This chapter contains the following topics:
Section 9.2, "Understanding Lean Manufacturing Accounting Setup"
Section 9.4, "Processing Lean Manufacturing Variance Accounting"
Section 9.5, "Running and Reviewing the Lean Production Cost Inquiry Program"
Section 9.7, "Running the Item Ledger/Account Integrity Report"
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.
This section discusses:
Automatic accounting instructions (AAIs).
Document types.
Transaction progress.
Orderless accounting can use all of the AAIs that are used by standard manufacturing accounting.
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.
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. |
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).
The Lean Accounting - Manufacturing Accounting program creates journal entries for material, labor, overhead, and extra costs for transactions.
The Lean Accounting - Manufacturing Accounting program extracts data from these tables:
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).
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 transactions 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.
Select Orderless Manufacturing Accounting (GF3116), Lean Manufacturing Accounting.
These processing options control default processing for the Lean Accounting - Manufacturing Accounting program.
These processing options control the default general date and the document types that are used for lean manufacturing accounting.
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.
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.
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.
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.
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.
These processing options control how the system processes lean accounting information.
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.
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.
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.
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.
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.
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.
Specify whether the system prints subtotals by production plan, transaction ID, and document type. Values are:
Blank: Do not print subtotals.
1: Print subtotals.
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.
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.
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).
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.
The Lean Variance Journal Entries program extracts data from these tables:
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).
Select Orderless Manufacturing Accounting (GF3116), Lean Manufacturing Variance Accounting.
These processing options control default processing for the Lean Variance Journal Entries program.
These processing options control default values that the system uses for lean variance journal entries.
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.
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.
These processing options control how the system processes lean accounting variances.
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.
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.
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.
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.
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.
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.
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.
This section provides an overview of the Lean Production Cost Inquiry program and discusses how to review costs and variances.
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.
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. |
Access the Production Cost Inquiry - View Production Cost Records form.
Figure 9-1 Production Cost Inquiry - View Production Cost Records form (1 of 3)
Figure 9-2 Production Cost Inquiry - View Production Cost Records form (2 of 3)
Figure 9-3 Production Cost Inquiry - View Production Cost Records form (3 of 3)
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).
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.
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. |
These processing options control default processing for the Lean WIP Revaluation program.
This processing option controls which document type the system uses for WIP revaluation.
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).
This processing option controls how the Lean WIP Revaluation program writes GL 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.
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).
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).
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.
Select Inventory Reports (G41111), Item Ledger/Account Integrity Report.
These processing options control default processing for the Item Ledger/Account Integrity report.
These processing options control how the program presents the data.
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.
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.
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).
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).
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).
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).
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.
This section provides an overview of the Lean Accounting - G/L Review program and lists the forms used to review general ledger information.
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).