Working with Lean Accounting

This chapter provides overviews of lean manufacturing accounting and lean manufacturing accounting setup and discusses how to:

Run lean manufacturing accounting.
Process lean manufacturing variance accounting.
Run and review the Lean Production Cost Inquiry program.
Run the lean work-in-process (WIP) revaluation program.
Run the Item Ledger/Account Integrity report.
Review general ledger information.

Understanding Lean Manufacturing Accounting

In orderless accounting just as in manufacturing accounting you use a variety of tools to monitor costs that are generated during various manufacturing activities. The resulting information enables management to compare actual results to expected results. These are the differences between the two accounting methods:

Orderless accounting uses transaction IDs and production plans rather than work orders, as in manufacturing accounting.
The orderless solution is available for Standard Costing only.

Understanding Lean Manufacturing Accounting Setup

This section discusses:

Automatic accounting instructions (AAIs).
Document types.
Transaction progress.

AAIs

Orderless accounting can use all of the AAIs that are used by standard manufacturing accounting.

See Defining Manufacturing AAIs.

Document Types

Orderless accounting uses these document types that you set up in user-defined code (UDC) table 00/DT:

LM - Lean Material Issue.
LL - Lean Shop Floor.
LC - Lean Completion.
LP - Lean Scrap.
LO - Lean Component Scrap.
LV - Lean Variances.

Transaction Progress

The JD Edwards EnterpriseOne system from Oracle automatically tracks the progress of transactions with variances.

The system assigns values to each transaction, depending on the transaction's status:

Transaction has been created.
Lean Manufacturing Accounting has been run.
Lean Manufacturing Variance has been run and the transaction is kept open for further activities.
Lean Manufacturing Variance has been run and the transaction is closed from any further activities.

When you run programs such as the Lean Accounting - Manufacturing Accounting program (RF31200) or Lean Variance Journal Entries program (RF31210), the system verifies that the transaction is not closed. If the transaction has been closed, you cannot perform any kind of additional accounting activities on the transaction.

Note. Setting up lean accounting requires no steps in addition to those that are already required in setting up manufacturing accounting.

Running Lean Manufacturing Accounting

This section provides an overview of the Lean Accounting - Manufacturing Accounting program and discusses how to:

Run lean manufacturing accounting.
Set processing options for Lean Accounting - Manufacturing Accounting (RF31200).

Understanding the Lean Accounting - Manufacturing Accounting Program

The Lean Accounting - Manufacturing Accounting program creates journal entries for material, labor, overhead, and extra costs for transactions.

Tables Used by the Lean Accounting - Manufacturing Accounting Program

The Lean Accounting - Manufacturing Accounting program extracts data from these tables:

Lean Transaction Master (FF31011).
Lean Transaction Parts List (FF31111).
Lean Transaction Routing (FF31112).
Lean Transaction Labor Detail (FF31113).
Lean Transaction Production Costs (FF31200).

The Lean Accounting - Manufacturing Accounting program writes to these tables:

All of the tables in the previous list.
Lean Transaction G/L Cross Reference (FF31201).
Item Ledger (CARDEX) (F4111).
General Ledger (F0911).

Canceling Transactions

If you want to cancel transactions in lean manufacturing accounting, the following conditions apply:

Canceled transactions are transactions that have been written to the F0911 table, and then reversed back out again. These ransactions are reversed at the current standard cost for the item.
You cannot cancel transactions if you have run the Lean Manufacturing Variance Accounting program with the Further processing option set to close the transaction.

Running Lean Manufacturing Accounting

Select Orderless Manufacturing Accounting (GF3116), Lean Manufacturing Accounting.

Setting Processing Options for Lean Accounting - Manufacturing Accounting (RF31200)

These processing options control default processing for the Lean Accounting - Manufacturing Accounting program.

Default

These processing options control the default general date and the document types that are used for lean manufacturing accounting.

