Oracle Apps Inventory Accounts: Inventory Accounts and their Description


Material:
An asset account that tracks material cost. For average costing, this account holds your inventory and intransit values. Once you perform transactions, you cannot change this account.

Material Overhead:  An asset account that tracks material overhead cost.

Resource:     An asset account that tracks resource cost.

Overhead:    An asset account that tracks resource and outside processing overheads.

Outside processing:     An asset account that tracks outside processing cost.

Expense:     The expense account used when tracking a non-asset item.

Sales:     The profit and loss (income statement) account that tracks the default revenue account.

Cost of Goods Sold:
 The profit and loss (income statement) account that tracks the default cost of goods sold account.

Purchase Price Variance:   The variance account used to record differences between purchase order price and standard cost. This account is not used with the average cost method.

Inventory A/P Accrual:  
The liability account that represents all inventory purchase order receipts not matched in Accounts Payable, such as the uninvoiced receipts account.

Invoice Price Variance:
The variance account used to record differences between purchase order price and invoice price. This account is used by Accounts Payable to record invoice price variance.

Encumbrance:     An expense account used to recognize the reservation of funds when a purchase order is approved.

Average Cost Variance:  
Under average costing with negative quantity balances, this account represents the inventory valuation error caused by issuing your inventory before your receipts.

Inter-Organization Transfer Accounts
You define default inter-organization transfer accounts in the Organization Parameters
window. These accounts are defaulted when you set up shipping information in the
Inter-Organization Shipping Networks window.

Transfer Credit
The default general ledger account used to collect transfer charges when this
organization is the shipping organization. This is usually an expense account.

Purchase Price Variance
The default general ledger account used to collect the purchase price variance for
inter-organization receipts into standard cost organizations. This is usually an expense
account.

Payable
The default general ledger account used as an inter-organization clearing account when
this organization is the receiving organization. This is usually a liability account.

Receivable
The default general ledger account used as an inter-organization clearing account when
this organization is the shipping organization. This is usually an asset account.

Intransit Inventory
The default general ledger account used to hold intransit inventory value. This is
usually an asset account. For average cost organizations, this account is the default

material account.


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