Oracle Cost Management User's Guide

Contents

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Preface

Cost Management Overview

Overview of Cost Management

Cost Structure

Standard and Average Costing Compared

      Changing from Standard to Average Costing

Retroactive Pricing

Landed Cost Management (LCM)

Setting Up Oracle Cost Management

Overview of Setting Up

Setup Checklist

Setup Steps

Default Interorganization Options

Default Inter-Organization Transfer Accounts

Setting Up Periods

Defining Cost Types

Defining Activities and Activity Costs

Defining Subelements

Defining Material Subelements

Defining Overhead

Defining Material Overhead Defaults

Mass Editing Item Accounts

Mass Editing Cost Information

Setting Cost Controls

Copying Costs

Default Basis Types

Associating Expenditure Types with Cost Elements

Defining Category Accounts

Account Update Restrictions

Associating WIP Accounting Classes with Categories

Project Cost Groups

Profile Options and Security Functions

Landed Cost Management (LCM)

Cost Management Security Functions

Item Costing

Overview of Item Costing Activities

Selecting an Item/Cost Type Association

Defining Item Costs

Defining Item Costs Details

Viewing Item Costs

Cost Type Inquiries

Purging Cost Information

Viewing Material Transaction Distributions

Viewing WIP Transaction Distributions

Viewing WIP Value Summaries

Viewing Material Transactions

Pending Landed Cost Adjustments

Receiving Accounting Events

Error Resubmission

Standard Costing

Overview of Standard Costing

      Work in Process Transaction Cost Flow

Standard Costing Setup

Setting Up Standard Costing

Setting Up Standard Costing for Manufacturing

Bills and Cost Rollups

Updating Standard Costs

Phantom Costing

Reporting Pending Adjustments

Updating Pending Costs to Frozen Standard Costs

Reporting Cost Update Adjustments

Viewing Standard Cost History

Viewing a Standard Cost Update

Purging Standard Cost Update History

Standard Cost Valuation

Overview of Standard Cost Variances

Manufacturing Standard Cost Variances

Standard Cost Transactions

Manufacturing Standard Cost Transactions

Average Costing

Overview of Average Costing

Setting Up Average Costing

Setting Up Average Costing for Manufacturing

Average Costing Flows

Updating Average Costs

Transferring Invoice Variance

Average Cost Recalculation

Viewing Item Cost History Information

Average Cost Valuation

Average Cost Variances

Average Cost Transactions

Average Costing Purchasing Transactions

Average Costing Inventory Transactions

Average Costing Order Management/Shipping Execution Transactions

Average Cost Update

Manufacturing Average Cost Transactions

FIFO and LIFO Costing

Overview of FIFO and LIFO Costing (also known as Layer Costing)

Describing the Major Features of FIFO/LIFO Costing

Setting Up Layer Costing

Layer Maintenance

Setting Up Layer Costing for Manufacturing

Layer Costing Flows

Updating Layer Costs

Layer Cost

Viewing Layer Item Costs

Layer Cost Valuation

Cost Variances

Layer Cost Transactions

Layer Costing Purchasing Transactions

Layer Costing Inventory Transactions

Layer Costing Order Management/Shipping Execution Transactions

Layer Cost Update

Manufacturing Transactions

Revenue and COGS Matching

Overview of Revenue / COGS Matching

Revenue / COGS Recognition Methodology

COGS Recognition and Concurrent Processes

Supported Business Scenarios

Project Manufacturing Costing

Overview of Project Manufacturing

Setting Up Project Manufacturing Costing

Cost Elements, Subelements, and Expenditure Types

Project Manufacturing Valuations and Variances

Project Manufacturing Costing Transactions

Material Overhead Application

Material Overhead Defaulting

Project Cost Collector

Applying Overhead Rate by Oracle Projects

Work in Process Resource Employee Transactions

Periodic Costing

Overview of Periodic Costing

Periodic Costing Methods

Periodic Cost Setup

Periodic Cost Processing

Periodic Incremental LIFO Business Examples

Reports

      eAM Report for Estimates and Actuals

      Periodic Acquisition Cost Report

      Periodic Incremental LIFO Valuation Report

      Periodic Accrual Reconciliation Report

      Periodic Accrual Write-Off Report

      Periodic Inventory Value Report

      Periodic Item Cost Change Report

      Periodic WIP Value Report

      Periodic Material and Receiving Distribution Summary Report

      Periodic Material and Receiving Distribution Details Report

      Periodic WIP Distribution Details Report

      Periodic WIP Distribution Summary Report

Iterative Periodic Average Costing

Iterative Periodic Average Costing (IPAC) Overview

Comparing IPAC and Standard Periodic Average Costing

Iteration Process

Setting Up IPAC

Running IPAC

Viewing IPAC Process Status For a Period

Period Close

Overview of Period Close

Closing a Period

Period Close Diagnostics

Business Flows Across Inventory Organizations

Rolling Up Supply Chain Costs

Inter-Organization Transfers

Transfer Price Costing

Transfers Between Process and Discrete Organizations

Complex Intercompany Invoicing

Subledger Accounting (SLA)

