JD Edwards EnterpriseOne Advanced Cost Accounting 9.0 Implementation Guide

Transcription

1 JD Edwards EnterpriseOne Advanced Cost Accounting 9.0 Implementation Guide September 2008

2 JD Edwards EnterpriseOne Advanced Cost Accounting 9.0 Implementation Guide SKU e190aac-b 0908 Copyright , Oracle and/or its affiliates. All rights reserved. Trademark Notice Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners. License Restrictions Warranty/Consequential Damages Disclaimer This software and related documentation are provided under a license agreement containing restrictions on use and disclosure and are protected by intellectual property laws. Except as expressly permitted in your license agreement or allowed by law, you may not use, copy, reproduce, translate, broadcast, modify, license, transmit, distribute, exhibit, perform, publish or display any part, in any form, or by any means. Reverse engineering, disassembly, or decompilation of this software, unless required by law for interoperability, is prohibited. Subject to patent protection under one or more of the following U.S. patents: 5,781,908; 5,828,376; 5,950,010; 5,960,204; 5,987,497; 5,995,972; 5,987,497; and 6,223,345. Other patents pending. Warranty Disclaimer The information contained herein is subject to change without notice and is not warranted to be error-free. If you find any errors, please report them to us in writing. Restricted Rights Notice If this software or related documentation is delivered to the U.S. Government or anyone licensing it on behalf of the U.S. Government, the following notice is applicable: U.S. GOVERNMENT RIGHTS Programs, software, databases, and related documentation and technical data delivered to U.S. Government customers are commercial computer software or commercial technical data pursuant to the applicable Federal Acquisition Regulation and agency-specific supplemental regulations. As such, the use, duplication, disclosure, modification, and adaptation shall be subject to the restrictions and license terms set forth in the applicable Government contract, and, to the extent applicable by the terms of the Government contract, the additional rights set forth in FAR , Commercial Computer Software License (December 2007). Oracle USA, Inc., 500 Oracle Parkway, Redwood City, CA Hazardous Applications Notice This software is developed for general use in a variety of information management applications. It is not developed or intended for use in any inherently dangerous applications, including applications which may create a risk of personal injury. If you use this software in dangerous applications, then you shall be responsible to take all appropriate fail-safe, backup, redundancy and other measures to ensure the safe use of this software. Oracle Corporation and its affiliates disclaim any liability for any damages caused by use of this software in dangerous applications. Third Party Content, Products, and Services Disclaimer This software and documentation may provide access to or information on content, products and services from third parties. Oracle Corporation and its affiliates are not responsible for and expressly disclaim all warranties of any kind with respect to third party content, products and services. Oracle Corporation and its affiliates will not be responsible for any loss, costs, or damages incurred due to your access to or use of third party content, products or services.

3 Contains GNU libgmp library; Copyright 1991 Free Software Foundation, Inc. This library is free software which can be modified and redistributed under the terms of the GNU Library General Public License. Includes Adobe PDF Library, Copyright Adobe Systems, Inc. and DL Interface, Copyright Datalogics Inc. All rights reserved. Adobe is a trademark of Adobe Systems Incorporated. Portions of this program contain information proprietary to Microsoft Corporation. Copyright Microsoft Corporation. Portions of this program contain information proprietary to Tenberry Software, Inc. Copyright Tenberry Software, Inc. Portions of this program contain information proprietary to Premia Corporation. Copyright 1993 Premia Corporation. This product includes code licensed from RSA Data Security. All rights reserved. This product includes software developed by the OpenSSL Project for use in the OpenSSL Toolkit ( This product includes cryptographic software written by Eric Young (eay@cryptsoft.com). This product includes software written by Tim Hudson (tjh@cryptsoft.com). All rights reserved. This product includes the Sentry Spelling-Checker Engine, Copyright 1993 Wintertree Software Inc. All rights reserved. Open Source Disclosure Oracle takes no responsibility for its use or distribution of any open source or shareware software or documentation and disclaims any and all liability or damages resulting from use of said software or documentation. The following open source software may be used in Oracle s JD Edwards EnterpriseOne products and the following disclaimers are provided: This product includes software developed by the Apache Software Foundation ( Copyright (c) The Apache Software Foundation. All rights reserved. THIS SOFTWARE IS PROVIDED AS IS AND ANY EXPRESSED OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE DISCLAIMED. IN NO EVENT SHALL THE APACHE SOFTWARE FOUNDATION OR ITS CONTRIBUTORS BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.

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5 Contents General Preface About This Documentation Preface......xvii JD Edwards EnterpriseOne Application Prerequisites......xvii Application Fundamentals......xvii Documentation Updates and Downloading Documentation......xviii Obtaining Documentation Updates...xviii Downloading Documentation...xviii Additional Resources...xviii Typographical Conventions and Visual Cues...xix Typographical Conventions...xx Visual Cues...xx Country, Region, and Industry Identifiers...xxi Currency Codes...xxii Comments and Suggestions......xxii Common Fields Used in Implementation Guides......xxii Preface JD Edwards EnterpriseOne Advanced Cost Accounting Preface......xxv JD Edwards EnterpriseOne Products......xxv JD Edwards EnterpriseOne Application Fundamentals......xxv Common Fields Used in This Implementation Guide...xxv Chapter 1 Getting Started with JD Edwards EnterpriseOne Advanced Cost Accounting JD Edwards EnterpriseOne Advanced Cost Accounting Overview JD Edwards EnterpriseOne Advanced Cost Accounting Business Processes JD Edwards EnterpriseOne Advanced Cost Accounting Integrations JD Edwards EnterpriseOne Advanced Cost Accounting Implementation...6 Global Implementation Steps...7 Chapter 2 Setting Up Advanced Cost Accounting Understanding Advanced Cost Accounting Setup Copyright , Oracle and/or its affiliates. All rights reserved. v

