STANDARD COST ROLLUP A TUTORIAL Prepared by Oracle Applications Manufacturing BDE Author: Sanjeev Kale Creation Date: May 12, 2004 Last Updated: May 24, 2004 Copyright 2002 Oracle Corporation All Rights Reserved Page 1
INTRODUCTION... 3 PRACTICE DATA... 4 Items... 4 Department, Resources and Overheads... 5 Routings... 5 Bills of Material... 6 DEFINE ITEMS... 7 COST TYPE... 10 BASIS TYPE... 11 MATERIAL OVERHEAD... 13 PURCHASED ITEMS COST... 14 DEFINE RESOURCES... 18 OVERHEADS... 20 DEFINE DEPARTMENTS... 21 DEFINE ROUTINGS... 26 DEFINE BILL OF MATERIALS (BOM)... 27 ASSEMBLY COST... 29 COST UPDATE... 34 INVENTORY TRANSACTIONS... 36 WIP TRANSACTIONS... 38 Page 2
INTRODUCTION The purpose of the document is to walk you through the set up and understanding of Standard Cost Rollup. I have made certain assumptions while writing this. They are as follows You are using 11.5.9 version of Oracle Application. This data has been tested and works on Vision Database. This tutorial will also help you understand the following beside the Standard Cost Rollup and Cost update. Use of XML in Item Imports BOM business objects API Routings API Page 3
PRACTICE DATA Items MASTER ITEMS M1 - ORG ITEMS COST DETAILS Item Description Template Type xx-mb2xr Xtreme Mountain Bike Finished Goods WIP Supply Type Build in WIP Push Yes Material Cost Material Overhea d Basis Rate/Am ount xx-frame 6061 Aluminum Frame Purchased Item xx-tires Kevlar Tires Purchased Item xx-fork Front Suspension Purchased Fork Item xx-bars Titanium Purchased HandleBars Item Operation Pull No 250.00 Total Value Push No 30.00 Total Value Assembly No 110.00 Total Pull Value Push No 40.00 Total Value 0.05 0.05 0.05 0.05 xx-comp Components Kit Phantom Item xx-derail Front/Rear Purchased Derailleur Item xx-brakes Front/Rear V- Purchased brakes Item xx-saddle Padded Gel Seat Purchased Item Phantom No Operation Pull Operation Pull Operation Pull No 60.00 No 80.00 No 45.00 Total Value Total Value Total Value 0.05 0.05 0.05 Page 4
Department, Resources and Overheads Dept Description Resource Resource Description xxmfg xxqlty Manufacturing Department Quality Department xxasmblr Bike Assembler XxSpec Spec Check Computer xxtester Test Rider / Inspector Type Basis UOM Chrg Type Person Item HR WIP Move Machine Item HR WIP Move Person Item HR WIP Move Cst Std Rate Res Unit Cost Y Y 10 8 Y Y 40 8 Y Y 15 8 Units Overhead Cost Element Description xx-benefit Overhead Overhead for Personnel xx-utility Overhead Overhead for Machine Absorption Account 01-000-1420-0000-000 01-000-1420-0000-000 Default Basis Resource Value Resource Value Routings Routing Description Op Dept Res. Resource Usage Standard Schedule Seq Seq Rate xx-mb2xr Xtreme Mountain Bike 100 xxmfg 100 xxasmblr 0.5 Yes Yes 200 xxqlty 100 xxspec 0.5 Yes Yes 200 xxtester 1 Yes Yes Page 5
Bills of Material Item/Bom Description Item Seq Op. Seq Quantity Supply Type xx-comp Components Kit xx-derail Front/Rear Derailleur 10 1 1 Operation Pull xx-brakes Front/Rear V-brakes 20 1 2 Operation Pull xx-saddle Padded Gel Seat 30 1 1 Operation Pull Sub Inventory Stores Stores Stores Include in Roll up Yes Yes Yes xx-mb2xr Xtreme Mountain Bike xx-frame 6061 Aluminum Frame 10 100 1 Operation Stores Yes Pull xx-tires Kevlar Tires 20 100 2 Push Stores Yes xx-fork Front Suspension Fork 30 100 1 Assembly Stores Yes Pull xx-bars Titanium HandleBars 40 100 1 Push Stores Yes xx-comp Components Kit 50 100 1 Phantom Stores Yes Page 6