1. General Ledger Date	Specify the general ledger date that appears on journal entries. If you leave this processing option blank, the system uses the current system date for the general ledger date.
2. Document Type for Material Issue	Specify the document type (UDC 00/DT) to assign to material issue transactions. If you leave this processing option blank, the program uses LM as the document type.
3. Document Type for Shop Floor Labor	Specify the document type (UDC 00/DT) to assign to shop floor labor transactions. If you leave this processing option blank, the program uses LL as the document type.
4. Document Type for Completion	Specify the document type (UDC 00/DT) to assign to completion transactions. If you leave this processing option blank, the program uses LC as the document type.
5. Document Type for Scrap	Specify the document type (UDC 00/DT) to assign to Scrap transactions. If you leave this processing option blank, the program uses LP as the document type.

Process

These processing options control how the system processes lean accounting information.

1. Journal Entry Mode	Specify whether the program runs in proof or final mode. Values are: Blank: Proof mode. Performs all calculations and edits, but does not create journal entries. 1: Final mode. Performs all calculations and edits and creates journal entries.
2. Material Issues summarized WITHIN Production Plan and Transaction ID	Specify that journal entries for material issue are summarized by account within a production plan and transaction ID. The program creates one journal entry for each unique combination of account number and production plan and transaction ID only for material issue transactions. Values are: Blank: Do not summarize journal entries for material issue by account. 1: Summarize all journal entries for material issue by account. This option reduces the number of journal entries.
3. Accounts summarized ACROSS Production Plans and Transaction IDs	Specify that the journal entries are summarized by account across production plans and transaction IDs. The program creates one journal entry for each unique combination of account number and production plan and transaction ID for all types of transactions. Values are: Blank: Do not summarize journal entries by account. 1: Summarize all journal entries by account. This option reduces the number of journal entries.
4. Flex Accounting	Specify whether the program should search for Flex Accounting rules to populate cost objects in the F0911 table. Flex Accounting rules are required to attach cost objects to the journal entries. Values are: Blank: Do not use Flex Accounting. 1: Use Flex Accounting.
5. G/L Class Code for Material Issues (general ledger class code for material issues)	Specify the GL class code that the system should apply to the credit side of Material Issue transactions (LM) when Standard Costing method is used. Values are: Blank: Use the GL Class Code that is associated with the Item Branch record for the material. 1: Use the GL class code that is associated with the location from which the material was issued.

These processing options control which information appears on the report.

1. Journal Entry Report	Specify whether the system prints a Journal Entry Report. Values are: Blank: Do not print a Journal Entry Report. 1: Print a Journal Entry Report.
2. Sub-totals by Production Plan and Transaction ID and Document Type	Specify whether the system prints subtotals by production plan, transaction ID, and document type. Values are: Blank: Do not print subtotals. 1: Print subtotals.
3. Material Issues summarized WITHIN Production Plan and Transaction ID for Report	Specify whether journal entries for material issue have to be summarized by account within a production plan and transaction ID on the report. The program prints one journal entry for each unique combination of account number and production plan and transaction ID only for Material Issue transactions. This processing option does not affect the number of journal entries that the program creates. The journal entries on the report can be summarized irrespective of whether the actual journal entries are summarized. Values are: Blank: Do not summarize journal entries for material issue by account on the report. 1: Summarize journal entries for material issue by account on the report.
4. Accounts summarized ACROSS Production Plans and Transaction IDs for Report	Specify whether journal entries are summarized by account across production plans and transaction IDs on the report. The program prints one journal entry for each unique combination of account number, production plan, and transaction ID for all types of transactions. This processing option does not affect the number of journal entries that the program creates. The journal entries on the report can be summarized irrespective of whether the actual journal entries are summarized. Values are: Blank: Do not summarize journal entries by account on the report. 1: Summarize all journal entries by account on the report.

Processing Lean Manufacturing Variance Accounting

This section provides an overview of the Lean Variance Journal Entries program and discusses how to:

Run Lean Variance Journal Entries.
Set processing options for Lean Variance Journal Entries (RF31210).

Understanding the Lean Variance Journal Entries Program

The business purpose for orderless accounting is essentially the same as it is for manufacturing accounting: to process differences that occur between the predefined or expected costs and the actual costs. The main difference is that instead of tracking costs that are associated with work orders, for orderless accounting you track costs that are associated with a transaction or groups of transactions.

