This chapter covers the following topics:
Oracle Cost Management is a comprehensive solution that helps organizations project costs and perform cost accounting for supply chain transactions. These activities serve as a key component for complying with regulatory reporting and accounting requirements, streamlining the use of working capital in organizations, and improving profitability for businesses.
This section provides information on the common prerequisites, profile options, and data setups required for executing the Oracle Cost Management flows. Flow specific requirements are documented along with the flow in the subsequent sections.
The following is a prerequisite for executing the Oracle Cost Management flows:
The following accounting periods are open:
Inventory
General Ledger
Payables
Purchase Order
Receivables
Not applicable.
The following predefined data must be used:
Page Name | Field Name | Field Value |
---|---|---|
Responsibility | Responsibility Name | Manufacturing and Distribution Manager |
GL - Accounting Setup Manager -Ledger | Ledger Name | Vision Operations |
GL - Accounting Setup Manager -Ledger | Ledger Name | Singapore Distribution Center |
Item Costs | Cost Element | Material |
Item Template | Template | Purchased Item |
Item Template | Template | Finished Good |
Sub-Inventory | Sub-Inventory Code | Store |
Not applicable.
A global procurement (centralized) purchase process is one where one operating unit purchases the material on behalf of another operating unit.
The Global Procurement Purchase Process between Operating Units flow creates on-hand stock through global procurement purchase order receipts and verifies its distribution.
This section provides information on prerequisites, profile options, and data setups required to execute the Global Procurement Purchase Process between Operating Units flow.
PO_Global_Procurement_Asset_Item_Asset_SubInv
The following are the prerequisites for executing this flow:
Organizations are Standard and Average costing organizations
There are at least two operating units
Sub-inventory is Asset Subinventory
There are daily currency conversion rates
The tax setup is disabled
Not applicable.
The following predefined data must be used:
Window Name | Field Name | Field Value |
---|---|---|
Organization Parameters | Costing Method | Standard and Average |
The following data must be set up:
Window Name | Field Name | Field Value |
---|---|---|
Organization | Operating Unit | Vision Operations |
Organization | Organization | AVG - Average Costing Organization (Average costing enabled org |
Organization | Operating Unit | Singapore Distribution Center |
Organization | Organization | SNG – Singapore Distribution Center (Standard costing enabled org) |
Master Items | Template | Purchased Item Template |
Supplier | Supplier Name | Office Supplies, Inc. |
Intercompany Transaction Flow |
|
|
This flow performs the following:
Creates a bill of material (BOM) and routing with outside processing (OSP) operation
Releases a standard discrete job
Raises a purchase order for the OSP operation
Moves transactions and issues the material
Completes and closes the job
Verifies distributions for all transactions in a standard costing organization
This section provides information on prerequisites, profile options, and data setups required to execute the Purchase Order Receipt and Invoice – Outside Processing (OSP) Item with Shop Floor Destination flow.
PO_OSP_Item_Shopfloor_Destination_STD_CST_ORG
The following are the prerequisites for executing this flow:
Organization is an Average Costing enabled organization
Subinventory is Asset Subinventory
The tax setup is disabled
Moves transactions and issues the material
Completes and closes the job
Verifies distributions for all transactions in a standard costing organization
Not applicable.
The following predefined data must be used:
Window Name | Field Name | Field Value |
---|---|---|
Organization Parameters | Costing Method | Standard |
The following predefined data must be used:
Window Name | Field Name | Field Value |
---|---|---|
Organization | Organization | M1- Seattle Manufacturing (Standard Costing Enabled org.) |
Master Items | Components | Template - Purchased Item |
Master Items | Assembly | Template - Finished good |
Master Items | Outside Processing Item (OSP) | Template - Outside Processing |
Supplier | Supplier Name | Office Supplies, Inc. |
Site | NEW YORK |
This flow creates on-hand stock through purchase order receipts, and verifies the distributions in an LCM-enabled, Average Costing organization.
This section provides information on prerequisites, profile options, and data setups required to execute the Purchase Order Receipt – Landed Cost Management (LCM) Enabled Organization flow.
Purchase_Order_Receipt_LCM_Average_Costing_ORG
The following are the prerequisites for executing this flow:
Organization is an Average Costing enabled organization
Subinventory is Asset Subinventory
The tax setup is disabled
Not applicable.
The following predefined data must be used:
Window Name | Field Name | Field Value |
---|---|---|
Organization Parameters | Costing Method | Average |
The following data must be set up:
Window Name | Field Name | Field Value |
---|---|---|
Organization | Organization | Average Costing with LCM Enabled – <Organization Name> |
Master Item | Template | Template - Purchased Item |
Supplier | Supplier Name | Office Supplies, Inc. |
Site | NEW YORK | |
Landed Cost Management | Shipment Type | ST-01 |
Landed Cost Management | Charges Lines Tab – Type | Insurance |
This flow creates on-hand stock through purchase order receipts and accounting of purchase invoice with quantity and value difference. It also verifies the distributions in an average costing organization.
This section provides information on prerequisites, profile options, and data setups required to execute the Purchase Order Receipt and Invoice with Price Variance - Asset and Expense Item - Average Costing Organization flow.
PO_Receipt_IPV_Invoice_Average_Costing_ORG
The following are the prerequisites for executing this flow:
Organization is an Average Costing enabled organization
Subinventory is Asset Subinventory
The tax setup is disabled
Not applicable.
The following predefined data must be used:
Window Name | Field Name | Field Value |
---|---|---|
Organization Parameters | Costing Method | Average |
Purchase Order | Type | Standard Purchase Order |
The following data must be set up:
Window Name | Field Name | Field Value |
---|---|---|
Organization | Organization | AVG – Average Organization (Average Costing enabled organization) |
Master Item | Template | Template - Purchased Item |
Supplier | Supplier Name | Office Supplies, Inc. |
Site | NEW YORK |
This flow creates on-hand stock through purchase order receipts, accounts for purchase invoices, and verifies the distribution in an encumbrance enabled, standard costing organization. The primary purpose of the encumbrance is to avoid overspending on a budget.