DEFINE ITEMS MASTER ITEMS M1 - ORG ITEMS COST DETAILS Item Description Template Type xx-mb2xr Xtreme Mountain Bike Finished Goods WIP Supply Type Build in WIP Push Yes Material Cost Material Overhea d Basis Rate/Am ount xx-frame 6061 Aluminum Frame Purchased Item xx-tires Kevlar Tires Purchased Item xx-fork Front Suspension Purchased Fork Item xx-bars Titanium Purchased HandleBars Item Operation Pull No 250.00 Total Value Push No 30.00 Total Value Assembly No 110.00 Total Pull Value Push No 40.00 Total Value 0.05 0.05 0.05 0.05 xx-comp Components Kit Phantom Item xx-derail Front/Rear Purchased Derailleur Item xx-brakes Front/Rear V- Purchased brakes Item xx-saddle Padded Gel Seat Purchased Item Phantom No Operation Pull Operation Pull Operation Pull No 60.00 No 80.00 No 45.00 Total Value Total Value Total Value 0.05 0.05 0.05 1. Open the mfgcst.xml file using the notepad or wordpad and Replace all XX- with your two lettered initials. (in my case it would be SK) 2. ftp the following files that are available along with this document to the respective directories. mtiapi.sql to the user home directory. Page 7
mfgcst.xml to /usr/tmp directory. (to a directory which is defined by utl_file_dir paramater) 3. Run the following script from the user home directory. sqlplus appsusername/passowrd @mtiapi.sql You will get the following message Number of records inserted 18 PL/SQL procedure successfully completed. exit Will get you out of the sqlplus session. 4. The Above process would have populated the MTL_SYSTEM_ITEMS_INTERFACE table. 5. Login in the Application can Navigate to Inventory Items Import Import Items take the default parameters which are as follows All Organizations = Yes Validate Items = Yes Process Items = Yes Delete Processed Items = Yes Process Set (Null for all) = Create or Update Items = 1 (Create New Items) 6. Verify Import Items request completes successfully. 7. Naviagate to Inventory Items Master Items click on the flash light and in the Items field in the Find Master Items window enter the following XX-A% XX-Z% and click on find and verify the the items are populated in the V1 and M1 organization with the appropriate item attributes as specified in the above table (Except Cost details which we will later). Page 8
You can also verify the results with the following SQL COL DESCRIPTION FORMAT A25 COL SEGMENT1 FORMAT A10 COL MEANING HEADING "WIP_SUPPLY_TPYE" FORMAT A15 SELECT Organization_id ORG, Segment1, MTI.DESCRIPTION, BUILD_IN_WIP_FLAG, MEANING FROM MTL_SYSTEM_ITEMS MTI, MFG_LOOKUPS ML WHERE SEGMENT1 BETWEEN 'SK-A%' AND 'SK-Z%' AND WIP_SUPPLY_TYPE = LOOKUP_CODE AND LOOKUP_TYPE = 'WIP_SUPPLY' ORDER BY 1,2; ORG SEGMENT1 DESCRIPTION B WIP_SUPPLY_TPYE ---------- ---------- ------------------------- - --------------- 204 SK-BARS Titanium Handlebars N Push 204 SK-BRAKES Front-Rear V-Brakes N Operation Pull 204 SK-COMP Components Kit N Phantom 204 SK-DERAIL Front-Rear Derailleurs N Operation Pull 204 SK-FORK Front Suspension Fork N Assembly Pull 204 SK-FRAME 6061 Aluminum Frame N Operation Pull 204 SK-MB2XR Xtreme Mountain Bike Y Push 204 SK-SADDLE Padded Gel Seat N Operation Pull 204 SK-TIRES Kevlar Tires N Push 207 SK-BARS Titanium Handlebars N Push 207 SK-BRAKES Front-Rear V-Brakes N Operation Pull 207 SK-COMP Components Kit N Phantom 207 SK-DERAIL Front-Rear Derailleurs N Operation Pull 207 SK-FORK Front Suspension Fork N Assembly Pull 207 SK-FRAME 6061 Aluminum Frame N Operation Pull 207 SK-MB2XR Xtreme Mountain Bike Y Push 207 SK-SADDLE Padded Gel Seat N Operation Pull 207 SK-TIRES Kevlar Tires N Push Page 9
COST TYPE 1. Define the cost type. This will be the cost type where we will collect the costs. (Navigation) Cost Setup Cost Types Name XX-CSTMTB Description Cost Type for Mountain Bike Accept the form defaults except for the following: Previous Level Rollup Options Enable all of these options with x. Make sure that the default cost type is frozen. Save your work Action Save Close Window. Page 10