6 Contents Prerequisite...9 Advanced Cost Accounting Setup...9 Setting Up Constants Understanding Constant Setup...11 Forms Used to Set Up Constants...13 Activating Cost Objects and Activity-Based Costing...13 Activating Detailed Product Costs...13 Setting Up Cost Object Edit Codes Understanding Cost Object Edit Code Setup...15 Prerequisite...15 Form Used to Set Up Cost Object Edit Codes...15 Setting Up Cost Object Edit Codes...15 Setting Processing Options for Accounts by Business Unit (P0901)...16 Setting Up Cost Object Types Understanding Cost Object Type Setup...17 Form Used to Set Up Cost Object Types...17 Setting Up Cost Object Types...17 Setting Up AAIs by Cost Component Understanding AAIs by Cost Component Setup...20 Understanding AAIs for Detailed Product Costs...21 Prerequisite...21 Form Used to Set Up AAIs by Cost Component...22 Setting Up AAIs by Cost Component...22 Setting Processing Options for Distribution AAIs (P40950)...24 Setting Up Flex Accounting Understanding Flex Accounting...24 Understanding Rules for Defining a Flexible Format...25 Understanding Account Information...26 Form Used to Set Up Flex Accounting...26 Setting Up Flex Accounting...26 Setting Up Cost Analyzer Views Understanding Cost Analyzer View Setup...27 Form Used to Set Up Cost Analyzer Views...28 Setting Up Cost Analyzer Views...28 Setting Up Profit Management User-Defined Codes Understanding Profit Management User-Defined Codes...29 Understanding Cost Pools...31 Setting Processing Options for User-Defined Codes (P0004A)...31 vi Copyright , Oracle and/or its affiliates. All rights reserved.

7 Contents Chapter 3 Understanding Managerial Accounting and Activity-Based Costing Managerial Accounting and Activity-Based Costing Managerial Accounting and Activity-Based Costing...33 Data Model Overview for Activity-Based Costing...34 The Decision Making Process...34 Chapter 4 Setting Up Drivers Understanding Drivers Understanding Driver Setup Driver Setup...38 Prerequisite Defining Automatic Drivers Form Used to Define Automatic Drivers...38 Defining Automatic Drivers...38 Defining Manual Drivers Form Used to Define Manual Drivers...40 Defining Manual Drivers...40 Chapter 5 Setting Up Activities Setting Up Activities Understanding Activity Setup...41 Prerequisite...41 Form Used to Set Up Activities...42 Defining Activity Groups...42 Assigning Activities to Groups...42 Setting Processing Options for ABC Workbench (P1640)...42 Chapter 6 Understanding Cost Object Tracking Cost Object Tracking Project Budget Calculation and Management Purchase Price Variances Tracking by Cost Object and Component Freight Cost Management Copyright , Oracle and/or its affiliates. All rights reserved. vii

8 Contents Chapter 7 Using Cost Object Tracking in General Accounting Understanding Cost Object Tracking in General Accounting Understanding the Cost Object Information Update Process in the General Ledger Entering Cost Object Information in GL Journal Entries Understanding Cost Object Information Entry in GL Journal Entries...50 Form Used to Enter Cost Object Information in GL Journal Entries...50 Entering Cost Object Information in GL Journal Entries...51 Setting Processing Options for Journal Entries (P0911)...51 Chapter 8 Using Cost Object Tracking in Accounts Receivable Understanding Cost Object Tracking in Accounts Receivable Entering Cost Object Information in Standard Invoices Forms Used to Enter Cost Object Information in Standard Invoices...54 Entering Cost Object Information in Standard Invoices...54 Entering Cost Object Information in Speed Invoices Understanding Cost Object Information Entry in Speed Invoices...55 Form Used to Enter Cost Object Information in Speed Invoices...55 Entering Cost Object Information in Speed Invoices...55 Entering Cost Object Information for Batch Invoices Understanding Cost Object Information Entry for Batch Invoice...57 Processing Batch Invoices...57 Entering Cost Object Information for Recurring Invoices Understanding Cost Object Information Entry for Recurring Invoices...58 Form Used to Enter Cost Object Information for Recurring Invoices...58 Entering Cost Object Information for Recurring Invoices...58 Chapter 9 Using Cost Object Tracking in Accounts Payable Understanding Cost Object Tracking in Accounts Payable Entering Cost Object Information on Standard Vouchers Understanding Cost Object Information Entry on Standard Vouchers...61 Forms Used to Enter Cost Object Information on Standard Vouchers...62 Entering Cost Object Information on Standard Vouchers...62 Entering Cost Object Information on Speed Vouchers Understanding Cost Object Information Entry on Speed Vouchers...63 Form Used to Enter Cost Object Information on Speed Vouchers...63 viii Copyright , Oracle and/or its affiliates. All rights reserved.

