This section shows accounting entries for average costing order management and shipping transactions.
Note: The following accounts in average costing order management/shipping execution transactions are the default accounts when average costing is used. If Subledger Accounting (SLA) is enabled and SLA rules are customized, then the default accounts are not used.
Ship material on a sales order using Oracle Order Shipping Execution. The accounting entries for sales order shipments are as follows:
| Account | Debit | Credit |
|---|---|---|
| Deferred Cost of Goods Sold account @ current average cost | XX | - |
| Organization Valuation accounts @ current average cost | - | XX |
Attention: You do not create any accounting information when you ship from an expense subinventory or ship an expense inventory item.
See: Overview of Ship Confirm.
You can receive items back from a customer using the RMA (return material authorization) Receipts window. There is no variance in average costing for RMA receipts. Non-referenced RMA's occur at the existing average cost (cost-derived). The accounting entries for an RMA receipt are as follows:
| Account | Debit | Credit |
|---|---|---|
| Organization Valuation accounts @ current average cost | XX | - |
| Cost of Goods Sold account @ current average cost | - | XX |
| Deferred Cost of Goods Sold account @ current average cost | - | XX |
Use the same account as the original cost of goods sold transaction.
Attention: You do not create any accounting entries for a return to an expense subinventory or return for an expense inventory item.
See: Return Material Authorizations.
You can return items received into inventory through an RMA back to the customer using RMA Returns window. For example, you can send back - "return" - an item that was returned by the customer to you for repair.
This transaction reverses an RMA receipt. It also mimics a sales order shipment and updates the same accounts as a sales order shipment.
The accounting entries for an RMA return are as follows:
| Account | Debit | Credit |
|---|---|---|
| Cost of Goods Sold account @ current average cost | XX | - |
| Deferred Cost of Goods Sold account @ current average cost | XX | - |
| Organization Valuation accounts @ current average cost | - | XX |
Attention: You do not create any accounting entries when you return a customer RMA from an expense subinventory or for an expense inventory item.