BASIS TYPE The following table details the basis types available for use with each subelement. Allocation Charge Methods SUBELEMENT BASIS TYPE Material Material Resource OSP Overhead Overhead Activity X Item X X X X X Lot X X X X X Resource Units X X Resouce Value X X Total Value X Activity Use the Activity basis type to assign an acitivity cost to an item. An activity is an action or task that you perform ina business that uses a resouce or incur cost. For material overhead subelements, the cost per item is calculated within each cost type as follows: Cost per item = (Activity occurences / Number of items ) * Activity rate Item Lot You use the item basis type to assign a fixed cost per item. For material and material ovehead subelements, you define a fixed amount per item For resource, Outside Processing (OSP), and Overhead subelemt, you can define a fixed per item moved through an operation. You use the lot basis type to assign a lot charge per item or operation. For material and material overhead subelements, the cost per item is calculated within each cost type as follows Cost per item = Rate or amount a / Item s costing lot size. Page 11
For resource, Outside Processing, and Overhead subelement, the cost per item is calculated within each cost type as follows Cost per item = Routing usage * Rate or amount * 1 / Item s costing lot size Resource Units You use Resource Units basis type to allocate overhead to an item based on the number of resource units. For material overhead and overhead subelements, the cost per item is calculated within each cost type as follows: Cost per item = Overhead rate * No of resource units earned in routing operation Resource Value You use Resource Value basis type to allocate overhead to an item based on a percentage of the resource value. For material overhead and overhead subelements, the cost per item is calculated within each cost type as follows: Cost per item = Overhead rate * Resource values earned in the routing operation Total Value You use Total Value basis type to allocate overhead to an item based on a percentage of the total value. For material overhead, the cost per item is calculated within each cost type as follows: Cost per Item = Total cost Material overhead earned at this level * Material overhead rate Page 12
MATERIAL OVERHEAD 1. Check to make sure that your sub-element for material is MATERIAL (Navigation) Cost Setup Sub-Elements Material You are checking here to make sure that your sub-element says MATERIAL. Close Window. 2. Now setup sub-element for material overhead. (Navigation) Cost Setup Sub-Elements Overheads Overhead XX-MTBOH Cost Element Material Overhead Description Material Overhead for Bikes Absoption Account 01-000-1420-0000-000 Default Basis Total Value Default Activity Inactive on Save your work Action Save Close Window. Page 13
PURCHASED ITEMS COST Now we will define item costs for the purchased Items and the assembled item s Material Overhead. The buyers have told you the purchased standard costs are as follows XX-FRAME = $250.00 XX-TIRES = $30.00 XX-FORK = $110.00 XX-BARS = $40.00 XX-DERAIL = $60.00 XX-BRAKES = $80.00 XX-SADDLE = $45.00 1. Enter your Item Costs (Navigation) Cost Item Costs Item Costs Click on New Item XX-FRAME Cost Type XX-CSTMTB Base on Rollup No (for Purchased items) Click on Costs button Note : Each part must be entered seperately Page 14
Cost Element Material Sub-Element MATERIAL Activity Basis Item Rate Amount 250.00 Cost Element Material Overhead Sub-Element XX-MTBOH Activity Basis Total Value Rate Amount 0.05 Save your work Action Save Close Window. Add a New record Repeat the process for other Purchased Items. 2. Enter Manufacturing Item Cost Item XX-MB2XR Cost Type XX-CSTMTB Base on Rollup No (for Purchased items) Save your work Action Save Page 15
Close Window. Add a New record Repeat the process for other Purchased Items. Verify the costs of your items XX-FRAME = $262.50 XX-TIRES = $31.50 XX-FORK = $115.50 XX-BARS = $42.00 XX-DERAIL = $63.00 XX-BRAKES = $84.00 XX-SADDLE = $47.25 Page 16
