responsibility : Supplier Scheduling

Generate Schedules and Confirm schedules.. Once schedule line is confirmed it will display in iSupplier

View Data in iSupplier Portal

iExpenses is basically an extension Oracle Payables. Employee and Contingent Worker expense reports become supplier invoices and get paid from Payables. You will need following responsibilties to set up Internet Expenses: Payables Manager, Internet Expenses Setup and Administration, System Administration, Application Developer, and AX Developer. If you are also planning on charging expense reports to projects, you will also need Project Billing Super User and General Ledger Super User responsibilities. You will also need access to Oracle Workflow Builder to customize the Expenses workflow and Project Expense Reports Account Generator.

Setups for IExpenses : 

1.Define MOAC
2.Define Job
3.Define Position.
4.Define Employee.
5.Define Financial Options.
6.Define Expenses Template.
7.Define Payable Options.  
8.Assign Cost Center Flexfiedl qualifier to Department segment or Costcenter segment.
9.Define Signing Limits.
10.Assign Profile Option to IExpenses Responsibility.

 1.Define MOAC – See this article
  • Define Responsibilities for GL, AP,PO,HRMS,IEXPENSES
  • Define Business Group.
  • Define Ledger.
  • Define Operating Unit.
  • Define Security Profile.
  • Run Security List Maintenance Program. 
  • Assign Security Profile to Responsibilities. 
  • Run Replicate Seed Data Program.  

2.Define Job
Navigation: HRMS –> Work structures –> Job –> Description.
Click on New button. 

Enter the Job Name and Code.

 3.Define Position.
Click on New button. 

Enter Position number and name ,type, Organization,job,and Status of the position.


Note: If you want create more position please follow same as above procedure.

4.Define Employee.

Navigation: HRMS –> People –> Enter and Maintain.

Click on New. 

 Enter Employee Last name,gender,action and birth date.

Save and click on Assignments. 

Enter HR Organization name,job name and Position name.


Click left lov button and select the purchase order information.

 Enter the primary ledger name and default expenses account.


5.Define Financial Options.

Use the Financials Options window to define the options and defaults that you use for your Oracle Financial Application(s). Values you enter in this window are shared by Oracle Payables, Oracle Purchasing, and Oracle Assets. You can define defaults in this window to simplify supplier entry, requisition entry, purchase order entry, invoice entry, and automatic payments. Depending on your application, you may not be required to enter all fields.
Although you only need to define these options and defaults once, you can update them at any time. If you change an option and it is used as a default value elsewhere in the system, it will only be used as a default for subsequent transactions. For example, if you change the Payment Terms from Immediate to Net 30, Net 30 will be used as a default for any new suppliers you enter, but the change will not affect the Payment Terms of existing suppliers.

Navigation: Payables –> Setup –> Options –> Financial.

 Click on New button.

Accounting Tab:
You are required to enter defaults for the Accounting Financials Options in the Accounting region. 

Accounts Like:
Liability, Prepayment, Discount Taken.  

Supplier-Purchasing Tab:
If you do not also have Oracle Purchasing installed, you do not need to enter defaults in the Supplier- Purchasing region.

 Encumbrance Tab:
If you do not use encumbrance accounting or budgetary control, you do not need to enter defaults in the Encumbrance region. 

Tax Tab:

If your enterprise does not need to record a VAT registration number, you don’t need to enter defaults in the Tax region.

Human Resources Tab:
If you do not have Oracle Human Resources installed, you are not required to enter defaults in the Human Resources region.


 6.Define Expenses Template.
Navigation: Payables –> Setup –> Invoice –> Expenses Report Templates.

Enter operating unit name,template name and enable the enable for internet expenses. 
And finally enter your expenses.


7.Define Payable Options.  
Navigation: Payables –> Setup –> Options –> Payable Options.

Click on Find. 

Click on Expense Report Tab. 

Default Template. The default expense report template that you want to use in the Payables Expense Reports window. You can override this value in the Expense Reports window. A default expense report template appears in the Expense Reports window only if the expense report template is active.

Apply Advances. Default value for the Apply Advances option in the Expense Reports window in Payables. If you enable this option, Payables applies advances to employee expense reports if the employee has any outstanding, available advances. You can override this default during expense report entry.
If you use Internet Expenses and you enable this option, then Expense Report Export applies all outstanding, available advances, starting with the oldest, up to the amount of the Internet expense report.

Automatically Create Employee as Supplier. If you enable this option, when you import Payables expense reports, Payables automatically creates a supplier for any expense report where an employee does not already exist as a supplier. If the supplier site you are paying (HOME or OFFICE) does not yet exist, Payables adds the supplier site to an existing supplier. Payables creates a HOME or OFFICE supplier site with the appropriate address, depending on where you are paying the expense report. The Home address is from the PER_ADDRESSES table, and the Office address is from the HR_LOCATIONS table. Payables creates suppliers based on the defaults you select in this region and employee information from the Enter Person window. You can review suppliers and adjust any defaults in the Suppliers window.
If you do not enable this option, enter an employee as a supplier in the Suppliers window and link the Employee Name/Number to the supplier before you use Expense Report Export. Payables cannot export expense reports without corresponding suppliers, and lists them on Export Results page.
Payment Terms. Payment terms you want to assign to any suppliers that you create from employees during Expense Report Export.

Suggestion: Define and assign immediate payment terms for your employee suppliers.