9 Contents Entering Cost Object Information on Speed Vouchers...63 Entering Cost Object Information on Multi-company Vouchers Understanding Cost Object Information Entry on Speed Vouchers...65 Form Used to Enter Cost Object Information on Speed Vouchers...65 Entering Cost Object Information on Speed Vouchers...65 Entering Cost Object Information on Multiple Vouchers Understanding Cost Object Information Entry on Multiple Vouchers...66 Form Used to Enter Cost Object Information on Multiple Vouchers...66 Entering Cost Object Information on Multiple Vouchers...67 Entering Cost Object Information on Recurring Vouchers Understanding Cost Object Information Entry on Recurring Vouchers...68 Form Used to Enter Cost Object Information on Recurring Vouchers...68 Entering Cost Object Information on Recurring Vouchers...68 Chapter 10 Using Store and Forward in Cost Object Tracking Understanding Store and Forward Understanding General Accounting General Accounting...71 Understanding Accounts Payable Entering Cost Object Information in Store and Forward Journal Entries Understanding Cost Object Information Entry in Store and Forward Journal Entries...72 Prerequisite...72 Form Used to Enter Cost Object Information in Store and Forward Journal Entries...73 Entering Cost Object Information in Store and Forward Journal Entries...73 Uploading Cost Object Information Using the Store and Forward Journal Entry Upload Understanding Cost Object Information Uploads Using the Store and Forward Journal Entry Upload...74 Prerequisites...74 Uploading Cost Object Information Using the Store and Forward Journal Entry Upload...74 Uploading Cost Object Information Using the Store and Forward Journal Entry Batch Processor Understanding Cost Object Information Uploads Using the Store and Forward Journal Entry Batch Processor...75 Uploading Cost Object Information Using the Store and Forward Journal Entry Batch Processor...75 Entering Cost Object Information in Store and Forward Voucher Entry Understanding Cost Object Information Entry in Store and Forward Voucher Entry...75 Form Used to Enter Cost Object Information in Store and Forward Voucher Entry...76 Entering Cost Object Information in Store and Forward Voucher Entry...76 Uploading Cost Object Information Using Store and Forward Voucher Entry Upload Copyright , Oracle and/or its affiliates. All rights reserved. ix

10 Contents Understanding Cost Object Information Uploads Using Store and Forward Voucher Entry Upload...77 Uploading Cost Object Information Using Store and Forward Voucher Entry Upload...77 Uploading Cost Object Information Using the Store and Forward Batch Voucher Process Understanding Cost Object Information Uploads Using the Store and Forward Batch Voucher Process...77 Uploading Cost Object Information Using the Store and Forward Batch Voucher Process...78 Chapter 11 Using Cost Object Tracking in Manufacturing Understanding Cost Object Tracking in Manufacturing Cost Object Information Entry in Work Orders...81 Cost Information Update in Manufacturing Accounting...82 Chapter 12 Using Cost Object Tracking for Procurement Understanding Cost Object Tracking for Procurement Understanding Cost Object Information Entry in Landed Costs Entering Cost Object Information in Purchase Order Entry Understanding Cost Object Information Entry in Purchase Order Entry...89 Form Used to Enter Cost Object Information in Purchase Order Entry...89 Entering Cost Object Information in Purchase Order Header...89 Entering Cost Object Information in Purchase Order Receipts Understanding Cost Object Information Entry in Purchase Order Receipts...91 Form Used to Enter Cost Object Information in Purchase Order Receipts...92 Entering Cost Object Information in Purchase Order Receipts...92 Entering Cost Object Information in Purchase Order Workbench Understanding Cost Object Information Entry in Purchase Order Receipts...93 Form Used to Enter Cost Object Information in Purchase Order Workbench...93 Entering Cost Object Information in Purchase Order Workbench...93 Entering Cost Object Information During Voucher Match Understanding Cost Object Information Entry During Voucher Match...94 Prerequisite...95 Form Used to Enter Cost Information During Voucher Match...95 Entering Cost Information During Voucher Match...95 x Copyright , Oracle and/or its affiliates. All rights reserved.

11 Contents Chapter 13 Understanding Cost Object Tracking in Sales Order Management Cost Object Tracking in Sales Order Management Cost Object Information Entry in a Sales Order Cost Object Information Updates During Sales Update Chapter 14 Using Cost Object Tracking in Transportation Understanding Cost Object Tracking in Transportation Using Cost Object Tracking in Transportation Chapter 15 Using Cost Object Tracking in Stock Valuation GL Update Understanding Cost Object Tracking in Stock Valuation GL Update Running the Stock Valuation GL Update Program (R39130) Setting Processing Options for Stock Valuation GL Update (R39130) Chapter 16 Working with Cost Analyzer Balances Understanding Cost Analyzer Balances Prerequisites Updating Cost Analyzer Information Understanding Cost Analyzer Information Updates Posting Entries to the Cost Analyzer Balances Table Setting Processing Options for Post to Cost Analyzer Balances (R1602) Viewing Cost Analyzer Balances Understanding Cost Analyzer Balance Review Forms Used to View Cost Analyzer Information Viewing Balances with Cost Analyzer Inquiry Setting Processing Options for Cost Analyzer Inquiry (P1602) Viewing Balances with Cost Analyzer Inquiry by Account (P16021) Setting Processing Options for Cost Analyzer Inquiry by Account (P16021) Viewing Balances Using Cost Analyzer Account Ledger Inquiry Setting Processing Options for Cost Analyzer Account Ledger Inquiry (P16200) Purging Cost Analyzer Balances Understanding Cost Analyzer Balances Purge Running Purge Cost Analyzer Copyright , Oracle and/or its affiliates. All rights reserved. xi