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DEFINE RESOURCES 1. Create resources using the following table Dept Description Resource Resource Description xxmfg xxqlty Manufacturing Department Quality Department xxasmblr Bike Assembler XxSpec Spec Check Computer xxtester Test Rider / Inspector Type Basis UOM Chrg Type Person Item HR WIP Move Machine Item HR WIP Move Person Item HR WIP Move Cst Std Rate Res Unit Cost Y Y 10 8 Y Y 40 8 Y Y 15 8 Units (Navigation) Bills Of Material Routings Resources Resource XXAsmblr Description Bike Assembler Type Person UOM HR Charge Type WIP Move Basis Item Costed Yes Standard Yes Absorption Account 01-520-5360-0000-000 Variance Account 01-520-5360-0000-000 Click on the Rates Button Cost Type XX-CSTMTB Resource Unit Cost 10.00 Save your work Page 18
Action Save Add a New record Repeat this for XXSpec and XXTester with the correct Type and Resource Unit cost specified in the above table. Page 19
OVERHEADS Enter the overheads that will be recovered by your resources. One of the overheads will be used to absorb any costs associated with payroll costs. The other overhead is used to recover the cost of utilities absorbed by the machines. 1. Setup a sub-element for resource overhead (Navigation) Cost Setup Sub-Elements Overheads Overhead SK-BENEFIT Cost Element Overhead Description Overhead for Personnel Absorption Account 01-000-1420-0000-000 Default Basis Resource Value Defalut Acitivity Inactive on Save your work Action Save Add a New record Overhead SK-UTILITY Cost Element Overhead Description Overhead for Machine Absorption Account 01-000-1420-0000-000 Default Basis Resource Unit Defalut Acitivity Inactive on Save your work Action Save Close Form. Page 20
DEFINE DEPARTMENTS 1. Create departments using the following table Dept Description Resource Resource Description XxMFG XxQLTY Manufacturing Department Quality Department xxasmblr Bike Assembler XxSpec Spec Check Computer xxtester Test Rider / Inspector Type Basis UOM Chrg Type Person Item HR WIP Move Machine Item HR WIP Move Person Item HR WIP Move Cst Std Rate Res Unit Cost Y Y 10 8 Y Y 40 8 Y Y 15 8 Units (Navigation) Bill of Material Routings Departments Department XXMfg Description Manufacturing Department Class Click on Resources button Resource XXAsmblr Available 24 Hours Yes (Box checked) Share No Units 8 Save your work Action Save Close Form. Click on Rates button Cost Type XX-CSTMTB Page 21
Overhead XX-BENEFIT Activity Basis <default> (Resource value) Rate 0.05 Click on the next line below the overhead Overhead XX-UTILITY Activity Basis <default> (Resource Unit) Rate 10 Save your work Action Save Close Form. New Record Department XXQlty Description Quality Department Class Page 22
Click on Resources button Resource XXSpec Available 24 Hours Yes (Box checked) Share No Units 8 Click on the next line Resource XXTester Available 24 Hours Yes (Box checked) Share No Units 8 Save your work Action Save Close Form. Click on Rates button Cost Type XX-CSTMTB Overhead XX-BENEFIT Activity Basis <default> (Resource value) Rate 0.05 Click on the next line below the overhead Page 23
Overhead XX-UTILITY Activity Basis <default> (Resource Unit) Rate 10 Save your work Action Save Close Form. 2. Connect the Overheads to the Resources (Navigation) Bill of Material Routings Resources Click the flashlight on the toolbar. Select your XXAsmblr resource Click the Overheads button Cost Type XX-CSTMTB Overhead XX-BENEFIT Save your work Action Save Close Form. Page 24
Click the flashlight on the toolbar. Select your XXSpec resource Click the Overheads button Cost Type XX-CSTMTB Overhead XX-UTILITY Save your work Action Save Close Form. Click the flashlight on the toolbar. Select your XXTester resource Click the Overheads button Cost Type XX-CSTMTB Overhead XX-BENEFIT Save your work Action Save Close Form. Page 25
