Defining a Resource
Use resources to define the time an assembly spends at an operation and the cost you incur at the operation. A resource is anything you require to perform, schedule, or cost, including but not limited to: employees, machines, outside processing services, and physical space. A resource and usage rate for all scheduled activities is required in a routing. Scheduled resources can include queue, setup, run, and move time.
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.
3. Optionally, enter an inactive date after which you can no longer assign this resource.
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.)
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.
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.
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.
At period end, you normally compare this account to the resource charges in the general ledger.
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.
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.
To associate overheads with resources:
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.
The Allow Updates check box indicates whether the cost type is defined as updatable.
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 Department
Defining a Cost Type
Setting Up Inventory Standard Costing
Cost Management Profile Options and Security Functions
Resource Report