You can define any number of accounting classes. The valuation and variance accounts that are associated with these accounting classes determine which accounts are charged and when.

Discrete Accounting Classes
You can define accounting classes for each type of discrete production you use: standard discrete, asset non-standard discrete and expense non-standard discrete. You must assign an accounting class all your discrete jobs.

Standard Discrete
Standard discrete accounting classes can be used to group job costs. For example, if you build subassemblies and finished goods, you can define your accounting classes so that you can separately value and report the costs associated with subassembly and finishedgoods production. Standard discrete accounting classes can be automatically defaulted when you create discrete jobs.

When you define an accounting class, you must assign valuation and variance accounts to it. When you issue materials to a job that uses this accounting class, the appropriate valuation accounts are charged. When the job is closed, final costs and variances are calculated and posted to the variance and valuation accounts. When the accounting period is closed, these journal entries are automatically posted to the general ledger. (Cost -> Valuation A/C, Variance - Variance A/Cs)

Expense Non-Standard Discrete
Non-standard discrete accounting classes can be used to group and report various types of non-standard production costs, such as field service repair or engineering projects.
For example to track recurring expenses - machine maintenance or engineering projects - with non-standard jobs, you can define and assign an accounting class with a type of expense non-standard to these jobs. The valuation accounts carry the costs incurred on these expense jobs as an asset during the period and automatically writes them off to the variance accounts at period close.

Asset non–standard Discrete
On the other hand, if you use non-standard discrete jobs to track production costs as assets, you can define and assign an accounting class with a type of asset non-standard.
Asset non-standard discrete jobs are costed the same as standard discrete jobs. Valuation accounts are charged when material is issued to a job and final costs and variances are calculated and posted to the appropriate variance and valuation accounts when the job is closed.

WIP  Valuation Accounts
WIP accounting class valuation accounts are charged when you issue components, move assemblies, complete assemblies, and charge resources.
Material – Normally an asset account, this account tracks material costs. Under standard costing, it is debited at standard when you issue material to a job or schedule and credited at standard when you complete assemblies from a job or schedule, close a job or close and accounting period. Under average costing, this account is debited at the average cost at the time of the issue transaction and is credited when you complete assemblies from a job.

Material Overhead – Normally an asset account, this account tracks material overhead (burden) costs.
Under standard costing, it is charged/debited at standard when you issue material with material overhead to a job or schedule and relieved at standard when you complete assemblies from a job or schedule, close a job or close an accounting period. Under average costing, this account is debited at the average cost at the time of the issue transaction.
Note: When assemblies are completed and material overhead is earned, this account is not charged/credited. Instead, the material overhead account for the completion subinventory is debited.

Resource – Normally an asset account, this account tracks resource costs. Under standard costing, it is charged/debited at standard when resources are charged to a job or schedule and relieved/credited at standard when you complete assemblies from a job or schedule, close a job, or close an accounting period. Under average costing, this account is debited and credited at the resource rate at the time the resource is charged.

Outside processing – Normally an asset account, this account tracks outside processing costs. Under standard costing it is debited at the standard or purchase order cost when you receive items for a job or schedule. It is credited at standard when you complete assemblies from a job or schedule, close a job, or close an accounting period. Under average costing, the debiting of this account is based on item receipt (just as it is under standard costing).

Overhead – Normally an asset account this account tracks resource or department overhead cost. Under standard costing it is debited at standard when resources are charged to a job or schedule. It is relieved at standard when you complete assemblies from a job or schedule, close a job, or close an accounting period.

WIP Variance Accounts
Variance accounts associated with Standard Discrete and Non-Standard Asset accounting classes are charged when jobs are closed. Variance accounts associated with Expense Non-Standard Discrete, and optionally Repetitive accounting classes, are charged when accounting periods are closed.

Material variance– This account tracks variances that occur when the previous level material costs charged to the job or schedule do not equal the previous level material costs that are relieved. This calculation gives you a net material usage and configuration variance.

Resource variance – Tracks variances that occur when the resource costs charged to the job do not equal resource costs relieved.

Outside Processing variance – Tracks variances that occur when OSP costs charged to the job do not equal OSP costs relieved from the job

Overhead variance– This account tracks the variances that are occur when the overhead costs charged to the job or schedule do not equal the overhead costs relieved from the job or schedule. These variances include both efficiency and method variances.

Standard Cost variance - This Variance account applies only to Standard Discrete and Asset Non–Standard.
This account is charged for the sum of all the elemental standard cost adjustments when you perform a standard cost update that impacts an active job. Cost updates are not performed for repetitive schedules or expense non–standard jobs.

Bridging – Optional –

Expense – Optional-used to accommodate European accounting  Practices

Estimated Scrap – Not applicable – requires Oracle Shop floor mgmt and applies to lot based jobs.

Repetitive Accounting Classes
Repetitive accounting classes are used to group production costs and must be assigned to each repetitive line/assembly association that is created. Every schedule for that assembly on that line uses these accounts. The accounts are charged whenever you transact against the line/assembly association. Repetitive accounting classes can be automatically defaulted when you associate repetitive assemblies with production lines.

You can analyze repetitive manufacturing costs by assembly regardless of the line on which it was manufactured by using the same accounting class for all lines that build that assembly. You can use the same class for all assemblies on a line to do line based cost reporting or you can use a different accounting class for every line/assembly association.

Lot Based Job Accounting Classes
Oracle Shop Floor Management extends work in process functionality using network routings, lot based transactions, and yield based operational costing. If you have Oracle Shop Floor Management installed, you can define accounting classes for standard production and expense non-standard jobs.

Maintenance Account Class
Maintenance accounting classes are used to group costs for work orders used in Oracle Enterprise Asset Management (eAM). For example, if you are creating work orders for plant maintenance activities, you can define your accounting classes to separately value and report the costs related to asset. Maintenance accounting classes are automatically defaulted when you create eAM work orders.