DEFINE ROUTINGS 1. Create a routing for item xx-mb2xr using the following tables Routing Description Op Dept Res. Resource Usage Standard Schedule Seq Seq Rate xx-mb2xr Xtreme Mountain Bike 100 xxmfg 100 xxasmblr 0.5 Yes Yes 200 xxqlty 100 xxspec 0.5 Yes Yes 200 xxtester 1 Yes Yes 2 Open the rtglist.txt file using the notepad or wordpad and Replace all XX with your two lettered initials. (in my case it would be SK) 3 ftp the following files that are available along with this document to the respective directories. rtgapi.sql to the user home directory. rtglist.txt to /usr/tmp directory. (to a directory which is defined by utl_file_dir paramater) 4 Run the following script from the user home directory. sqlplus appsusername/password @rtgapi.sql You Will get the following message v_dept_code SKMfg v_organizationcode M1 v_itemname SK-MB2XR v_dept_code SKQlty v_organizationcode M1 v_itemname SK-MB2XR Return Status = S (Return Status S = Successful Otherwise you will get error message) Message Count = 0 PL/SQL procedure successfully completed. 5 Verify Routings by going to (Navigation) Bill of Material Routings Routings. Page 26
DEFINE BILL OF MATERIALS (BOM) 1. Create the Bill of Material using the following table. Item/Bom Description Item Seq Op. Seq Quantity Supply Type xx-comp Components Kit xx-derail Front/Rear Derailleur 10 1 1 Operation Pull xx-brakes Front/Rear V-brakes 20 1 2 Operation Pull xx-saddle Padded Gel Seat 30 1 1 Operation Pull Sub Inventory Stores Stores Stores Include in Roll up Yes Yes Yes xx-mb2xr Xtreme Mountain Bike xx-frame 6061 Aluminum Frame 10 100 1 Operation Stores Yes Pull xx-tires Kevlar Tires 20 100 2 Push Stores Yes xx-fork Front Suspension Fork 30 100 1 Assembly Stores Yes Pull xx-bars Titanium HandleBars 40 100 1 Push Stores Yes xx-comp Components Kit 50 100 1 Phantom Stores Yes 2 Open the bomlist.txt file using the notepad or wordpad and Replace all XX with your two lettered initials. (in my case it would be SK) 3 ftp the following files that are available along with this document to the respective directories. bomapi.sql to the user home directory. bomlist.txt to /usr/tmp directory. (to a directory which is defined by utl_file_dir paramater) 4 Run the following script from the user home directory. sqlplus appsusername/password @bomapi.sql You Will get the following message Page 27
Return Status = S Message Count = 0 Return Status = S Message Count = 0 PL/SQL procedure successfully completed. 1. Verify BOM by going to (Navigation) Bill of Material Bills Bills or Indented Bills Page 28
ASSEMBLY COST We have completed the setup and now we want to rollup the costs we have just created for this Bill of Material. Please look at the following table, which will give you a brief understanding as to how the cost roll is calculated. We will verify this with the result we get from the Assembly Cost Rollup program. COST ELEMENTS SUB ITEM / RESOURCE BASIS CALCULATION TOTAL ELEMENTS Material Material xxframe Item 250 x 1 250.00 xxtire Item 30 x 2 60.00 xxfork Item 110 x 1 110.00 xxbars Item 40 x 1 40.00 xxderail Item 60 x 2 120.00 xxbrake Item 80 x 2 160.00 xxsaddle Item 45 x 1 45.00 Material OH MTBOH xxframe Total Value 5% of 250 12.50 xxtire Total Value 5% of 60 3.00 xxfork Total Value 5% of 110 5.50 xxbars Total Value 5% of 40 2.00 xxderail Total Value 5% of 120 6.00 xxbrake Total Value 5% of 160 8.00 xxsaddle Total Value 5% of 45 2.25 Resource Asmblr Item.5 hr x $10 5.00 Spec Item.5 hr x $40 20.00 Tester Item 1 hr x $15 15.00 OverHead Benefit Asmblr Resource Value 5% of $5 0.25 Utility Spec Resource Unit $10 x.5 hr 5.00 Benefit Spec Resource Value 5% of $ 15 0.75 TOTAL UNIT COST (Do the cost rollup and compare to this) 870.25 Page 29
1. (Navigation) Cost Item Costs Assembly Cost Rollup Request Name Cost Rollup Print Report Cost Type XX-CSTMTB Rollup Option Full Cost Rollup Range Specific Item Report Type Detail Indented Material Detail Yes Material Overhead Detail Yes Routing Detail Yes Report Number of Level 10 Effectivity Date Today s Date Include Unimplemented ECOs No Alternate Bill Alternate Routing Engineering Bills No Specific Item XX-MB2XR Let the report complete and the report will look as follows Page 30
