Journal Approval Process in R12

Prerequisite SETUPS:
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1. Enable journal approval in the primary  ledger:

GL Responsibility > Setups > Financials >  Accounting Setup Manager > Accounting Setups

Query with Ledger Name and click on "Update Accounting Options"
Click on "Update" of corresponding ledger and  then Click on "Ledger Options" and Enable Check Box "Enable Journal Approvals".

2. Enable Journal Approvals at Journal Source Level:

3. Setup Journal Approvals Limit for Employees.

Just for demo purpose i am using below limits,

Once Employee Stock, Ms. Pat enter journal, it will go approvals as per below limits.

4. Setup Profile Options:

Profile Name - Journals: Find Approver Method.

Go Up Management Chain: The journal batch moves up the approval hierarchy until it has  been  approved  by  an  approver  whose  authorization  limit  is  sufficient  to  allow approval. The journal batch must be approved by all intermediate approvers as well.

Go  Direct: The  journal  batch  is  sent  directly  to  the  first  approver  in  the  approval hierarchy  who  has  an  authorization  limit  high  enough  to  allow  approval.  The  preparer's direct manager receives a courtesy notice.

One Stop Then Go Direct: The journal batch is first sent to the preparer's manager for approval.  If  further  approvals  are  required, the  journal  batch  is  sent  directly  to  the  first approver  in  the  approval  hierarchy  who  has  an  authorization  limit  high  enough  to  allow approval.

Profile Option - Journals: Allow Preparer Approval  And Value - No

Process:

Now Create Journal and Approve Accordingly based on Approval Limit.

COGS and Deferred COGS In Oracle R12

The deferred COGS account is the new feature introduced in Release 12. The key fundamental behind the feature is that the COGS is now directly matched to the Revenue. In simple terms, this means, COGS for an order line will be recognized only if the revenue is recognized for that line making sure that the revenue and COGS are posted in the same month. Matching percentage is also taken care which ensures that revenue and cost are always in sync.

SETUP > Inventory Resp >  Setup > Organization > Parameters > Other Accounts

Here Enter Deferred COGS Account

STEP:
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1. Create Sales Order and do Pick Confirm
2. Complete Shipping Confirm Process and run interface trip stop Program.

 Below two Accounts Will hit.

Cr      > Inventory Valuation accoun
Dr      > Deferred COGS Accoun

Go To Inventory responsibility and Review the Accounts in Material Transactions form.

3. Run Workflow Background Process and AutoInvoice Master Program to Create Invoice in AR.

Now AR invoice Got Created, But Revenue not yet Recognized.

Go To AR Resp > Control > Accounting And Search with Sales Order Number.

Revenue Not Yet Recognized.

4. Recognize the revenue in AR.

NAV >  Accounts Receivables Resp > Control > Run "Revenue Recognition" Program.

After running the program, again check for Revenue.

5. Now we have to accept the Revenue.

Click on "Manage Revenue".

6. Run Below Set Of Concurrent Programs.

Record Order Management Transactions: records new sales order transaction activity such as shipments and RMA returns in Oracle Order Management.

Collect Revenue Recognition Information: determines the percentage of recognized or earned revenue related to invoiced sales order shipment lines in Oracle Receivables.

Generate COGS Recognition Events: creates and costs COGS recognition events for new sales order shipments/returns and changes in revenue recognition and credits for invoiced sales order shipment lines.

After Running ABove Programs, Verify "Material Transaction" Form. A non-physical transaction has been generated Transaction Type= COGS Recognition

Click on "Distributions" Button and verify Accounts.


Deffered COGS : Credit
COGS : Debit.