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When you define your departments, you assign the resources available in each department and the shifts that each resource is available. For each operation you define, you specify a department and list of resources and usages. An operation can use any resource that is available in the department, but you do not need to use all resources assigned to the department.

Prerequisites

   Before you can define resources, set up your units of measure and unit of measure conversion rates. Some resources may represent currency such as a fixed charge resource, but currency resources cannot be scheduled since their unit of measure is not time-based.

   Set the site level profile option BOM: Hour UOM to hold the unit of measure that represents an hour. Oracle Work in Process prevents you from scheduling resources whose unit of measure is not in the same unit of measure class as the hour unit or measure and has no conversions defined to the hour unit or measure.

   To define a resource:

1. Navigate to the Resources window.

2. Enter a resource name unique to the organization to describe the resource. For example, you could assign AS1 to signify assembler grade 1, or WE for welder.

3. Optionally, enter an inactive date after which you can no longer assign this resource.

4. Select a resource type: Amount, Currency (the set of books currency as defined in Oracle General Ledger), Machine, Miscellaneous, Person, or physical Space.

5. Enter a unit of measure (UOM) that describes how you measure the resource. (You can only update this if the BOM: Update Resource UOM profile option is set to Yes.)

6. Select a charge type. When an operation is completed, Oracle Work in Process records the units applied to the job or repetitive schedule in the resource unit of measure for all resources you charge manually or automatically. See: Charge Types.

7. Select a basis type by which to charge and schedule the resource.

Item: Charge and schedule the resource where the resource usage quantity is the amount required per assembly unit you make.

Lot: Charge and schedule the resource where the resource usage quantity is the amount required per job or schedule.

8. Select an expenditure type for this resource.

If the Project Cost Collection Enabled parameter is set in the Organization Parameters window, you must associate the resource with an expenditure type. See: Organization Parameters Window and Defining Project Information.

You can only select expenditure types that belong to the Work in Process expenditure type class. Expenditure types are defined in Oracle Projects. See: Expenditure Type Classes, Expenditure Types,and Defining Expenditure Types.

9. Indicate whether to enable the outside processing resource, and if so, enter its item number.

Attention: If you specify PO Move or PO Receipt, Oracle Purchasing uses this item when it creates requisitions for your outside processing resource. See: Overview of Shop Floor Control. See: Outside Processing

10. Enable the Costed check box to collect and assign costs to this resource, and if so, optionally enter an activity for the resource.

You cannot view costing information if the Privilege To View Cost Information function is excluded from the responsibility. You cannot update costing information if, in addition, the Privilege To Maintain Cost Information function is excluded.

You can use activities to group resource charges for cost reporting purposes. See: Defining Activities and Activity Costs.

11. If the resource is costed, indicate whether to charge jobs and repetitive schedules based on a standard rate you define.

Or, disable Standard Rate to enter a rate to charge the resource in Work in Process for an internal resource, or derive the rate from the purchase order for an outside processing resource. For outside processing resources, if you charge a job or repetitive schedule at the standard rate, a purchase price variance is computed and posted to the rate variance account. If you charge for all other resources, if you charge a job or repetitive schedule at the actual rate, a resource rate variance is computed and posted to the rate variance account.

12. If this resource is costed, enter an absorption account (general ledger account) used to offset resource charges earned in work in process.

At period end, you normally compare this account to the resource charges in the general ledger.

For outside processing resources, the default is the receiving valuation account from Oracle Purchasing, as defined in the receiving options.

Attention: For outside processing resources, do not change the default receiving valuation account. When you receive an outside processing purchase order, Oracle Purchasing credits the inventory AP accrual account, and debits the receiving valuation account. Bills of Material then debits the work in process outside processing account and credits the receiving valuation account. If you change the above default account, your receiving valuation account will have an incorrect balance.

13. If this resource is costed, enter a variance account (general ledger account) to accumulate resource rate variances for a job or repetitive schedule. For outside processing resources, this is the purchase price variance account.

   To define cost type and resource rate associations:

1. Navigate to the Resource Costs window. Do this by choosing the Rates button from the Resources window.

Note: You cannot view costing information if the Privilege To View Cost Information function is excluded. You cannot update costing information if, in addition, the Privilege To Maintain Cost Information function is excluded.

2. Enter or select a cost type to associate with each resource overhead rate.

3. Enter the Resource Unit Cost, that is, the resource's current standard cost per UOM.

   To associate overheads with resources:

1. Navigate to the Resource Overhead Associations window. Do this by choosing the Overheads button from the Resources window.

Note: You cannot view costing information if the Privilege To View Cost Information function is excluded from the responsibility. You cannot update costing information if, in addition, the Privilege To Maintain Cost Information function is excluded.

2. Enter or select the cost type for the resource.

The Allow Updates check box indicates whether the cost type is defined as updatable.

3. Enter or select the overhead to associate with the resource.

For example, you could assign resource cost as dollars per hour. If you enter a new resource, you can directly enter a frozen unit cost. However, you cannot directly update the frozen unit cost for a previously entered resource.

See Also

Defining a Cost Type

Setting Up Inventory Standard Costing

Cost Management Profile Options and Security Functions

Resource Report