Seattle Manufacturing Report Date: 13-MAY-2004 13:00 Bills of Material Indented Cost Report Page: 1 Cost Type: SK-CSTMTB (USD) Revision Date: 2004/05/13 23:5 Alternate BOM: Alternate Routing: Assembly: SK-MB2XR Xtreme Mountain Bike Category: NEW.MISC UOM: Ea Include in Rollup Based on Rollup Asset/Costed Op Item/ Description/ Last Make Yield/ Quantity/ Shrink/ Extended Qty/ Item Unit Cost/ Level Seq Cost Element Sub-Elem Department Rev Buy Phtm Basis UOM Rate or Amount Basis Factor Rate or Amount Res Unit Cost Extended Cost ----------- ---- --------------- -------------- ---------- ---- ---- ---- ---- ---- ---- ---------- --- -------------- ------------ -------------- ---------------- --------------- 0 SK-MB2XR Xtreme Mountain Bike A Make Yes Yes No Ea 1.00 0.00 1.00 870.25000 100 Resource SKAsmblr SKMfg Yes Item+ HR 0.50 1.00 0.50 10.00000 5.00000 100 Overhead SK-BENEFIT SKMfg Res value USD 0.05 5.00 0.05 0.25000 200 Resource SKSpec SKQlty Yes Item+ HR 0.50 1.00 0.50 40.00000 20.00000 200 Overhead SK-UTILITY SKQlty Res units USD 10.00 0.50 10.00 5.00000 200 Resource SKTester SKQlty Yes Item+ HR 1.00 1.00 1.00 15.00000 15.00000 200 Overhead SK-BENEFIT SKQlty Res value USD 0.05 15.00 0.05 0.75000.1 100 SK-FRAME 6061 Aluminum Frame A Buy Yes No Yes No 1.00 Ea 1.00 0.00 1.00 262.50000 Material MATERIAL Item+ USD 250.00 1.00 250.00 250.00000 Material Over SK-MTBOH Ttl value USD 0.05 250.00 0.05 12.50000.1 100 SK-TIRES Kevlar Tires A Buy Yes No Yes No 1.00 Ea 2.00 0.00 2.00 31.50000 Material MATERIAL Item+ USD 30.00 1.00 60.00 60.00000 Material Over SK-MTBOH Ttl value USD 0.05 60.00 0.05 3.00000.1 100 SK-FORK Front Suspension Fork A Buy Yes No Yes No 1.00 Ea 1.00 0.00 1.00 115.50000 Material MATERIAL Item+ USD 110.00 1.00 110.00 110.00000 Material Over SK-MTBOH Ttl value USD 0.05 110.00 0.05 5.50000.1 100 SK-BARS Titanium Handlebars A Buy Yes No Yes No 1.00 Ea 1.00 0.00 1.00 42.00000 Material MATERIAL Item+ USD 40.00 1.00 40.00 40.00000 Material Over SK-MTBOH Ttl value USD 0.05 40.00 0.05 2.00000.1 100 SK-COMP Components Kit A Make Yes Yes Yes Yes 1.00 Ea 1.00 0.00 1.00 341.25000..2 1 SK-DERAIL Front-Rear Derailleurs A Buy Yes No Yes No 1.00 Ea 2.00 0.00 2.00 63.00000 Material MATERIAL Item+ USD 60.00 1.00 120.00 120.00000 Material Over SK-MTBOH Ttl value USD 0.05 120.00 0.05 6.00000..2 1 SK-BRAKES Front-Rear V-Brakes A Buy Yes No Yes No 1.00 Ea 2.00 0.00 2.00 84.00000 Material MATERIAL Item+ USD 80.00 1.00 160.00 160.00000 Material Over SK-MTBOH Ttl value USD 0.05 160.00 0.05 8.00000..2 1 SK-SADDLE Padded Gel Seat A Buy Yes No Yes No 1.00 Ea 1.00 0.00 1.00 47.25000 Material MATERIAL Item+ USD 45.00 1.00 45.00 45.00000 Material Over SK-MTBOH Ttl value USD 0.05 45.00 0.05 2.25000 --------------- 870.25000 =============== Page 31
Cost Element Standard Cost Report Value Difference Percent -------------------- ---------------- ---------------- ---------------- ---------- Material 0.00000 785.00000-785.00000 0.0 Material Overhead 0.00000 39.25000-39.25000 0.0 Resource 0.00000 40.00000-40.00000 0.0 Outside Processing 0.00000 0.00000 0.00000 0.0 Overhead 0.00000 6.00000-6.00000 0.0 ---------------- ---------------- ---------------- ---------- Total 0.00000 870.25000-870.25000 ================ ================ ================ Page 32
2. To view the cost (Navigation) Cost Item Costs Item XX-MB2XR Cost Type XX-CSTMTB Click on the Find button Oracle Cost Management R11i (Release 11.5.9) Page 33
COST UPDATE 1. First let s examine the Frozen costs. (Navigation) Cost Item Costs Item XX-MB2XR Cost Type Frozen Click on the Find button Click on the Costs button In this case there should not be any costs. This is what we will be updating with the cost update. 2. (Navigation) Cost Item Costs Standard Cost Update Update Costs Request Name Update Standard Costs Cost Type XX-CSTMTB Adjustment Account Std Cost Var (Account alias) Description Update MB2XR Costs Item Range All Items Sort Option <accept default> Update Option Overhead, Resource, Activity, and Item Costs Specific Item tab through (Click Ok) Save Details Yes 3. Verify the Frozen Costs Page 34