Tables Used by the Lean Variance Journal Entries Program

The Lean Variance Journal Entries program extracts data from these tables:

Lean Transaction Master (FF31011).
Lean Transaction Parts List (FF31111).
Lean Transaction Labor Detail (FF31113).
Lean Transaction Production Costs (FF31200).

The Lean Variance Journal Entries program writes to these tables:

Lean Transaction Master (FF31011).
Lean Transaction Production Costs (FF31200).
Lean Transaction G/L Cross Reference (FF31201).
General Ledger (F0911).

Running Lean Variance Journal Entries

Select Orderless Manufacturing Accounting (GF3116), Lean Manufacturing Variance Accounting.

Setting Processing Options for Lean Variance Journal Entries (RF31210)

These processing options control default processing for the Lean Variance Journal Entries program.

Defaults

These processing options control default values that the system uses for lean variance journal entries.

1. General Ledger Date	Specify the general ledger date that appears on journal entries. If you leave this processing option blank, the system uses the current system date for the general ledger date.
2. Document Type for Variance	Specify the document type (UDC: 00/DT) that is to be assigned to variance transactions. If you leave this processing option blank, the program uses LV as the document type.

Process

These processing options control how the system processes lean accounting variances.

1. Journal Entries Mode	Specify whether the program runs in proof mode or final mode. Values are: Blank: Proof mode. The program performs all calculations and edits, but does not create journal entries. 1: Final mode. The program performs all calculations and edits and creates journal entries.
2. Accounts summarized ACROSS Production Plans and Transaction IDs	Specify whether the journal entries are summarized by account across production plans and transaction IDs. The program creates one journal entry for each unique combination of account number, production plan, and transaction ID for all types of transactions. Values are: Blank: Do not summarize journal entries by account. 1: Summarize all journal entries by account. This option reduces the number of journal entries.
3. Flex Accounting	Specify whether the program searches for Flex Accounting rules to populate cost objects in the Account Ledger table (F0911). Flex Accounting rules are required to attach cost objects to the journal entries. Values are: Blank: Do not use Flex Accounting. 1: Use Flex Accounting.
4. Further Processing	Specify whether the system allows any further processing on the transaction ID. Values are: Blank: Allow further processing. 1: Do not allow further processing.

These processing options control which information the system includes in the report.

1. Journal Entry Report

Specify whether the system should print a Journal Entry Report. Values are:

Blank: Do not print a Journal Entry Report.

1: Print a Journal Entry Report.

2. Sub-totals by Production Plan and Transaction ID

Specify whether the system should print subtotals by production plan, transaction ID, and document type. Values are:

Blank: Do not print subtotals by production plan, transaction ID, and document type.

1: Print subtotals by production plan, transaction ID, and document type.

3. Accounts summarized ACROSS Production Plans and Transaction IDs for Report

Specify whether journal entries are summarized by account across production plans and transaction IDs on the report. The program prints one journal entry for each unique combination of account number, production plan, and transaction ID for all types of transactions.

This processing option does not affect the number of journal entries that the program creates. The journal entries on the report can be summarized irrespective of whether the actual journal entries are summarized. Values are:

Blank: Do not summarize journal entries by account on the report.

1: Summarize all journal entries by account on the report.

Running and Reviewing the Lean Production Cost Inquiry Program

This section provides an overview of the Lean Production Cost Inquiry program and discusses how to review costs and variances.

Understanding the Lean Production Cost Inquiry Program

The Production Cost Inquiry program displays the costs and variances that are associated with transactions. Orderless-production cost inquiries track costs and variances that are the same as manufacturing accounting.

Processes use this sequence:

Run the Items Completions program (PF31011).
Run the Transaction Management program (PF31014).
On the Review or Reverse Transaction form, find and select a record, and click the Production Cost Inquiry button.

