COGS in 11i Vs Deferred COGS in R12

Prior to this enhancement, the value of goods shipped from inventory were expensed to COGS upon ship confirm, despite the fact that revenue may not yet have been earned on that shipment. With this enhancement, the value of goods shipped from inventory will be put in a Deferred COGS account. As percentages of Revenue are recognized, a matching percentage of the value of goods shipped from inventory will be moved from the Deferred COGS account to the COGS account, thus synchronizing, the recognition of revenue and COGS in accordance with the recommendations of generally accepted accounting principles. 
Note: Deferred COGS is a mandatory concept to used in R12 Version.
Where do we enter this COGS and Defferred COGS Account
Oracle Purchasing Navigation: Setup --> Organisation --> Organisation.
Select your inventory Organisation and Go to Other Accounts tab
Then you can see COGS and Deffered COGS A/c

Note: In early version like 11i as Defferred COGS concept is not exist, The following is screenshot from 11i Version where you can't find Deferred COGS A/c.

Accounting as per earlier version 11i.
At the time of shipping (Ship Confirmation) the accounting as follows:
         COGS A/c ..............................Dr.
                 To Inventory Valuation A/c..................Cr.
Accounting as per version Release 12 (R12):
At the time of shipping (Ship Confirmation) the accounting as follows:
         Deferred COGS A/c.................Dr.
                 To Inventory Valuation A/c..................Cr.
After AR invoice is generated, As percentages of Revenue are recognized, a matching percentage of the value of goods shipped from inventory will be moved from the Deferred COGS account to the COGS account as follows.
          COGS A/c...........................Dr.
                   To Deferred COGS A/c ......................Cr.
Record Order Management Transactions: Records new sales order transaction activity such as shipments and RMA returns in Oracle Order Management.
Run Collect Revenue Recognition Information program: This program will collect the change in revenue recognition percentage based on AR events within the user specified date range.

Navigation: Cost --> COGS Recognition --> Collect Revenue Recognition Information.

In Parameter, Give Start date and End date and submit it. 

Run Generate COGS Recognition Events: This program will create the COGS recognition transaction for each sales order line where there is a mismatch between the latest revenue recognition percentage and the current COGS recognition percentage. Here the system will credit the Deferred COGS accounting and transfer the relevant amount to COGS A/c. 

Navigation:  Cost --> COGS Recognition --> Generate COGS Recognition Events.
Here, the following accounting will be generated 
           COGS A/c...........................Dr.
                   To Deferred COGS A/c ......................Cr.

Ledger Set Concept in Oracle Apps

Ledger set is used to access multiple Ledgers information from single responsibility. Using Ledger set we can group only Ledgers which are having same Chart of Accounts and same Calendars.

Step 1: Define ledger sets
Navigation: Setup --> Financials --> Ledger Sets

Enter Name and Short name and all mandatory info and Save and Close this window.

Step 2: Assign Ledger set to responsibility

Navigation: System Administrator

Profile --> System

Choose responsibility

Profile Option: GL: Data Access Set

Choose Ledger set

If you assign both the profile options: GL Ledger Name & GL Data Access Set System will choose first Data Access set

Step 3: Enter Journal to test the functionality of ledger Set.

Navigation: Journal --> Enter

Enter new Journal

You can choose any Ledgers from here, which are assigned to Ledger set

Note: We have to assign GL: Data access set profile option and Ledger set to all the GL responsibilities, so that we can access all ledgers from any responsibility.

Definition Access Set Concept in Oracle Apps

It is an optional feature, for Security Purpose, which works at responsibility level .
It is used to provide "View","Use", "Modify" access to the various gl definitions.
For example: You can secure Calender, Mass Allocation Formula, FSG reports.. Etc. to allow users to modify, View and Use it.

Setup Step:
1. Create a Definition Access Set.
2. Assign it to one or more responsibilities to Definition Access Set.
3. "Enable Security" Check Box in Respective Form and click on "Assign access" and assign to definition access Set with the proper privileges (View, Use & Modify).

Let's see how to configure Definition Access Set
Step 1: Define Definition Access Set
Navigation: Set up --> Financials --> Definition Access sets --> Define.

Enter Name & Description to Definition Access set and Save it.

Step 2: Assign Definition Access set to Responsibility

Navigation:

Setup --> Financials --> Definition Access Sets --> Assign

Choose Responsibility: General ledger

Security Group: Standard

Choose Definition Access Sets

Automatic Privileges: Enable check boxes for: Use, View and Modify

Save and Close this window

Click on Ok Button and Ensure Program completed normal

Step 3: Enable Security for accounting Calendar

Navigation: Setup --> Financials --> Calendars --> Accounting

Query your accounting calendar

Select check box “Enable Security”

Click on “Assign Access” and Choose "Definition Access set"

Click on " OK" Button and Save it and following note will Appear

Decision window pop's Up, Now click on "Current" Button

Ensure the program completed normal.

Step 4: Query the accounting Calendar to Test the definition access set is working or not

Navigation: Setup --> Financials --> Calendars --> Accounting.

As we have given View, Use and Modify Privileges, you will be have all the right to view, use and modify the calendar data.

Query the definition access form to see the changes.

Data Access Set Concept in Oracle Apps

Data Access Set is an Optional feature for Security Purpose.
It is used to provide "Read Only" or "Read & Write" access to the ledger or balancing segment values or management segment values. It provides security in three Levels.
       1. Ledger Level.
       2. Balancing Segment Values.
       3. Management Segment Values.
Ledger Level: Provides access to Full Ledger (Whole COA)
Balancing Segment Values: Provides access to specific to Balancing segment Values
Management Segment Values: Provides access to specific Management segment Values.
Steps: 
1. Define Data Access Set
Navigation: Setup --> Financials --> Data Access Set.
2. Assign these data access set to a profile option (GL data access Set).