(Navigation) Cost Item Costs Item XX-MB2XR Cost Type Frozen Click on the Find button Click on the Costs button In this case there should not be any costs. This is what we are updating with the cost update. Page 35
INVENTORY TRANSACTIONS 1. Perform the following miscellaneous transactions (Navigation) Inventory Transactions Miscellaneous Transactions Date Today s Date Type Miscellaneous Receipts Source Account 01-000-1110-0000-000 Click the Transaction Lines button Item Sub Inventory Quantity XX-FRAME Stores 1000 XX-TIRES Stores 1000 XX-FORK Stores 1000 XX-BARS Stores 1000 XX-DERAIL Stores 500 XX-BRAKES Stores 1000 XX-SADDLE Stores 100 Save your work Action Save 2. Now look up some of the Items in the inventory to make sure that the transaction was processed. (Navigation) Inventory On Hand Availability On Hand Quantity Item XX-TIRES Click the Find button and view the On-hand balances for the tires. Page 36
3. View the Material Transaction generated. Oracle Cost Management R11i (Release 11.5.9) (Navigation) Inventory Material Transactions Item XX-TIRES Click the Find button and review the Information, Click on the Distribution button. Review the Distribution Information. Page 37
WIP TRANSACTIONS 1. Create Job (Navigation) WIP Discrete Discrete Jobs Job XX-JOB1 Type Standard Assembly XX-MB2XR Description <default> UOM <default> Class Discrete Status Released Quantity 100 MRP Qty <default> Start Date Completion Date 4 weeks from today @ 23:55 Click in the Routing alternative region Completion Sub inventory FGI Save your work Action Save 2. Review the discrete job for your assembly (Navigation) WIP Discrete Discrete Jobs Job XX-JOB1 Click on the Find button. Click on the Open button. Page 38
Review the Job requirements, Operations, resources. Page 39
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3. Issue the Push Material to the Job (Navigation) WIP Material Transactions WIP Material Transactions Job XX-JOB1 Click on the Transact button. The push components should appear. Verify the quantities and click on the Done button. The Components should now be issued. Verify that the issues took place by going to View Discrete Jobs forms. In the View Discrete Jobs form, query up the XX-JOB1 and then click on Components button, select the Quantities alternative region. 4. Complete the following Move transaction, Move half of the assemblies from the Queue step of the 1 st Operation to the Run step of 1 st operation. This also lets the people know the job has started. (Navigation) WIP Move Transactions Move Transactions Job XX-JOB1 Transaction Type Move Seq From 100 Step Queue Seq To 200 Step Run Quantity 100 Click on the Save button. Verify the Move transactions took place by going to View Discrete Jobs forms. In the View Discrete Jobs form, query up the XX-JOB1 and then click on Operations button, select the Quantities alternative region. 5. Complete the assemblies using the easy completion. (Navigation) WIP Move Transactions Move Transactions Job XX-JOB1 Page 43
Transaction Type Complete Seq From 100 Step Run Seq To 200 Step To Move Quantity 100 Oracle Cost Management R11i (Release 11.5.9) Click on Save button. Verify the completions in Inventory by going to (Navigation) Inventory On-Hand, Availability On-Hand Quantity. Query the item XX-MB2XR. 6. Now that 100 quantity of XX-MB2XR s are complete, close the job so any excess charges can be booked to the variance. Close the Job. (Navigation) WIP Discrete Close Discrete Jobs Close Discrete Jobs (Form) Job XX-JOB1 Click on the Find button. Tools Close 1 click OK. A Close Discrete Jobs request will be submitted. Once the Request is complete, look at the Discrete Job Value Report (summary). It looks likes as follows. Page 44