The Product Cost Inquiry program enables you to review standard and current costs from the completion.
Run the Lean Accounting - Manufacturing Accounting program (RF31200), which enables you to review the planned, actual, completed, and scrapped costs.
Run the Product Cost Inquiry program again, and the system displays costs, units, and variances corresponding to the data that you entered in the previous steps.
If at this point you run the Lean Variances Journal Entries program (RF31210), and then the Product Cost Inquiry program, the variances do not appear on the Product Cost Inquiry form.

The absence of variances indicates that the variances have been run, and no new transactions have been added.

The system retains the variances in the Lean Transaction Production Costs table (FF31200) so that if you need to reverse a transaction, the variance values are available for the reversal journal entries.

See Reviewing Production Costs.

Forms Used to Run and Review the Lean Production Cost Inquiry Program

Form Name	FormID	Navigation	Usage
Review or Reverse Transaction	WF31014A	Orderless Manufacturing Accounting (GF3116), Transaction Management	Access the View Production Cost Records form.
Production Cost Inquiry - View Production Cost Records	WF31200A	Select a record and click the Production Cost Inquiry button on the Review or Reverse Transaction form.	Review costs and variances that are associated with a transaction.

Reviewing Costs and Variances

Access the Production Cost Inquiry - View Production Cost Records form.

Running the Lean WIP Revaluation Program

This section provides an overview of the Lean WIP Revaluation program and discusses how to:

Run the Lean WIP Revaluation program.
Set processing options for Lean WIP Revaluation (RF31220).

Understanding the Lean WIP Revaluation Program

The business purpose for orderless work-in-process (WIP) revaluation is essentially the same as it is for revaluing costs using work orders. The main difference is that instead of revaluing costs in work orders, for orderless manufacturing you revalue costs in transactions.

You run the Lean WIP Revaluation program using processing options for the Standard Frozen Update program (R30835). You must enter 2 (Invoke WIP Revaluation for Lean Manufacturing) for the WIP Revaluation option on the Processing tab, and enter the version number on the Versions tab.

Tables Used by the Lean WIP Revaluation Program

The Lean WIP Revaluation program extracts data from these tables:

Lean Transaction Master (FF31011).
Lean Transaction Parts List (FF31111).
Lean Transaction Routing (FF31112).
Lean Transaction Labor Detail (FF31113).
Lean Transaction Production Costs (FF31200).

The Lean WIP Revaluation program writes to these tables:

All of the tables in the previous list.
Lean Transaction G/L Cross Reference (FF31201) .
Item Ledger (CARDEX) (F4111).
General Ledger (F0911).

Running the Lean WIP Revaluation Program

Select Product Costing (G3014), Frozen Standard Update.

Note. The Lean WIP Revaluation (RF31220) processing options must be set up in batch versions before you set the processing options to run the Standard Frozen Update program.

Setting Processing Options for Lean WIP Revaluation (RF31220)

These processing options control default processing for the Lean WIP Revaluation program.

Defaults

This processing option controls which document type the system uses for WIP revaluation.

1. Document Type

Specify the document type (UDC 00/DT) that the system uses. If you leave this processing option blank, the system uses IB (item cost changes).

Process

This processing option controls how the Lean WIP Revaluation program writes GL transactions.

1. G/L Transactions (general ledger transactions)

Specify whether no general ledger transactions are written, detailed general ledger transactions are written by document number, or summarized journal entries by account are written to the F0911 table. Values are:

Blank: No general ledger transactions are written to the F0911 table.

1: Detailed general ledger transactions are written by document number to the F0911 table.

2: Summarized journal entries by account are written to the F0911 table.

Running the Item Ledger/Account Integrity Report

This section provides an overview of the Item Ledger/Account Integrity report and discusses how to:

Run the Item Ledger/Account Integrity report.
Set processing options for Item Ledger/Account Integrity (R41543).

Understanding the Item Ledger/Account Integrity Report

You run the Item Ledger/Account Integrity report (R41543) for orderless manufacturing systems for the same reason as you do for manufacturing accounting systems. The report displays certain kinds of discrepancies between the Item Ledger (CARDEX) table (F4111) and the General Ledger table (F0911).

