This chapter contains the following topics:
Section 1.1, "JD Edwards EnterpriseOne Product Costing and Manufacturing Accounting Overview"
Section 1.2, "JD Edwards EnterpriseOne Product Costing and Manufacturing Accounting Integrations"
Section 1.3, "JD Edwards EnterpriseOne Product Costing and Manufacturing Accounting Implementation"
Product costing and manufacturing accounting is an important part of a profitable manufacturing environment. After you have determined whether the company will use standard or actual costing methods, you can set up and implement the manufacturing accounting system.
Oracle's JD Edwards EnterpriseOne Product Costing and Manufacturing Accounting systems in the JD Edwards EnterpriseOne Supply Chain Management suite from Oracle provide the features required to resolve the issues presented by the industry environment and enable a company to control its costs and make them transparent.
With this application, you can:
Define and maintain an unlimited number of cost components for tracking specific costs, such as freight, taxes, duty, and electricity.
Define an unlimited number of cost methods to use in cost simulation analysis.
Assign cost factors and rates to a specific item to be used with cost extras or add-ons to calculate additional costs.
Print a set of reports to compare old costs with new costs before implementing any changes.
Calculate the total material cost by retrieving the bill of material for all items and adding the total cost of the components.
Run a complete simulation of costs before any live data is updated as the frozen cost standard.
Maintain cost information at the branch/plant and work center level to allow for cost variances at different locations for identical manufactured items.
Charge amounts to specified accounts.
Create detailed or summary journal entries for work in process or completions.
Create detailed or summary journal entries for work order or rate schedule variances.
Print reports listing detailed costs and variances for work orders or rate schedules.
Review engineering, planned, actual (material and labor), and other variances.
Process lean accounting transactions using transaction IDs and production plans rather than work orders.
The JD Edwards EnterpriseOne Product Costing and Manufacturing Accounting systems integrate with these JD Edwards EnterpriseOne systems from Oracle:
JD Edwards EnterpriseOne Product Data Management.
JD Edwards EnterpriseOne Shop Floor Management.
JD Edwards EnterpriseOne Engineer to Order.
JD Edwards EnterpriseOne Time and Labor.
JD Edwards EnterpriseOne General Accounting.
The JD Edwards EnterpriseOne Product Costing and Manufacturing Accounting systems work with other JD Edwards EnterpriseOne systems to ensure that all product and manufacturing costs are tracked and transacted. We discuss integration considerations in the implementation chapters in this implementation guide.
You set up bills of material in the JD Edwards EnterpriseOne Product Data Management system from Oracle, and review the costing of bills of material. Also, you enter routings in JD Edwards EnterpriseOne Product Data Management, and review them for labor and overhead costs.
Many companies who use the JD Edwards EnterpriseOne Shop Floor Management system from Oracle want to capture and track actual or average manufacturing costs. If you use actual costing, the system calculates the cost of the product built on a work order or rate schedule based on the actual hours used and the actual quantity of issued parts.
You can set up the Manufacturing Accounting Journal Entries program (R31802A) to create duplicate journal entries for end-item manufacturing work orders for engineer to order (ETO) projects in Oracle's JD Edwards EnterpriseOne Engineer to Order system.
JD Edwards EnterpriseOne Product Costing and Manufacturing Accounting systems have an interface with the Speed Time Entry program so that transaction data from Oracle's JD Edwards EnterpriseOne Time and Labor system can be used in JD Edwards EnterpriseOne Shop Floor Management.
You set up manufacturing account numbers using Oracle's JD Edwards EnterpriseOne General Accounting system. Also, transactions such as inventory issues, labor, and work order completions are posted to the general ledger. Additionally, you can enter accrual, adjustment, and reclassification transactions using JD Edwards EnterpriseOne General Accounting. However, none of these transactions appear in manufacturing reports.
This section provides an overview of the steps that are required to implement JD Edwards EnterpriseOne Product Costing and Manufacturing Accounting systems.
In the planning phase of the implementation, take advantage of all JD Edwards EnterpriseOne sources of information, including the installation guides and troubleshooting information.
When determining which electronic software updates (ESUs) to install for JD Edwards EnterpriseOne Product Costing and Manufacturing Accounting, use the EnterpriseOne and World Change Assistant. EnterpriseOne and World Change Assistant, a Java-based tool, reduces the time required to search and download ESUs by 75 percent or more and enables you to install multiple ESUs at one time.
See JD Edwards EnterpriseOne Tools Software Updates Guide.
For information about the Oracle Business Accelerator solution for implementation of JD Edwards EnterpriseOne Product Costing and Manufacturing Accounting, review the documentation available.
See http://docs.oracle.com/cd/E24705_01/index.htm.
This table lists the suggested implementation steps for the JD Edwards EnterpriseOne Product Costing and Manufacturing Accounting systems:
Set up global UDC tables.
See "Working with User Defined Codes" in the JD Edwards EnterpriseOne Tools System Administration Guide.
Set up fiscal date patterns.
Set up companies.
Set up business units.
Set up next numbers.
Set up accounts and the chart of accounts.
Set up the General Accounting constants.
Set up multicurrency processing, including currency codes and exchange rates.
See "Preface" in the JD Edwards EnterpriseOne Applications Multicurrency Processing Implementation Guide.
Set up ledger type rules.
Set up address book records.
Set up default location and printers.
Set up branch/plant constants.
Set up Manufacturing/Distribution AAIs.
Set up document types.
Set up shop floor calendars.
Set up manufacturing constants.
This table lists the suggested application-specific implementation steps for JD Edwards EnterpriseOne Product Costing and Manufacturing Accounting:
Set up manufacturing constants for Product Costing and Manufacturing Accounting.
Set up UDCs for product costing.
Set up costing information.
Set up accounting cost quantities for standard costs.
See Defining Accounting Cost Quantities for Standard Costing.
Set up item cost levels.
Set up methods and costs for items.
Set up standard rate and factor codes.
Assign values to user-defined cost components.
Set up simulated rates for work centers.