Seattle Manufacturing Report Date: 14-MAY-2004 00:06 Discrete Job Value Report Page: 1 of 1 Summary (USD) Sort by: Job Job: SK-JOB1 Job Desc: Job Type: Standard Status: Closed Assembly: SK-MB2XR Revision: A 09-JUN-04 UOM: Ea Accounting Class: Discrete Start Quantity: 100.00 Start Date: 28-MAY-04 Class Type: Standard Discrete Quantity Completed: 100.00 Date Released: 13-MAY-04 Class Description: Discrete Job Class Quantity Scrapped: 0.00 Scheduled Completion Date: 10-JUN-04 Project: Project Name: Date Closed: 14-MAY-04 Period-To-Date Summary ---------------------- Elemental Single Level Variances Variances Element/Variance Accounts Costs Incurred Costs Relieved Relieved Relieved Period Activity --------------------- ------------------------- ---------------- ---------------- ---------------- ---------------- ---------------- Material 01-000-1410-0000-000 78,500.00 78,500.00 0.00 0.00 Material Overhead 01-000-1420-0000-000 3,925.00 3,925.00 0.00 0.00 Resource 01-000-1440-0000-000 4,000.00 4,000.00 0.00 0.00 Outside Processing 01-000-1450-0000-000 0.00 0.00 0.00 0.00 Overhead 01-000-1430-0000-000 600.00 600.00 0.00 0.00 Material Variance 01-520-5310-0000-000 0.00 Resource Variance 01-520-5312-0000-000 0.00 Outside Process Var 01-520-5370-0000-000 0.00 Overhead Variance 01-520-5330-0000-000 0.00 ---------------- ---------------- ---------------- ---------------- ---------------- Total Costs: 87,025.00 87,025.00 0.00 0.00 0.00 ================ ================ ================ ================ ================ Cumulative-To-Date Summary -------------------------- Elemental Single Level Variances Variances Element/Variance Accounts Costs Incurred Costs Relieved Relieved Relieved Period Activity --------------------- ------------------------- ---------------- ---------------- ---------------- ---------------- ---------------- Material 01-000-1410-0000-000 78,500.00 78,500.00 0.00 0.00 Material Overhead 01-000-1420-0000-000 3,925.00 3,925.00 0.00 0.00 Resource 01-000-1440-0000-000 4,000.00 4,000.00 0.00 0.00 Outside Processing 01-000-1450-0000-000 0.00 0.00 0.00 0.00 Overhead 01-000-1430-0000-000 600.00 600.00 0.00 0.00 Material Variance 01-520-5310-0000-000 0.00 Resource Variance 01-520-5312-0000-000 0.00 Outside Process Var 01-520-5370-0000-000 0.00 Overhead Variance 01-520-5330-0000-000 0.00 ---------------- ---------------- ---------------- ---------------- ---------------- Total Costs: 87,025.00 87,025.00 0.00 0.00 0.00 ================ ================ ================ ================ ================ Page 45
Review the data in the following forms as well. View Discrete Jobs forms (look at the resources and material requirements). (Navigation) WIP Discrete WIP Value Summary (look at the value and account distribution). Costs Incurred: Costs associated with material issues/returns, resource and overhead transactions of a job or repetitive schedule. Costs Relieved: Standard costs relieved by cost element when assemblies from a job or repetitive schedule are completed or scrapped. Variances Relieved: Variances relieved by cost elements when a job or accounting period is closed, or when a repetitive schedule is cancelled. Net Actitvity: Cost element net activity, the difference between the costs incurred and the costs and variances relieved. Page 46
This Level/Previous Level Elemental Costs: Elemental costs for manufactured items are kept at two levels: this level and previous level. This level costs are those costs incurred in producing the part at the current bill of material level. This level costs might include labor and overhead supplied to bring an assembly to a certain state of completion. Previous level costs are those incurred at lower levels. Previous level costs might include material and labor, and outside processing costs incurred to bring an item to its current state of completion. Totals costs for an item are calculated by summing the this level and previous level costs as shown in the following table. Page 47