Tables Used by the Item Ledger/Account Integrity Report

The Item Ledger/Account Integrity report extracts data from these tables:

Item Ledger (CARDEX) (F4111).
Work Order G/L Cross Reference (F3106).
Lean Transaction G/L Cross Reference (FF31201).
General Ledger (F0911).

The Item Ledger/Account Integrity report:

Creates a report in standard PDF.
Does not update any tables.

Running the Item Ledger/Account Integrity Report

Select Inventory Reports (G41111), Item Ledger/Account Integrity Report.

Setting Processing Options for Item Ledger/Account Integrity (R41543)

These processing options control default processing for the Item Ledger/Account Integrity report.

Report Display

These processing options control how the program presents the data.

1. Enter From G/L Date (enter from general ledger date)	Specify a date that identifies the financial period to which the transaction is to be posted. The company constants specify the date range for each financial period. You can have as many as 14 periods. Generally, period 13 or 14 is used for audit adjustments. The system validates this field for PBCO (posted before cutoff), PYEB (prior year ending balance), PACO (post after cutoff), and WACO (post way after cutoff) messages.
2. Enter Thru G/L Date (enter through general ledger date)	Specify a date that identifies the financial period to which the transaction is to be posted. The company constants specify the date range for each financial period. You can have as many as 14 periods. Generally, period 13 or 14 is used for audit adjustments. The system validates this field for PBCO (posted before cutoff), PYEB (prior year ending balance), PACO (post after cutoff), and WACO (post way after cutoff) messages. If you leave this processing option blank, the system uses today's date.
3. Enter Work Order Completion Document Type	Specify a UDC (00/DT) value that identifies the origin and purpose of the transaction. The JD Edwards EnterpriseOne system reserves several prefixes for document types, such as vouchers, invoices, receipts, and timesheets. If you leave this processing option blank, the system uses the default value of document type IC (Completed W.O.s to Inventory).
4. Enter Work Order Issue Document Type	Specify a UDC (00/DT) value that identifies the origin and purpose of the transaction. The JD Edwards EnterpriseOne system reserves several prefixes for document types, such as vouchers, invoices, receipts, and timesheets. If you leave this processing option blank, the system uses the default value of document type IM (Material Charged to W.O.s).
5. Enter Lean Transaction Completion Document Type	Specify a UDC (00/DT) value that identifies the origin and purpose of the transaction. The JD Edwards EnterpriseOne system reserves several prefixes for document types, such as vouchers, invoices, receipts, and timesheets. If you leave this processing option blank, the system uses the default value of document type LC (Lean Completion).
6. Enter Lean Transaction Issue Document Type	Specify a UDC (00/DT) value that identifies the origin and purpose of the transaction. The JD Edwards EnterpriseOne system reserves several prefixes for document types, such as vouchers, invoices, receipts, and timesheets. If you leave this processing option blank, the system uses the default value of document type LM (Lean Material Issue).
7. Show Item Level Detail	Specify whether you want the report to display item level details. Values are: Blank: Do not display item level details. 1: Display item level details.

Reviewing General Ledger Information

This section provides an overview of the Lean Accounting - G/L Review program and lists the forms used to review general ledger information.

Understanding the Lean Accounting - G/L Review Program

Use the Lean Accounting - G/L Review program (PF31201) to locate information that is contained in the general ledger. You can search by production ID, transaction ID, or batch number. For example, you can enter a transaction ID to discover the general ledger batch to which you actually wrote. You can also use this program to ascertain whether a transaction has been posted.

The program extracts data from the Lean Transaction G/L Cross Reference table (FF31201).

Forms Used to Review General Ledger Information

Form Name	FormID	Navigation	Usage
Transaction / G/L Cross Reference - Select Cross Reference records	WF31201B	Orderless Manufacturing Accounting (GF3116), Lean Accounting - G/L Review	Find general ledger information by production ID, transaction ID, or batch number.
General Journal Review	W0911BA	Select a record and click the General Journal Review button on the Transaction / G/L Cross Reference - Select Cross Reference records form.	Review lean accounting journal entries.