This chapter covers the following topics:
Oracle Process Manufacturing Cost Management combines detailed cost tracking features with flexible analytical tools to help process manufacturers determine their true product costs. Oracle Process Manufacturing Cost Management supports Standard, Actual and Lot costing types to calculate costs and create reports to analyze data at the most granular level. Using Oracle Subledger Application, necessary accounting entries are created for all the transactions.
This section provides information on the common prerequisites, profile options, and data setups required for executing the Oracle Process Manufacturing Cost Management flows. Flow specific requirements are documented along with each flow in the subsequent sections.
The following are the prerequisites for executing the flows:
The inventory accounting period is open.
The general ledger period is open.
Not applicable.
Not applicable.
Not applicable.
This flow validates costing distributions for deferred COGS (Cost Of Goods Sold) and customer returns, when both Sales Order Return Material Authorization (RMA) and Revenue Recognition fall in the same accounting period, after revenue has been recognized.
This section provides information on prerequisites, profile options, and data setups required to execute the Process Manufacturing Make to Order flow.
OPM_Distributions_For_Cust_Returns_After_Revenue_Recognition
The following are the prerequisites for executing this flow:
OPM Costing calendar is defined.
GL Period for OPM US Ledger is open.
The inventory accounting period is open.
The AR Periods are open.
The following profile options must be set:
| Profile Option Name | Profile Option Value |
|---|---|
| INV: Advanced Pricing for Intercompany Invoice | Yes |
| INV: Advanced Pricing for Inter-Org Transfers | No |
| QP: Pricing Transaction Entity | Order Fulfillment |
| QP: Source System Code | Oracle Pricing |
| SLA: Accounting Methods Builder Context | OPM |
The following predefined data must be used:
| Window Name | Field Name | Field Value |
|---|---|---|
| Responsibility | Responsibility Name |
|
| Item Template | Template | Process Item (with process manufacturing attributes enabled) |
| OPM Financials: Setup: Fiscal Policy | Cost Type | PMAC (Actual Costing) |
| Accounting Setup Manager | Ledger Name | OPM US |
Not applicable.
| Window Name | Field Name | Field Value |
|---|---|---|
| Organization | Organization | PRU - US Operations (Process Manufacturing) |
| Organization | Inventory Organization | PR is the item master organization PR1- Main Process Manufacturing |
| Supplier | Supplier Name | Bigmart (and site as BENTONVILLE) |
| Order Management | Default Order Type | Standard (Process) |
| Enter Price List | Price List Setup | Process |
| Define Shipping Method | Shipping Method | DHL |
| Unit of Measure | Unit of Measure | LB & EA |
This flow validates distributions for internal order material transfer from a discrete manufacturing enabled inventory organization to a process manufacturing enabled inventory organization across operating units. It further processes the invoice using both Lot Cost and Actual Cost methods.
This section provides information on prerequisites, profile options, and data setups required to execute the Distributions for Intercompany Transfers flow.
OPM_Costing_Distributions_For_Intercompany_Transfers
The following are the prerequisites for executing this flow:
The OPM costing calendar is defined.
The GL period for OPM US Ledger is open.
The Inventory accounting periods are open.
The Control Purchasing periods are open.
AR periods are open.
AP periods are open
The following profile options must be set:
| Profile Option Name | Profile Option Value |
|---|---|
| INV: Intercompany Invoice for Internal Orders | Yes |
| CST: Transfer Pricing Option | Yes, Price Not As Incoming Cost |
| INV: Advanced Pricing for Intercompany Invoice | No |
| QP: Pricing Transaction Entity | Order Fulfillment |
| QP: Source System Code | Oracle Pricing |
| SLA: Accounting Methods Builder Context | OPM |
The following predefined data must be used:
| Window Name | Field Name | Field Value |
|---|---|---|
| Responsibility | Responsibility Name |
|
| Item Template | Template | Process Item (with process manufacturing attributes enabled) |
| OPM Financials: Setup: Fiscal Policy | Cost Type | LOTC (Lot Cost Method) PMAC (Actual Costing) |
| OPM Financials: Setup: Cost Calendars | Cost Calendar | 2013 |
| Accounting Setup Manager | Ledger Name | OPM US |
The following data must be set up:
| Window Name | Field Name | Field Value |
|---|---|---|
| Organization | Organization | Vision Operations |
| Organization | Inventory Organization | V1 is the item master org M1- Seattle Manufacturing |
| Organization | Organization | PRU - US Operations (Process Manufacturing) |
| Organization | Inventory Organization | PR is the item master org PR1-Main Process Manufacturing |
| Supplier | Supplier Name | Use Bigmart as supplier for creating Purchase Orders and site as BENTONVILLE |
| Order Management | Default Order Type | Standard (Process) |
| Order Management | Default Invoice Transaction Type | Intercompany |
| Enter Price List | Price List Setup | Process |
| Define Shipping Method | Shipping Method | DHL |
| Unit of Measure | Unit of Measure | LB & EA |
| Purchasing, Approval Hierarchy | Approver for Internal Requisitions and Internal Orders | Copeland, Ms. Sandra |
This flow validates costing distributions for lot cost adjustments and burdens using the lot cost processor in an OPM enabled organization.
