R12 COGS Accounting

Summary on R12 Deferred COGS Accounting

• The role of COGS workflow is not changed.
•  A new account called Deferred COGS account is introduced
• when the order shipped the entry will be                       Cr Inventory Material account                                                 Dr Deferred COGS Account  
• After revenue is recognized, the following programs need to be run to relieve deferred COGS value and debit actual COGS account.

Requests to Run

1. In  Inventory Responsibility run “Collect Revenue Recognition Information”
2. In  Inventory Responsibility run “Generate COGS Recognition Events”