Overview of Subledger Accounting (SLA)

Subledger Accounting Profile Option

Defining Accounting Derivation Rules

Create Accounting - Cost Management

Transfer Journal Entries to GL - Cost Management

Viewing Accounting and Accounting Events

Reports

Reports Overview

All Inventories Value Report

All Inventories Value Report - by Cost Group

COGS / Revenue Matching Report

Cost Type Comparison Report

Detailed Item Cost Report

Discrete Job Value Report

Elemental Cost Report

Elemental Inventory Value Report - by Subinventory

Elemental Inventory Value Report - by Cost Group

Intransit Standard Cost Adjustment Report

Intransit Value Report

Inventory Master Book Report

Inventory Standard Cost Adjustment Report

Inventory Subledger Report

Inventory Value Report - by Subinventory

Inventory Value Report - by Cost Group

Invoice Transfer to Inventory Report

Item Cost Reports

Layer Inventory Value Report - FIFO/LIFO Costing

Margin Analysis Reports

Submitting a Margin Analysis Load Run

Purging a Margin Analysis Load Run

Overhead Report

Period Close Reconciliation Report

Period Close Pending Transactions Report

Receiving Value Report

Shipping Transaction Summary Report

Transaction Value Historical Summary Report - Average/FIFO/LIFO Costing

Supply Chain Consolidated Bills of Material Cost Report

Supply Chain Indented Bills of Material Cost Report

WIP Standard Cost Adjustment Report

Windows and Navigator Paths

Windows and Navigator Paths

Cost Management Alerts

Oracle Cost Management Alerts

Oracle Cost Management Client Extensions

Client Extensions

      Types of Client Extensions

      Implementing Client Extensions

      Determining Your Business Requirements

      Designing Client Extensions

      Writing PL/SQL Functions/Procedures

Transaction Cost Extension

      Writing Transaction Cost Extensions

Account Generation Extension

Writing Account Generation Extensions for Standard Costing

Writing Account Generation Extensions for Average/FIFO/LIFO Costing

Cost Processing Cutoff Date Extension

Writing Cost Processing Cutoff Date Extensions

Project Cost Collector Transaction Client Extension

      Writing Project Cost Collector Transaction Client Extension

Project Cost Collector Accounting Extension

Periodic Average Costing Account Generation Extension

Periodic Average Costing Landed Cost Extension

Period Close Check for Shipping Transactions

Get Absorption Account Extension

Writing Get Absorption Account Extension

Validate Job Re-estimation Extension

Writing Validate Job Re-estimation Extension

FIFO/LIFO Layer Consumption Extension

Disable Accrual Accounting Extension

Writing Disable Accrual Accounting Extension

PAC Actual Cost Extension

Writing PAC Actual Cost Extension

PAC Beginning Balance Extension

Writing PAC Beginning Balance Extension

PAC Acquisition Cost Extension

Writing PAC Acquisition Cost Extension

PAC Acquisition Receipt Cost Extension

Writing PAC Acquisition Receipt Cost Extension

Supply Chain Cost Rollup Buy Cost Extension

Writing Supply Chain Cost Rollup Buy Cost Extension

Supply Chain Cost Rollup Markup Cost Extension

Writing Supply Chain Cost Rollup Markup Cost Extension

Supply Chain Cost Rollup Shipping Cost Extension

Writing Supply Chain Cost Rollup Shipping Cost Extensions

Oracle Cost Management Workflows

Account Generation Extension Workflow

      Customizing the Account Generation Extension Processes

      The Account Generation Extension Workflow Item Types

      Summary of the Account Generation Extension Workflow

      Account Generation Workflow Extension Process Activities

Product Line Accounting Setup

Product Line Accounting

Character Mode Forms and Corresponding GUI Windows

Oracle Cost Management Character Mode Forms and Corresponding GUI Windows

SLA Costing Events - Accounting

SLA Costing Events Model

Event Class Journal Line Type Conditions

Event Class and Journal Line Type Assignments

Event Transaction Type Mapping

Migration of AX-IC Rules Into SLA

Overview of Global Accounting Rules into SLA

Setting Up AX Support for SLA

Migration of Rules

Supporting References

Upgrade

Index