To define other accounts parameters:

1. Navigate to the Organization Parameters window.

   Note: When you set up accounts, the primary ledger restricts the legal entity and operating unit.

2. Click the Other Accounts tab.

3. Enter the data for receiving accounts:

   Field Name	Description
   Purchase Price Variance	Enter a general ledger account to accumulate purchase price variance for this organization. The variance, which is the difference between the purchase order cost and an item's standard cost, is recorded when you receive an item in inventory. The purchase price variance is calculated as: PPV = (PO unit price -standard unit cost) quantity received Purchase price variance is not used for average costing.
   Invoice Price Variance	Enter a general ledger account to accumulate Invoice Price Variance for this organization. This is usually an expense account. Invoice price variance is the difference between the purchase order price for an inventory item and the actual invoice price multiplied by the quantity invoiced. Oracle Inventory passes this account to Oracle Purchasing when the requisition or purchase order is created. When Oracle Payables matches and approves the invoice, Oracle Payables uses the invoice price variance account from the purchase order to record invoice price variance entries. In addition, if you have exchange rate variances, Oracle Payables also records invoice price variance for exchange rate gains and losses.
   Inventory AP Accrual	Enter a general ledger account to accumulate Inventory Accounts Payable Accrual for this organization. This is the account used by Oracle Purchasing to accrue your payable liabilities when you receive your items. This account represents your uninvoiced receipts and is usually part of your Accounts Payable Liabilities in the balance sheet. Oracle Payables relieves this account when the invoice is matched and approved.
   Encumbrance	Enter a default general ledger account to accumulate encumbrance for this organization. This is the default account when you define your subinventories.

4. Enter the data for profit and loss accounts:

   Field Name	Description
   Sales	Enter a default sales revenue account. When you define your items, this account is defaulted to the item's sales account in the Invoicing attribute group.
   Cost of Goods Sold	Enter a default cost of goods sold account. When you define your items, this account is defaulted to the item's cost of goods sold account in the Costing attribute group.

5. Optionally, enter data for other accounts:

   • Project Clearance Account

   • Deferred COGS Account: Enter the deferred cogs account. The Deferred COGS account holds the costs until Receivables recognizes the revenue.

   • Cost Variance Account

   • LCM (landed cost management) Variance Account

     Note: For more information, see the Oracle Landed Cost Management Process Guide.

   • On-Hand Adjustment Account: The On-hand Adjustment Account is the default general ledger account for catch-weight transactions that can be used for catch-weight adjustments, and for lot increase and decrease transactions. This account defaults in the Catch Weight mobile page and can be changed.

     Additional Information: Oracle provides the following transaction types for catch weight transactions: Catch Weight Negative Adjustment and Catch Weight Positive Adjustment. For more information, see Transaction Types.

   • Lot Transaction Distribution Account

6. Save your work.