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Overview of Resource Transactions

Resource charges can be transacted manually, with move or purchase order transactions, or imported from outside data sources or data collection devices. Resources are charged based upon their charge type: Manual, WIP Move, PO Receipt and PO Move. See: Resource Charge Types.

For all resources you charge either manually or automatically, Oracle Work in Process also records the units applied to the job or repetitive schedule, expressed in the unit of measure of the resource, when you complete an operation.

Actual Labor Charges

You can charge labor charges at actual in two ways. You can enter an actual rate for the resource using the Open Resource Transaction Interface, or you can use the Persons window. The system computes the resources variances accordingly.

Actual Outside Processing Charges

Outside processing resources can be charged at standard rate or actual. Oracle Purchasing computes purchase price variances accordingly.

Overhead Charging

Overhead costs are appropriately charged as you charge resources. You can define overheads to be charged based on Resource units or Resource value, Lot, or Item. Oracle Work in Process calculates the appropriate overhead charge as you charge the resource. Oracle Work Overhead charges are automatically reversed as you reverse underlying resource charges. See: Default Basis Types.

Resource Activity Charging

Activity-based costing can be used to record and track how you make and deliver items instead of measuring the cost of what goes into those items. You can use activities as a way to categorize the costs of certain manufacturing functions such as setup, teardown, inspection, and so on. See: Overview of Activity-Based Costing.

As you assign resources that are defined as costed to operations, you can associate activities with them. When you charge these resources, the system records the activity you defined for that resource. Once collected, you can analyze your costs on an activity basis. For example, you can use the activity "setup" to track the costs of all resources that perform setups in the production plant. Then as you track the cost of setup as part of your manufacturing process improvement program, you can easily review the actual resource charges for "setup" activities.

You can add or change activities when you add or change resource requirements at a routing operation using the Resource Requirements window. For example, if you needed to add a quality inspection resource to a routing to charge some extra inspection costs, you might use an "inspection" activity. Later when you analyze the cost of quality, you can review as charges for the "inspection" activity. You can also change the activity associated with a resource requirement when manually enter charge the resource using the Resource Transactions window. See: Defining Activities and Activity Costs and Assigning Operation Resources

See Also

Setting Up Resource Management

Resource Transaction Options

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