12 Contents Setting Processing Options for Purge Cost Analyzer (R1602P) Reviewing Profitability by Cost Object Running Item Profitability Setting Processing Options for Item Profitability (R16022) Chapter 17 Processing External Cost Analyzer Balances Understanding External Cost Analyzer Balances Processing External Cost Analyzer Balances Processing Understanding External Cost Analyzer Balances Importing Understanding External Cost Analyzer Balances Purging Entering External Cost Analyzer Balances Manually Understanding Manual External Cost Analyzer Balances Entry Form Used to Enter External Cost Analyzer Balances Manually Entering External Cost Analyzer Balances Manually Reviewing and Revising External Cost Analyzer Balances Understanding External Cost Analyzer Balances Review and Revision Form Used to Review and Revise External Cost Analyzer Balances Reviewing and Revising External Cost Analyzer Balances Uploading External Cost Analyzer Balances Understanding External Cost Analyzer Balances Uploads Setting Processing Options for External Cost Analyzer Balances Processor (R1602Z1) Chapter 18 Calculating Driver Balances Entering Manual Driver Information Understanding Manual Driver Information Entry Understanding Based On Tables Prerequisite Forms Used to Enter and Revise Manual Driver Information Entering Manual Driver Information Revising Manual Driver Information Setting Processing Options for Driver Volume Revisions (P1632) Selecting Drivers Form Used to Select Drivers Selecting Drivers Running Driver Calculations Understanding Driver Calculations xii Copyright , Oracle and/or its affiliates. All rights reserved.

13 Contents Running Driver Calculations Setting Processing Options for Automatic Driver Calculation (R1632) Reviewing Driver Balances Form Used to Review Driver Balances Reviewing Driver Balances Purging Driver Balances Understanding Driver Balances Purge Purging Driver Balances Setting Processing Options for Driver Balances Purge (R1632P) Chapter 19 Processing External Driver Balances Understanding External Driver Balances Processing Understanding External Driver Balances Importing Entering External Driver Balances Manually Understanding External Driver Balances Manual Entry Form Used to Enter External Driver Balances Manually Entering External Driver Balances Manually Reviewing and Revising External Driver Balances Understanding External Driver Balances Review and Revision Form Used to Review and Revise External Driver Balances Reviewing and Revising External Driver Balances Uploading External Driver Balances Understanding External Driver Balances Uploads Form Used to Upload External Driver Balances Setting Processing Options for External Driver Balances Processing (R1632Z1I) Purging External Driver Balances Understanding External Driver Balances Purging Form Used to Purge External Driver Balances Running the External Driver Balances Purge Program (R1632Z1P) Setting Processing Options for External Driver Balances Purge (P1632Z1P) Chapter 20 Reviewing Activities Understanding Activities Understanding Actual Project Costs Tracking by Activity Understanding Project Profiles Definition by Activity Understanding Time Entry by Activity Copyright , Oracle and/or its affiliates. All rights reserved. xiii

14 Contents Reviewing Activities Understanding Activity Review Understanding the ABC Workbench Forms Used to Review Activities Reviewing Activity Costs Setting Processing Options for Activity Cost Inquiry (P1641) Reviewing Activities Reviewing the Activity Master Report Setting Processing Options for Activity Master Report (R1640) Chapter 21 Working with Assignments Understanding Assignments Understanding Assignment Creation Understanding Reciprocal Assignments Creating Rates Understanding Rates Creation Form Used to Create Rates Creating Rates Creating Assignments Understanding Assignments Understanding Index Computation Creation Understanding Variable Numerator Creation Understanding Rate Calculation Creation Understanding Rate-Based Computation Creation Form Used to Create Index, Variable Numerator, Rate, and Rate-Based Calculations Creating Calculations Creating Reciprocal Assignments Understanding Reciprocal Assignment Creation Form Used to Create Reciprocal Assignments Creating Reciprocal Assignments Specifying the Maximum Iteration Threshold Understanding the Maximum Iteration Threshold Form Used to Specify the Maximum Iteration Threshold Specifying the Maximum Iteration Threshold Using Cost Object Matching Understanding Cost Object Matching Forms Used to Create Assignments Using Cost Object Matching Creating Assignments Using Cost Object Matching xiv Copyright , Oracle and/or its affiliates. All rights reserved.

