Performing Cost Accounting

This chapter provides an overview of cost accounting and discusses how:

• Enter lot costs.

• Enter global administration costs.

• Spread expenses.

• Process blend transactions.

Understanding Cost Accounting

After you close operations or periodically, you should update accounting information. As you close operations, the system creates transactions for the operations. You can then create journal entries to capture costs as operations change the composition of wine and move costs between accounts.

When you set up the winery, you specified which accounting method, standard or operational, the winery uses. Doing so determines the basis that the system uses when creating journal entries. When you use operational costing, the system calculates the lot costs and uses them as the basis for creating journal entries. The costs of the Before lot plus the costs of the operation become the costs of the After lot. When you use standard costing, the system uses the EUR standard cost as the basis for the journal entries. For example, a 100 gallon lot of wine has 100.00 USD of operational costs and belongs to the CABSAV EUR with a standard cost of 5.00 USD per gallon. Using standard costing, the journal entries are for 500.00 USD (5.00 USD per gallon × 100 gallons). Using operational costing, the journal entries are for 100.00 USD.

Additionally, as operations remove material from the JD Edwards Blend Management system, (sale of bulk wine or bottling) and consume dry goods (additives and consumables) the system records this in the Item Ledger (F4111) and Item Location (F41021) tables. You can access the item ledger transactions by selecting Item Ledger from the Blend Advanced Operations (G31B05) menu.

See Selected JD Edwards EnterpriseOne Inventory Management Reports.

Creating journal entries is the first step of a three-tier process. This process is used throughout all of the JD Edwards EnterpriseOne programs and includes these steps:

• Creating journal entries in a batch.

• Reviewing and approving general ledger batches.

• Posting journal entries to the general ledger.

Entering Lot Costs

This section provides an overview of lot costs and discusses how to enter lot costs.

Understanding Lot Costs

Occasionally, you might have to add or change costs of a lot of wine. For example, if overhead rates change, you can add these additional costs to a lot. You do this by adding an error administrative operation to an existing operation for the vessel. When you configure the error operation, you must select Allow Changes to Lot Costs on the Cost tab.

The system stores lot costs in the Blend Lot Costs (F31B31C) table.

Forms Used to Enter Lot Costs

Entering Lot Costs

Access the Edit Lot Costs form.

Cost Override	Clear to indicate that this is not a cost override. The system selects this field when you change any of the fields on this form. The system does not recalculate overridden costs; however, the system does recalculate other costs each time you save the operation.
Unit Cost	Enter the unit cost.
Amount	Enter the amount.

Entering Global Administration Costs

This section provides an overview of global administration costs, lists prerequisites, and discusses how to:

• Set processing options for Global Administration (R31B88).

• Enter global administration costs.

Understanding Global Administration Costs

Periodically, you might have to update time-based costs for lots that are attached to vessels. For example, you might need to update costs, such as depreciation, overhead, or other expenses. You use the Global Administration program (R31B88) to add the costs to a lot or multiple lots by selecting the appropriate vessels and lot attributes. You add cost groups for these costs to the vessels and the global administration operation updates the lot costs by running the Global Administration program. The program creates a single operation for each vessel.

Prerequisites

To complete this task, you must:

• Set up a global administration operation.

  See Setting Up Operations.

• Set processing options for Select Vessels (R31B86).

  See Processing Options for Select Vessels (R31B86).

Setting Processing Options for Create Admin Operations (R31B88)

These processing options control default processing for the Create Admin Operation program.

Defaults

Use these processing options to enter default information.

Entering Global Administration Costs

Select Blend Advanced Operations (G31B05), Global Admin Ops.

Spreading Expenses

This section provides an overview of expense spreading, lists a prerequisite, and discusses how to spread expenses.

Understanding Expense Spreading

Periodically, you will need to review and revise costs for the winery. For example, you might have accumulated depreciation that is not reflected in the lot costs. You can use the Inventory by Vessel View (P31B81) program to locate vessels and lots and then select the appropriate vessels and lots for which to spread expenses. You use error correction operations to spread expenses. The system creates a single operation per vessel and spreads expenses proportionately by volume. Expense spreading overrides the existing cost components to ensure that no new amounts are calculated on these cost components.

