## Reviewing Advanced Cost Accounting Audit Reports for Reconciliation

This chapter provides an overview of Advanced Cost Accounting financial reports for profitability analysis and discusses how to:

- Review the Profitability by Cost Object report.

- Review the Income Statement by Cost Object report.

- Review the Trial Balance by Cost Object report.

- Review the Trial Balance by Object Account for Cost Object report.

### Understanding Advanced Cost Accounting audit Reports

One of the obstacles that organizations using Activity Based Costing (ABC) face is trying to reconcile GAAP based reporting to ABC based reporting. GAAP methodologies of recognizing costs differ from ABC methodologies.

ABC changes the way costs are allocated to products in two ways. First, costs are redistributed between products and services. Second, more overhead costs are driven to products. As a result, the recognition of costs is often changed between accounting periods.

To be able to reconcile traditional or GAAP based accounting to that based on ABC accounting methodologies, organizations need to reconcile the opening and closing account balances from both a standard and activity-based view.

The JD Edwards EnterpriseOne Advanced Cost Accounting system provides four audit reports that assist in reconciling the two accounting systems:

- Resource To Activity Cost Audit Trail Report.

- Audit Trail By Assignment.

- Resource To Cost Object Audit Trail Report.

- Activity To Cost Object Audit Trail Report.

All four reports are based on information from an audit log file, called the Cost Calculations (F1611) table. You must indicate in the processing options of the Assignment Calculations (R1610) program that you want to generate the audit log table.

### Reviewing the Audit Trail Report-Resource to Activity Report

This section discusses how to:

- Run the Audit Trail Report-Resource to Activity report.

- Set processing options for Audit Trail Rpt-Resource to Activity (R16111).

#### Running the Audit Trail Report-Resource to Activity Report

Select Assignments (G1623), Audit Trail Rpt-Resource to Activity.

To reconcile JD Edwards EnterpriseOne General Accounting account balances to the activity view account balances, you need to reconcile resource to activity account balances. You can run this report to assist in this process. This report allows you to reconcile the resources (accounts) that have been assigned to an activity.

This report prints information from an audit log file, which is called the Cost Calculation Transactions table (F1611). You must specify in the processing options of the Assignment Calculations program (R1610) that you want the system to generate this audit log file.

When selecting records from the audit log file to print on the report, the system validates the Activity Code field and the To Activity Code field. The system only selects records where the Activity Code field is blank and the To Activity Code field is not blank.

The Audit Trail Report-Resource to Activity report also prints information from the Account Master table (F0901). This action allows you to perform data selection on fields in the Account Master table (F0901) such as the Account Category code fields.

#### Setting Processing Options for Audit Trail Rpt-Resource to Activity (R16111)

Processing options enable you to specify the default processing for programs and reports.

Process

1. View | Specify the number of the view for the program to use as data selection criteria. If you leave this processing option blank, the system uses a value of 1.

### Reviewing the Audit Trail Report by Assignment Report

This section discusses how to:

- Run the Audit Trail Report by Assignment report.

- Set processing options for Audit Trail Rpt by Assignment (R16112).

#### Running the Audit Trail Report by Assignment Report

Select Assignments (G1623), Audit Trail Report by Assignment.

Use this report if you need to reconcile account balances within a particular assignment. This report shows you all of the assignment activity for a particular account.

This report prints information from an audit log file, which is called the Cost Calculation Transactions table (F1611). You must specify in the processing options of the Assignment Calculations program (R1610) that you would like the system to generate this audit log file.

The system also prints information from the Account Master file (F0901), so you can use data selection on fields from this file such as the Account Category Code fields.

#### Setting Processing Options for Audit Trail Rpt by Assignment (R16112)

Processing options enable you to specify the default processing for programs and reports.

Process

1. View | Specify the number of the view for the program to use as data selection criteria. If you leave this processing option blank, the system uses a value of 1.

### Reviewing the Audit Trail Rpt-Resource to Cost Object Report

This section discusses how to:

- Run the Audit Trail Rpt-Resource to Cost Object report.

- Set processing options for Audit Trail Rpt-Resource to Cost Object (R16113).

#### Running the Audit Trail Rpt-Resource to Cost Object Report

Select Assignments (G1623), Audit Trail Rpt-Resource to Cost Object.

You can use this report to help you reconcile resources to cost object account balances. You can also use this report to reconcile the resources (accounts) that have been assigned to various cost objects within an assignment.

This report prints information from an audit log file, which is called the Cost Calculation Transactions table (F1611). You must specify in the processing options of the Assignment Calculations program (R1610) that you would like to generate this audit log file.

When selecting records from the audit log file, the system validates the To Cost Object field. The system selects only records where the To Cost Object field is not blank.

This report also prints information from the Account Master table (F0901). This feature allows you to perform data selection on fields in the Account Master table such as the Account Category Code fields.

#### Setting Processing Options for Audit Trail Rpt-Resource to Cost Object (R16113)

Processing options enable you to specify the default processing for programs and reports.

Process

1. View | Specify the number of the view for the program to use as data selection criteria. If you leave this processing option blank, the system uses a value of 1.

### Reviewing the Audit Trail Rpt-Activity to Cost Object Report

This section discusses how to:

- Run the Audit Trail Rpt-Activity to Cost Object report.

- Set processing options for Audit Trail Rpt-Activity to Cost Object (R16114).

#### Running the Audit Trail Rpt-Activity to Cost Object Report

Select Assignments (G1623), Audit Trail Rpt-Activity to Cost Object.

This report assist you in reconciling activity to cost object account balances. You can reconcile the cost objects to which an activity was assigned within a particular assignment.

This report prints information from an audit log file, which is called the Cost Calculation Transactions table (F1611). You must specify in the processing options of the Assignment Calculations program (R1610) that you would like to generate this audit log file.

When selecting records from the audit log file to print on the report, the system validates the Activity Code field and the To Cost Object field. The system selects only records where the Activity Code and the To Cost Object fields are not blank.

This report also prints information from the Account Master file (F0901). This action allows you to perform data selection on fields in the Account Master file such as the Account Category Code fields.

#### Setting Processing Options for Audit Trail Rpt-Activity to Cost Object (R16114)

Processing options enable you to specify the default processing for programs and reports.

Process

1. View | Specify the number of the view for the program to use as data selection criteria. If you leave this processing option blank, the system uses a value of 1.