15 Contents Revising Cost Assignments Revising Cost Assignment Calculations Form Used to Revise Cost Assignment Calculations Revising Cost Assignment Calculations Running Cost Assignment Calculations Understanding the Assignment Calculations Program Running the Assignment Calculations Program (R16103) Setting Processing Options for Cost Calculations (R16103) Reviewing Cost Assignment Transactions Understanding Cost Assignment Transaction Review Forms Used to Review Cost Assignment Transactions Reviewing Cost Assignment Transactions Reviewing the Assignment Computations Report Understanding the Assignment Computations Report Reviewing the Assignment Computations Report Chapter 22 Reviewing Advanced Cost Accounting Financial Reports for Profitability Analysis Understanding Advanced Cost Accounting Financial Reports Prerequisite Advanced Cost Accounting Financial Reports Comparison of Profitability of Multiple Projects Reviewing the Profitability by Cost Object Report Understanding the Profitability by Cost Object Report Running the Profitability by Cost Object Report Setting Processing Options for Profitability by Cost Object (R16023) Reviewing the Income Statement by Cost Object Report Understanding the Income Statement by Cost Object Report Running the Income Statement by Cost Object Report Setting Processing Options for Income Statement By Cost Object (R16024) Reviewing the Trial Balance by Cost Object Report Understanding the Trial Balance by Cost Object Report Running the Trial Balance by Cost Object Report Setting Processing Options for Trial Balance by Cost Object (R16025) Reviewing the Trial Balance by Object Account for Cost Object Report Understanding the Trial Balance by Cost Object Report Running the Trial Balance by Object Account for Cost Object Report Setting Processing Options for Trial Balance by Object Account for Cost Object (R16026) Copyright , Oracle and/or its affiliates. All rights reserved. xv

16 Contents Chapter 23 Reviewing Advanced Cost Accounting Audit Reports for Reconciliation Understanding Advanced Cost Accounting audit Reports Reviewing the Audit Trail Report-Resource to Activity Report Running the Audit Trail Report-Resource to Activity Report Setting Processing Options for Audit Trail Rpt-Resource to Activity (R16111) Reviewing the Audit Trail Report by Assignment Report Running the Audit Trail Report by Assignment Report Setting Processing Options for Audit Trail Rpt by Assignment (R16112) Reviewing the Audit Trail Rpt-Resource to Cost Object Report Running the Audit Trail Rpt-Resource to Cost Object Report Setting Processing Options for Audit Trail Rpt-Resource to Cost Object (R16113) Reviewing the Audit Trail Rpt-Activity to Cost Object Report Running the Audit Trail Rpt-Activity to Cost Object Report Setting Processing Options for Audit Trail Rpt-Activity to Cost Object (R16114) Chapter 24 Reviewing the Customer Profitability Report Understanding the Customer Profitability Report Customer Profitability Report Prerequisites Running the Customer Profitability Report Setting Processing Options for the Customer Profitability Report (R16028) Glossary of JD Edwards EnterpriseOne Terms Index xvi Copyright , Oracle and/or its affiliates. All rights reserved.

17 About This Documentation Preface JD Edwards EnterpriseOne implementation guides provide you with the information that you need to implement and use JD Edwards EnterpriseOne applications from Oracle. This preface discusses: JDEdwardsEnterpriseOneapplication prerequisites. Application fundamentals. Documentation updates and downloading documentation. Additional resources. Typographical conventions and visual cues. Comments and suggestions. Common fields in implementation guides. Note. Implementation guides document only elements, such as fields and check boxes, that require additional explanation. If an element is not documented with the process or task in which it is used, then either it requires no additional explanation or it is documented with common fields for the section, chapter, implementation guide, or product line. Fields that are common to all JD Edwards EnterpriseOne applications are defined in this preface. JD Edwards EnterpriseOne Application Prerequisites To benefit fully from the information that is covered in these books, you should have a basic understanding of how to use JD Edwards EnterpriseOne applications. You might also want to complete at least one introductory training course, if applicable. You should be familiar with navigating the system and adding, updating, and deleting information by using JD Edwards EnterpriseOne menus, forms, or windows. You should also be comfortable using the World Wide Web and the Microsoft Windows or Windows NT graphical user interface. These books do not review navigation and other basics. They present the information that you need to use the system and implement your JD Edwards EnterpriseOne applications most effectively. Application Fundamentals Each application implementation guide provides implementation and processing information for your JD Edwards EnterpriseOne applications. For some applications, additional, essential information describing the setup and design of your system appears in a companion volume of documentation called the application fundamentals implementation guide. Most product lines have a version of the application fundamentals implementation guide. The preface of each implementation guide identifies the application fundamentals implementation guides that are associated with that implementation guide. Copyright , Oracle and/or its affiliates. All rights reserved. xvii

18 General Preface The application fundamentals implementation guide consists of important topics that apply to many or all JD Edwards EnterpriseOne applications. Whether you are implementing a single application, some combination of applications within the product line, or the entire product line, you should be familiar with the contents of the appropriate application fundamentals implementation guides. They provide the starting points for fundamental implementation tasks. Documentation Updates and Downloading Documentation This section discusses how to: Obtain documentation updates. Download documentation. Obtaining Documentation Updates You can find updates and additional documentation for this release, as well as previous releases, on Oracle s PeopleSoft Customer Connection website. Through the Documentation section of Oracle s PeopleSoft Customer Connection, you can download files to add to your Implementation Guides Library. You ll find a variety of useful and timely materials, including updates to the full line of JD Edwards EnterpriseOne documentation that is delivered on your implementation guides CD-ROM. Important! Before you upgrade, you must check Oracle s PeopleSoft Customer Connection for updates to the upgrade instructions. Oracle continually posts updates as the upgrade process is refined. See Also Oracle s PeopleSoft Customer Connection, Downloading Documentation In addition to the complete line of documentation that is delivered on your implementation guide CD-ROM, Oracle makes JD Edwards EnterpriseOne documentation available to you via Oracle s website. You can download PDF versions of JD Edwards EnterpriseOne documentation online via the Oracle Technology Network. Oracle makes these PDF files available online for each major release shortly after the software is shipped. See Oracle Technology Network, Additional Resources The following resources are located on Oracle s PeopleSoft Customer Connection website: Resource Navigation Application maintenance information Business process diagrams Updates + Fixes Support, Documentation, Business Process Maps xviii Copyright , Oracle and/or its affiliates. All rights reserved.

