The Geek Diary

Difference between Create Accounting – Cost Management and Create Accounting – Receiving

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Question: What is the difference between Create Accounting – Cost Management and Create Accounting – Receiving?

Create Accounting – Receiving

belongs to Purchase Module – Added to Cost Management Module – It processes transactions from Receiving Subledger.

  • “Create Accounting – Receiving” only accounts for Expense destination PO Receipt.
  • Create Accounting – Cost Management request creates accrual journal entries, accrual reversals, and multi-period journal entries.
  • The transaction will then be passed to GL via the Create Accounting – Cost Management program.

The process categories for this include:

  • Inventory
  • Manual
  • Receiving
  • Third Party Merge
  • Work in Process

Create Accounting – Cost Management

accounts for all transactions costed by EBS Cost Management, which includes – Expense destination PO Receipt. All Inventory transactions including inventory destination POs, WIP transactions, Accrual Write Off transactions.

Note:
Create Accounting – Receiving is a wrapper to include an additional parameter application_id (for PO in this case), because Costing is creating accounting for the whole SCM and different applications.

When you run Create Accounting – Cost Management, you are supposed to run it from a responsibility associated with application_id=707 (cost management). In this case, it will process all accounting events from Inventory, WIP, and Receiving (defined by their SLA event entity).

When you run Create Accounting – Receiving, it will only process the accounting events from Receiving.

“Create Accounting – Receiving” (from PO resp) is a subset of Create Accounting – Cost Management. The difference is, “Create Accounting – Cost Management” process all PO Receipt transactions, Material transactions and WIP transactions accounting, while “Create Accounting – Receiving” processes PO Receipt transactions only.

Create Accounting – Receiving is a wrapper to include an additional parameter application_id (for PO in this case), because Costing is creating accounting for the whole SCM and different applications.

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