Entering Purchase Order Distributions

Use the purchase order Distributions window to enter distribution information for purchase order shipments or to view distributions that Purchasing has automatically created for you. You can enter multiple distributions per shipment line. You can also enter information about paper requisitions in this window.

Navigate to the Distributions window by selecting the Distributions button in the Shipments window.

1. Enter the line Number for the distribution line. If you enter a new distribution line, Purchasing displays the next sequential line number available. You can enter any line number that does not already exist.

2. The destination type determines the final destination of the purchased items. Choose one of the following options:
Expense - The goods are delivered to the requestor at an expense location. The destination subinventory is not applicable.
Inventory - The goods are received into inventory upon delivery. You can choose this option only if the item is stock enabled in the ship-to organization.
Shop Floor - The goods are delivered to an outside processing operation defined by Work in Process. You can choose this option only for outside processing items.

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If a single PO shipment has two differnt desintaion types then it result in 'Multiple' shipment destination type

3. Enter the Requestor and Deliver To location for this distribution. If the destination type is Inventory, you can also enter the Subinventory.

4. Enter the Quantity (Amount, if using Oracle Services Procurement) of the purchase order shipment that you want to charge to the Accounting Flexfield. The default value comes from the quantity you enter in the Shipments window. If you decrease the default quantity, Purchasing automatically defaults on the next distribution line the total quantity you have not yet assigned to a distribution line.

5. Enter the purchasing accounts. When you save your changes in this window, Purchasing uses the Account Generator to automatically create the following accounts for each distribution:
Charge: the account to charge for the cost of this item in the purchasing operating unit
Accrual: the AP accrual account in the purchasing operating unit
Variance: the invoice price variance account in the purchasing operating unit
Destination Charge: the account to charge for the cost of this item in the destination operating unit
Destination Variance: the invoice price variance account in the destination operating unit
Note: The last two accounts are created only if the receiving destination operating unit is different than the purchasing operating unit and there is a transaction flow defined between the two organizations

Examples:
PO Charge
01-000-1410-0000-000
Inventory Material Value (Asset A/C)

Accrual
01-000-2210-0000-000
Accounts Payable (Liability A/C)

Budget A/c

Variance A/C
01-510-5220-0000-000
Invoice Price Variance (Liability A/C)


All these accounts are created by PO Account generator and cant de modified the only exception is the PO Charge account for expense destination type, which can be manually changed/updated.

Oracle Applications Fusion Cloud - Inventory

Oracle Cloud/Fusion Procurement training will help you develop the fundamental skills required to set up and use the Procurement module. This training covers all the tasks, setups, forms and reports used in Procurement and related modules