19 General Preface Resource Interactive Services Repository Hardware and software requirements Installation guides Integration information Minimum technical requirements (MTRs) Documentation updates Implementation guides support policy Prerelease notes Product release roadmap Release notes Release value proposition Statement of direction Troubleshooting information Upgrade documentation Navigation Support, Documentation, Interactive Services Repository Implement, Optimize + Upgrade; Implementation Guide; Implementation Documentation and Software; Hardware and Software Requirements Implement, Optimize + Upgrade; Implementation Guide; Implementation Documentation and Software; Installation Guides and Notes Implement, Optimize + Upgrade; Implementation Guide; Implementation Documentation and Software; Pre-Built Integrations for PeopleSoft Enterprise and JD Edwards EnterpriseOne Applications Implement, Optimize + Upgrade; Implementation Guide; Supported Platforms Support, Documentation, Documentation Updates Support, Support Policy Support, Documentation, Documentation Updates, Category, Release Notes Support, Roadmaps + Schedules Support, Documentation, Documentation Updates, Category, Release Notes Support, Documentation, Documentation Updates, Category, Release Value Proposition Support, Documentation, Documentation Updates, Category, Statement of Direction Support, Troubleshooting Support, Documentation, Upgrade Documentation and Scripts Typographical Conventions and Visual Cues This section discusses: Typographical conventions. Visualcues. Country, region, and industry identifiers. Currency codes. Copyright , Oracle and/or its affiliates. All rights reserved. xix

20 General Preface Typographical Conventions This table contains the typographical conventions that are used in implementation guides: Typographical Convention or Visual Cue Description Bold Indicates PeopleCode function names, business function names, event names, system function names, method names, language constructs, and PeopleCode reserved words that must be included literally in the function call. Italics Indicates field values, emphasis, and JD Edwards EnterpriseOne or other book-length publication titles. In PeopleCode syntax, italic items are placeholders for arguments that your program must supply. We also use italics when we refer to words as words or letters as letters, as in the following: Enter the letter O. KEY+KEY Indicates a key combination action. For example, a plus sign (+) between keys means that you must hold down the first key while you press the second key. For ALT+W, hold down the ALT key while you press the W key. Monospace font Indicates a PeopleCode program or other code example. (quotation marks) Indicate chapter titles in cross-references and words that are used differently from their intended meanings.... (ellipses) Indicate that the preceding item or series can be repeated any number of times in PeopleCode syntax. { } (curly braces) Indicate a choice between two options in PeopleCode syntax. Options are separated by a pipe ( ). [ ] (square brackets) Indicate optional items in PeopleCode syntax. & (ampersand) When placed before a parameter in PeopleCode syntax, an ampersand indicates that the parameter is an already instantiated object. Ampersands also precede all PeopleCode variables. Visual Cues Implementation guides contain the following visual cues. xx Copyright , Oracle and/or its affiliates. All rights reserved.

21 General Preface Notes Notes indicate information that you should pay particular attention to as you work with the JD Edwards EnterpriseOne system. Note. Example of a note. If the note is preceded by Important!, the note is crucial and includes information that concerns what you must do for the system to function properly. Important! Example of an important note. Warnings Warnings indicate crucial configuration considerations. Pay close attention to warning messages. Warning! Example of a warning. Cross-References Implementation guides provide cross-references either under the heading See Also or on a separate line preceded by the word See. Cross-references lead to other documentation that is pertinent to the immediately preceding documentation. Country, Region, and Industry Identifiers Information that applies only to a specific country, region, or industry is preceded by a standard identifier in parentheses. This identifier typically appears at the beginning of a section heading, but it may also appear at the beginning of a note or other text. Example of a country-specific heading: (FRA) Hiring an Employee Example of a region-specific heading: (Latin America) Setting Up Depreciation Country Identifiers Countries are identified with the International Organization for Standardization (ISO) country code. Region Identifiers Regions are identified by the region name. The following region identifiers may appear in implementation guides: Asia Pacific Europe Latin America North America Industry Identifiers Industries are identified by the industry name or by an abbreviation for that industry. The following industry identifiers may appear in implementation guides: USF(U.S.Federal) Copyright , Oracle and/or its affiliates. All rights reserved. xxi