Pay Group. Pay Group you want to assign to any suppliers that you create from employees during Expense Report Export. You can define additional values for Pay Group in the Purchasing Lookups window.
Payment Priority. Payment priority you want to assign to any suppliers that you create from employees during Expense Report Export. A number, between 1 (high) and 99 (low), which represents the priority of payment for a supplier.

Hold Unmatched Expense Reports. This option defaults to the Hold Unmatched Invoices option for the supplier and supplier site for any suppliers Payables creates during Expense Report Export.
When Hold Unmatched Invoices for a supplier site is enabled, Payables requires that you match each invoice for the supplier site to either a purchase order or receipt. If you enable this option for a site, then Payables applies a Matching Required hold to an invoice if it has Item type distributions that are not matched to a purchase order or receipt. Payables applies the hold to the invoice during Invoice Validation. You cannot pay the invoice until you release the hold. You can release this hold by matching the invoice to a purchase order or receipt and resubmitting Invoice Validation, or you can manually release the hold in the Holds tab of the Invoice Workbench. Payables will not apply a hold if the sum of the invoice distributions by accounting code combination is zero.

 8.Assign Cost Center Flexfiedl qualifier to Department segment or Costcenter segment. 

Navigation: Payables –> Setup –> Flexfield –> Key –> Segments.

Query your COA

Un Freeze Flexfield Definition and click on segments.

 select Cost Center segment and then click on the Flexfield Qualifiers.

Enable cost center segment. 

 9.Define Signing Limits.
Navigation: Payables –> Employees –> Signing Limits.

10.Assign Profile Option to iExpenses Responsibility.

Navigation: System Administrator –> Profile –> Systems.

Please set the following Profile options in Site level as well as Responsibility level.   

The deferred COGS of goods account is the new feature introduced in Release 12. The basic fundamental behind the enhancement is that the COGS is now directly matched to the Revenue. The same was not possible till now.

Prior to this enhancement, the value of goods shipped from inventory were expensed to COGS upon ship confirm, despite the fact that revenue may not yet have been earned on that shipment. With this enhancement, the value of goods shipped from inventory will be put in a Deferred COGS account. As percentages of Revenue are recognized, a matching percentage of the value of goods shipped from inventory will be moved from the Deferred COGS account to the COGS account, thus synchronizing
the recognition of revenue and COGS in accordance with the recommendations of generally accepted accounting principles.

The Matching Principle is a fundamental accounting directive that mandates that revenue and its associated cost of goods sold must be recognized in the same accounting period. This enhancement will automate the matching of Cost of Goods Sold (COGS) for a sales order line to the revenue that is billed for that sales order line.

The deferral of COGS applies to sales orders of both non-configurable and configurable items (Pick-To-Order and Assemble-To-Order). It applies to sales orders from the customer facing operating units in the case of drop shipments when the new accounting flow introduced in 11.5.10 is used. And finally, it also applies to RMAs that references a sales order whose COGS was deferred. Such RMAs will be accounted using the original sales order cost in such a way that it will maintain the latest known COGS recognition percentage. If RMAs are tied to a sales order, RMAs will be accounted for such that the distribution of credits between deferred COGS and actual COGS will maintain the existing proportion that Costing is aware of.  If RMAs are not tied to a sales order, there is no deferred COGS.

To set the deferred COGS account.

Inventory — Setup — Organization — Parameters — Other Accounts
A new account is added which is referred as the Deferred COGS accounts. 

Please note that when upgrading from a pre R12 version the DEFERRED_COGS_ACCOUNT will be populated if it is null with the cost_of_goods_sold_account on the organization parameter. This can then be changed accordingly if a different account is required.


Release 12 : 
When a Sales order is shipped the following accounting takes place:

Inventory Valuation Account : Credit.
                   Deferred COGS account : Debit

Once the revenue is recognised, you would need to decide the percentage you wish to recognize the Revenue. A COGS recognition transaction will be created to reflect a change in the revenue recognition percentage for a sales order line.

The steps to generate such transactions are as follows:
1. Run the Collect Revenue Recognition Information program. This program will collect the change in revenue recognition percentage based on AR events within the user specified date range.
2. Run the Generate COGS Recognition Events. This program will create the COGS recognition transaction for each sales order line where there is a mismatch between the latest revenue recognition percentage and the current COGS recognition percentage.

Note that users can choose how often they want to create the COGS Recognition Events.

Navigation to run the COGS recognition request :
– Cost > COGS Recognition > Collect Revenue Recognition Information
– Cost > COGS Recognition > Generate COGS Recognition Events
– Cost > View Transactions > Material Transactions

The distribution for the COGS Recognition transaction associated with the Sales Order transaction now would be as follows:

       Deferred COGS : Debit revenue percentage
       COGS               : Credit (Actual revenue percentage )

Thus, essentially the recognized COGS balance is to move the value from Deferred COGS to COGS.

This particular COGS recognition transaction actually correspond to a revenue recognition percentage change.

You can view the transactions as :
– Cost > View Transactions > Material Transactions > Distributions

A new COGS Revenue Matching Report shows the revenue and COGS information of sales order that fall within the user specified date range by sales order line

SIMPLER TERMS ( Table level details ) : 
Once the whole cycle is complete we will have 2 transactions lines in mtl_material_transactions.

1. Sales Order
2. COGS Recognition transaction

Accounting will be in mtl_transaction_accounts and the Subledger accounting tables as follows:

Transaction 1:
Inventory Valuation Account : Credit. (item_cost)
             Deferred COGS account : Debit (item_cost) 

Transaction 2:
Deferred COGS : Credit (Actual revenue percentage)
              COGS : Debit (Actual revenue percentage )