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Business Activity
Based in Kentucky, USA, GE Appliances builds and ships a wide range of home appliances worldwide. With sales in excess of $5 billion and more than 11,000 employees, it is a major player in the very competitive, global home appliance market.
The Challenge
Maintaining full control over costs required management to break down Cost of Good Sold (COGS) into greater detail than is available as standard within Oracle inventory.

COGS was to be separated into standard inventory and non-inventory elements such as Warranty, Royalties, and Delivery costs. In addition, each COGS element needed to be booked separately, using specific and differentiable account code combinations.

For GE Appliances, the challenge was replacing their historical customisations while retaining the necessary functionality, without again incurring the cost and support overheads associated with Oracle customisation.
The Solution
The solution was to deploy the Virtual Trader Intercompany Engine to process inventory cost transactions as they passed through subledger accounting. The Virtual Trader Engine separated the journal entries for COGS into appropriate elements and posted the results into the General Ledger.

Following the success of the initial Virtual Trader solution, GE Appliances tackled further accounting challenges—issues relating to Oracle Fixed Assets, Oracle Projects, and Oracle Payables—by extending the Virtual Trader Engine rather than creating new Oracle customizations.