22 General Preface E&G (Education and Government) Currency Codes Monetary amounts are identified by the ISO currency code. Comments and Suggestions Your comments are important to us. We encourage you to tell us what you like, or what you would like to see changed about implementation guides and other Oracle reference and training materials. Please send your suggestions to your product line documentation manager at Oracle Corporation, 500 Oracle Parkway, Redwood Shores, CA 94065, U.S.A. Or us at While we cannot guarantee to answer every message, we will pay careful attention to your comments and suggestions. Common Fields Used in Implementation Guides Address Book Number As If Currency Code Batch Number Batch Date Batch Status Enter a unique number that identifies the master record for the entity. An address book number can be the identifier for a customer, supplier, company, employee, applicant, participant, tenant, location, and so on. Depending on the application, the field on the form might refer to the address book number as the customer number, supplier number, or company number, employee or applicant ID, participant number, and so on. Enter the three-character code to specify the currency that you want to use to view transaction amounts. This code enables you to view the transaction amounts as if they were entered in the specified currency rather than the foreign or domestic currency that was used when the transaction was originally entered. Displays a number that identifies a group of transactions to be processed by the system. On entry forms, you can assign the batch number or the system can assign it through the Next Numbers program (P0002). Enter the date in which a batch is created. If you leave this field blank, the system supplies the system date as the batch date. Displays a code from user-defined code (UDC) table 98/IC that indicates the posting status of a batch. Values are: Blank: Batch is unposted and pending approval. A: The batch is approved for posting, has no errors and is in balance, but has not yet been posted. D: The batch posted successfully. E: The batch is in error. You must correct the batch before it can post. xxii Copyright , Oracle and/or its affiliates. All rights reserved.

23 General Preface Branch/Plant Business Unit Category Code Company Currency Code Document Company Document Number Document Type P: The system is in the process of posting the batch. The batch is unavailable until the posting process is complete. If errors occur during the post, the batch status changes to E. U: The batch is temporarily unavailable because someone is working with it, or the batch appears to be in use because a power failure occurred while the batch was open. Enter a code that identifies a separate entity as a warehouse location, job, project, work center, branch, or plant in which distribution and manufacturing activities occur. In some systems, this is called a business unit. Enter the alphanumeric code that identifies a separate entity within a business for which you want to track costs. In some systems, this is called a branch/plant. Enter the code that represents a specific category code. Category codes are user-defined codes that you customize to handle the tracking and reporting requirements of your organization. Enter a code that identifies a specific organization, fund, or other reporting entity. The company code must already exist in the F0010 table and must identify a reporting entity that has a complete balance sheet. Enter the three-character code that represents the currency of the transaction. JD Edwards EnterpriseOne provides currency codes that are recognized by the International Organization for Standardization (ISO). The system stores currency codes in the F0013 table. Enter the company number associated with the document. This number, used in conjunction with the document number, document type, and general ledger date, uniquely identifies an original document. If you assign next numbers by company and fiscal year, the system uses the document company to retrieve the correct next number for that company. If two or more original documents have the same document number and document type, you can use the document company to display the document that you want. Displays a number that identifies the original document, which can be a voucher, invoice, journal entry, or time sheet, and so on. On entry forms, you can assign the original document number or the system can assign it through the Next Numbers program. Enter the two-character UDC, from UDC table 00/DT, that identifies the origin and purpose of the transaction, such as a voucher, invoice, journal entry, or time sheet. JD Edwards EnterpriseOne reserves these prefixes for the document types indicated: P: Accounts payable documents. R: Accounts receivable documents. T: Time and pay documents. I: Inventory documents. O: Purchase order documents. S: Sales order documents. Copyright , Oracle and/or its affiliates. All rights reserved. xxiii

24 General Preface Effective Date Fiscal Period and Fiscal Year G/L Date (general ledger date) Enter the date on which an address, item, transaction, or record becomes active. The meaning of this field differs, depending on the program. For example, the effective date can represent any of these dates: The date on which a change of address becomes effective. The date on which a lease becomes effective. The date on which a price becomes effective. The date on which the currency exchange rate becomes effective. The date on which a tax rate becomes effective. Enter a number that identifies the general ledger period and year. For many programs, you can leave these fields blank to use the current fiscal period and year defined in the Company Names & Number program (P0010). Enter the date that identifies the financial period to which a transaction will be posted. The system compares the date that you enter on the transaction to the fiscal date pattern assigned to the company to retrieve the appropriate fiscal period number and year, as well as to perform date validations. xxiv Copyright , Oracle and/or its affiliates. All rights reserved.

25 JD Edwards EnterpriseOne Advanced Cost Accounting Preface This preface discusses: JD Edwards EnterpriseOne products. JD Edwards EnterpriseOne application fundamentals. Common fields used in this implementation guide. JD Edwards EnterpriseOne Products This implementation guide refers to the following JD Edwards EnterpriseOne products from Oracle: JD Edwards EnterpriseOne General Accounting JD Edwards EnterpriseOne Accounts Payable JD Edwards EnterpriseOne Work Orders JD Edwards EnterpriseOne Inventory Management JD Edwards EnterpriseOne Product Costing and Manufacturing Accounting JD Edwards EnterpriseOne Transportation Management JD Edwards EnterpriseOne Application Fundamentals Additional, essential information describing the setup and design of your system appears in a companion volume of documentation called JD Edwards EnterpriseOne Financial Management Applications Fundamentals 9.0 Implementation Guide. Customers must conform to the supported platforms for the release as detailed in the JD Edwards EnterpriseOne minimum technical requirements. In addition, JD Edwards EnterpriseOne may integrate, interface, or work in conjunction with other Oracle products. Refer to the cross-reference material in the Program Documentation at for Program prerequisites and version cross-reference documents to assure compatibility of various Oracle products. Common Fields Used in This Implementation Guide Cost Type Data Item Enter a code that specifies the type of cost object and the type of editing. Types are stored in the Cost Object Types table (F1620) and can be added or modified using the Cost Object Types program (P1620). Enter a cost object andcosttypetoassociateaflexiblesegment with the standard format segment. Enter a code that identifies and defines a unit of information. It is an alphanumeric code up to 8 characters long that does not allow blanks or special Copyright , Oracle and/or its affiliates. All rights reserved. xxv