This section provides information on prerequisites, profile options, and data setups required to execute the Distributions for Purchase Order Including Lot Cost Adjustments and Burdens flow.
OPM_Distributions_For_PO_With_LotCost_Adjstmnts_And_Burdens
The following are the prerequisites for executing this flow:
OPM Costing Calendar is defined.
GL Period for OPM US Ledger is open.
The inventory accounting periods are open.
The Control Purchasing Periods are open.
Not applicable.
The following predefined data must be used:
| Window Name | Field Name | Field Value |
|---|---|---|
| Responsibility | Responsibility Name |
|
The following data needs to be set up:
| Window Name | Field Name | Field Value |
|---|---|---|
| Organization | Organization | PRU - US Operations (Process Manufacturing) |
| Organization | Inventory Organization | PR is the item master org PR1- Main Process Manufacturing |
| Supplier | Supplier Name | Use Bigmart as supplier for creating purchase orders and site as BENTONVILLE |
| Unit of Measure | Unit of Measure | LB & EA |
| OPM Financials, Setup | Lot Cost Type | LOT-RT |
| OPM Financials | Resource | 1-CLEAN |
| OPM Financials | Component Class | 1-CLEAN |
| OPM Financials | Analysis Code | IND |
This flow validates landed cost charges associated with a Purchase Order, AP invoice charge variance, and invoice item cost variance, in an OPM-LCM enabled pre-receiving organization.
This section provides information on prerequisites, profile options, and data setups required to execute the Distributions for Purchase Order Using Landed Cost Management (LCM) Pre-Receiving Organization flow.
OPM_Costing_Dist_For_PO_Using_LCM_ Pre_Receiving_ORG
The following are the prerequisites for executing this flow:
The OPM costing calendar is defined.
The GL period for OPM US Ledger is defined.
The inventory accounting periods are open.
The Control Purchasing periods are open.
AP periods are open.
Organization is an OPM-LCM enabled pre-receiving organization.
Receiving options are defined for the OPM-LCM enabled pre-receiving organization.
Default shipment types are defined in the Landed Cost Management page for this OPM-LCM organization.
The following profile options must be set:
| Profile Option Name | Profile Option Value |
|---|---|
| INL: Item Category Set | Product Catalog |
| QP: Blind Discount Option | Yes |
| QP: Licensed for Product | Purchasing |
| QP: Pricing Perspective Request Type | Purchase Order |
| QP: Pricing Transaction Entity | Procurement |
| QP: Source System Code | Oracle Purchasing |
| SLA: Accounting Methods Builder Context | OPM (The context value defined by user while creating SLA Accounting) |
The following predefined data must be used:
| Window Name | Field Name | Field Value |
|---|---|---|
| Responsibility | Responsibility Name |
|
The following data must be set up:
| Window Name | Field Name | Field Value |
|---|---|---|
| Organization | Organization | PRU - US Operations (Process Manufacturing) |
| Organization | Inventory Organization | PR is the item master organization Org Code: LO1 (an OPM-LCM Enabled Org) Org Name: LCM-OPM ORG1 |
| Supplier | Supplier Name | Goodway (supplier for creating purchase orders, and site as SAN FRANCISCO) |
| Landed Cost Management | Shipment Type | ST-01 |
| OPM Financials | Cost Factors | INSURANCE (as LCM Charge) |
| Unit Of Measure | Unit of Measure | LB & EA |
This flow validates cost distributions for a product batch. It also validates the process by which ingredient costs, or lower level costs, are rolled up to the product cost through formal setups like formula, recipe and routing in scenarios where percentage burdens are set up using Standard Costing.
This section provides information on prerequisites, profile options, and data setups required to execute the Costing Distributions for Production Batches flow.
OPM_Costing_Distributions_For_Production_Batches
The following are the prerequisites for executing this flow:
The OPM costing calendar is defined.
The GL period for OPM US Ledger is open.
Inventory accounting periods are open.
Control Purchasing periods are open.
Not applicable.
The following predefined data must be used:
| Window Name | Field Name | Field Value |
|---|---|---|
| Responsibility | Responsibility Name |
|
The following data must be set up:
| Window Name | Field Name | Field Value |
|---|---|---|
| Organization | Organization | PRU - US Operations (Process Manufacturing) |
| Organization | Inventory Organization | PR is the item master organization PR1- Main Process Manufacturing |
| Supplier | Supplier Name | Bigmart (supplier for creating purchase orders and site as BENTONVILLE) |
| Unit Of Measure | Unit of Measure | LB & EA |
| Process Engineer | Activities | MIXING, FILTERING, STAINING |
| Process Engineer | Operations | MIXING, FILTERING, STAINING |
| OPM Financials | Resource | 1-LABOR,TEST |