Note. It is recommended not to attach a cost group to the error operation because it would add new costs.

If you locate vessels and lots using the EUR field, the system displays costs by the portion of the cost attributed to the EUR. Costs spread by EUR are spread proportionately to the EUR volume, not lot volume.

Prerequisite

Set the Enable Expense Spreading processing option on the Defaults tab for the Inventory by Vessel View (P31B81) program.

Forms Used to Spread Expenses

Spreading Expenses

Access the Operation/WO Template Selection form.

Specify the winery and the workflow status for the configured operation.

Processing Blend Transactions

This section provides an overview of blend transaction processing and discusses how to:

• Create journal entries for blend cost accounting.

• Set processing options for Blend Cost Accounting Journal Entries (R31B802).

• Review and approve general ledger batches.

• Post journal entries to the general ledger.

• Set processing options for General Ledger Post (R09801).

Understanding Blend Transaction Processing

You create journal entries, detailed or summarized, periodically to account for transactions when you close an operation. Operational transactions can include:

• Operations for receipt, crush, drain, move, and so forth.

• Gains/losses for survey, operation, and casualty.

• EUR changes.

As you close operations, the system stores transactions in the Blend Transactions (F31B66) table. Blend automatic accounting instructions (AAIs) contain the accounts to which journal entries are written. The system creates journal entries for inventory, if the operation includes consumables or additives. To create journal entries for Before and After lot costs, you run the Blend Cost Accounting Journal Entries program (R31B802)/

If you use operational costing, the systems captures lot costs in the journal entries. When the system creates journal entries for After lot amounts, it reverses the journal entries, not the costs, of the Before lot amounts. If you use standard costing, the system multiplies the lot quantity with the EUR standard cost in the journal entries.

After you create journal entries, you must review the journal entry batch, approve the batch, and then post the batch to the general ledger. When you run the General Ledger Post program (R09801), it updates all account balances in the Account Balances table (F0902). After posting, the system provides several reports that you can use to review the posted journal entries. You can run only one post at a time. You must ensure that all post menu selections are routed to the same job queue and that the job queue allows only one job to process at a time.

Note. It is strongly recommended that you do not configure the post program. You should not change the accounts, AAIs, constants, or processing options when you run the post.

See Posting Financial Transactions.

Detail Journal Entries

You can have the system create detailed journal entries for similar accounts. You might create detail journal entries if you want a detailed audit trail. Choosing detailed journal entries can create more records when you post entries.

Summarized Journal Entries

You use summarized journal entries to summarize the cost components into a single journal entry. You can set processing options for the Blend Cost Accounting Journal Entries program to summarize all journal entries by account number. When the system creates journal entries, it summarizes the transactions and creates one entry for the batch for each account before writing them to the general ledger. The entry is the sum of all transactions for each account by document type. In summarized journal entry mode, only the net changes to the accounts are recorded. You can also set the processing options to print a summarized accounting transaction report.

Setting Processing Options for Blend Cost Accounting Journal Entries (R31B802)

These processing options control default processing for the Blend Cost Accounting Journal Entries program.

Select

These processing options control the selection of transactions by date.

Process

These processing options control the type of processing and the processing mode.

Default

These processing options control default settings.

Print

These processing options control the print settings.

Creating Journal Entries for Blend Cost Accounting

Select Blend Advanced Operations (G31B05), Blend Cost Accounting Journal Entries.

Setting Processing Options for General Ledger Post (R09801)

These processing options control default processing for the General Ledger Post program.

Print

These processing options specify which account format prints on the report and whether the report includes error messages.

Edits

This processing option specifies whether the system updates the specific fields on the transaction.

Posting Journal Entries to the General Ledger

Select Blend Advanced Operations (G31B05), General Ledger Post.