26 Preface characters such as %, &, or+. You create new data items using system codes You cannot change the alias. Document Type Dual Currency Ledger Type Ledger Type IPI Taxable Roll Up FIFO Layers Subledger Type Transaction Nature Enter a user defined code (00/DT) that identifies the type of document. This code also indicates the origin of the transaction. Oracle has reserved document type codes for vouchers, invoices, receipts, and time sheets, which create automatic offset entries during the post program. (These entries are not self-balancing when you originally enter them.) The following document types are defined by Oracle and should not be changed: P: Accounts Payable R: Accounts Receivable T: Payroll I: Inventory O: Purchase Order Processing J: General Accounting/Joint Interest Billing S: Sales Order Processing Enter the ledger type (UDC 09/LT) that the system uses for dual currency when dual currency is activated. If you leave this processing option blank, the system uses the XA ledger type for dual currency. Enter a user defined code (09/LT) that specifies the type of ledger, such as AA (Actual Amounts), BA (Budget Amount), or AU (Actual Units). You can set up multiple, concurrent accounting ledgers within the general ledger to establish an audit trail for all transactions. Enter the amount on which IPI taxes are assessed. Enter whether the system rolls up the remaining FIFO layers for year-end processing. For LIFO valuations, the system always rolls up all layers at the end of the year into a single layer for the opening balance for the next year. If you want the FIFO valuations to roll up into one layer, enter 1 in this option. Otherwise, the system does not roll up the FIFO valuations into one layer. Values are: Blank: Do not roll up remaining FIFO layers. 1: Roll up remaining FIFO layers. Enter a user defined code (00/ST) that is used with the Subledger field to identify the subledger type and how the system performs subledger editing. On the User Defined Codes form, the second line of the description controls how the system performs editing. This is either hard-coded or user defined. Values are: A: Alphanumeric field, do not edit. N: Numeric field, right justify and zero fill. C: Alphanumeric field, right justify and blank fill. Enter a three-character code that for tax purposes, identifies a type of transaction. To enter values for the Transaction Nature code, use the following convention: X.YY X defines the origin of the transaction (inbound or outbound). Values for X are: xxvi Copyright , Oracle and/or its affiliates. All rights reserved.

27 Preface Version ID View Number 1: Inbound, inside the state. 2: Inbound, other states. 3: Inbound, import. 5: Outbound, inside state. 6: Outbound, other states. 7: Outbound, export. YY defines the transaction as a whole, such as a sales transaction. Examples of Transaction Nature codes: 511 In-state-sale 611 Out-of-state sale Enter the version of the GL journal entry program that the system uses. If you leave this processing option blank, the system uses version ZJDE0001. Enter a number from 1 to 10 that specifies how the system posts records from the Account Ledger table (F0911) to the Cost Analyzer Balances table (F1602). This number also specifies which managerial accounting posting code (PM01- PM10) in the F0911 table to update as posted. For example, if the view number is 1, then the system updates PM01 with P when the F0911 record is marked as being posted. Copyright , Oracle and/or its affiliates. All rights reserved. xxvii

28 Preface xxviii Copyright , Oracle and/or its affiliates. All rights reserved.

29 CHAPTER 1 Getting Started with JD Edwards EnterpriseOne Advanced Cost Accounting This chapter discusses: JD Edwards EnterpriseOne Advanced Cost Accounting overview. JD Edwards EnterpriseOne Advanced Cost Accounting business processes. JD Edwards EnterpriseOne Advanced Cost Accounting integrations. JD Edwards EnterpriseOne Advanced Cost Accounting implementation. JD Edwards EnterpriseOne Advanced Cost Accounting Overview The JD Edwards EnterpriseOne Advanced Cost Accounting system from Oracle provides a foundation for managerial accounting and activity-based costing. The JD Edwards EnterpriseOne Advanced Cost Accounting foundation includes fully integrated building blocks that are designed around business processes. JD Edwards EnterpriseOne Advanced Cost Accounting enables you to analyze data using traditional cost accounting, activity-based costing, or a combination of the two. You can combine traditional cost accounting and activity-based costing for greater flexibility in managing a business. Traditional accounting and activity-based costing differ in that activity-based costing is not required to follow Generally Accepted Accounting Principals (GAAP). In activity-based costing, debits do not have to equal credits. You can focus on a segment of the business instead of the entire business. Typically, you use activity-based costing when a more accurate allocation of indirect expense-to-cost object is required. In general, cost objects are divided into two major categories: customer and product. You can determine the level of detail for customer and product based on the needs of the business. Managerial accounting provides the information that managers of economic organizations use to plan and control their operations. It analyzes an organization at the profit center level rather than at the organizational level used in financial accounting. For example, managerial accounting analyzes customer and product information rather than organizational levels such as marketing, administration, and manufacturing. In managerial accounting systems, traditional financial accounting systems provide databases that are used in modeling, simulation, and "what-if" analyses. Allocations are run over indirect cost pools to assign all revenues and expenses to the profit center level. This process provides the information that is necessary to make high-level decisions about product lines, customer profitability, marketing strategies, reorganizations, and cost reduction projects. Copyright , Oracle and/or its affiliates. All rights reserved. 1