COGS Recognition and Concurrent Processes

The matching and synchronization of the earned and deferred components of sales order revenue and COGS is accomplished by running the following COGS recognition concurrent processes.

• Record Order Management Transactions
• Collect Revenue Recognition Information
• Generate COGS Recognition Events
  
  

Record Order Management Transactions

The Record Order Management Transactions concurrent process picks up and costs all uncosted sales order issue and RMA return transactions and creates a record for each new order line in the costing COGS recognition matching table.

This process is not mandatory.

If you don’t run this process, then the cost processor will select and cost the uncosted sales order issues and insert them in the COGS matching table. This process can be used if you need to process the COGS recognition transactions at shorter intervals than the cost processor.

Collect Revenue Recognition Information

The Collect Revenue Recognition Information concurrent process calls an Oracle Receivables API to retrieve the latest revenue recognition percentage of all invoiced sales order lines in Oracle receivables for a specific ledger and with activity dates within a user-specified date range.

This process must be run before the Generate COGS recognition Event concurrent process.

Generate COGS Recognition Events

The Generate COGS Recognition Events concurrent request compares the COGS recognition percentage for each sales order line and accounting period combination to the current earned revenue percentage.

When the compared percentages are different, the process raises a COGS recognition event and creates a COGS recognition transaction in Oracle Inventory that adjusts the ratio of earned and deferred COGS to match that of earned and deferred revenue.

You must run this process after completion of the Collect Revenue Recognition Information concurrent process.

---X---