This section provides information on prerequisites, profile options, and data setups required to execute the Purchase Order Receipt and Invoice - Encumbrance Enabled - FIFO Costing Organization flow.
PO_Receipt_Invoice_Asset_Item_Encumbrance_FIFO_CST_ORG
The following are the prerequisites for executing this flow:
Organization is an Average Costing enabled organization
Subinventory is Asset Subinventory
The budget amounts are defined
The tax setup is disabled
Not applicable.
The following predefined data must be used:
Window Name | Field Name | Field Value |
---|---|---|
Organization Parameters | Costing Method | FIFOFO |
Purchase Order | Type | Standard Purchase Order |
The following data must be set up:
Window Name | Field Name | Field Value |
---|---|---|
Organization | Operating Unit | Vision ENC |
Organization | Organization | EN4 |
Master Items | Template | Template - Purchased Item |
Financials Options, Encumbrance Tab |
|
|
Supplier | Supplier Name | Office Supplies, Inc. |
Site | NEW YORK | |
Define Budget | Budget | ENC Budget |
This flow performs the following activities:
Creates on-hand stock for the components through purchase order receipts
Creates bills with phantom items, lot based item, and yield quantity
Releases and moves the standard discrete job
Issues material and completes the work in process
Closes the job
Verifies distributions for all transactions in a Standard Costing organization
This section provides information on prerequisites, profile options, and data setups required to execute the Standard Discrete Job - Lot Based Material - Yield - Phantom-Standard Costing Organization flow.
WIP_Flow_LBM_Yield_Phantom_STD_CST_ORG
The following are the prerequisites for executing this flow:
Organization is a Standard Costing enabled organization
Subinventory is Asset Subinventory
The discrete job type is Standard
There are at least three components and one assembly
There are at least three resources and departments
Bills with the Basis as LOT and Yield as percent are created
The tax setup is disabled
Not applicable.
The following predefined data must be used:
Window Name | Field Name | Field Value |
---|---|---|
Purchase Order | Type | Standard Purchase Order |
The following data must be set up:
Window Name | Field Name | Field Value |
---|---|---|
Organization | Organization | M1 – Seattle Manufacturing (Standard Costing Enabled org.) |
Master Items | Components | Template - Purchased Item |
Master Items | Assembly | Template - Finished Good |
Supplier | Supplier Name | Office Supplies, Inc. |
Site | NEW YORK | |
WIP Accounting Classes | Define Ledger Accounts | Discrete |
This flow books a sales order and ships the material to a customer, with a pick to order (PTO) item in a standard costing enabled organization. This flow also verifies distribution for all transactions.
This section provides information on prerequisites, profile options, and data setups required to execute the Sales Order Shipment – Pick to Order (PTO Model) – Standard Costing Organization flow.
Sales_Shipment_RMA_PTO_Model_STD_Costing_ORG
The following are the prerequisites for executing this flow:
Organization is a Standard Costing enabled organization
Subinventory is Asset Subinventory
Not applicable.
The following predefined data must be used:
Window Name | Field Name | Field Value |
---|---|---|
Organization Parameters | Costing Method | Standard |
Purchase Order | Type | Standard Purchase Order |
The following data must be set up:
Window Name | Field Name | Field Value |
---|---|---|
Organization | Organization | M1 – Seattle Manufacturing (Standard Costing Enabled org) |
Master Items | Model Item | Template - PTO Model |
Master Items | Optional Item | Template - PTO Option Class |
Master Items | Inclusive Item | Template - Purchased Item |
Internal drop shipment is an order fulfillment method where the order taking organization does not maintain its own inventory, but the goods are directly delivered through the stocking operating unit to the customer.
This section provides information on prerequisites, profile options, and data setups required to execute the Internal Drops Shipment Flow between Operating Units flow.
SO_RMA_Internal_Dropship_To_Customer_Across_ORGS
The following are the prerequisites for executing this flow:
Organizations are Average and Standard Costing organizations
Subinventory is Asset Subinventory
The Inter-company Transaction Flow is set up
The daily exchange rate is defined
The price list is defined
The following profile option must be set:
Profile Option Name | Profile Option Value |
---|---|
INV:Advanced Pricing for Intercompany | No |
The following predefined data must be used:
Window Name | Field Name | Field Value |
---|---|---|
Item Template | Template | Finished Good |
Enter Price List | Price List Name | Corporate |
Workflow | Concurrent Request | Workflow process |
Auto Invoice | Concurrent Request | Auto Invoice Master Program |
Revenue Recognition | Concurrent Request | Revenue Recognition Master Program |
COGS Recognition | Concurrent Requests | Execute the following concurrent requests:
|
Intercompany AR Invoice | Concurrent Requests | Execute the following concurrent requests:
|
Intercompany AP Invoice | Concurrent Requests | Execute the following concurrent requests:
|
The following data must be set up:
Window Name | Field Name | Field Value |
---|---|---|
Organization | Operating Unit | Vision Operations |
Organization | Organization | AVG – Average Organization (Average Costing enabled organization) |
Organization | Operating Unit | Singapore Distribution Center |
Organization | Organization | SNG – Singapore Distribution Center (Standard Costing enabled Organization) |
Master Items | Assembly | Template – Finished Good |
Purchase Order | Type | Standard Purchase Order |
Supplier | Supplier Name | Office Supplies, Inc. |
Site | NEW YORK | |
Customer | Customer Name | Computer Service and Rentals (to create a sales order). |
Unit of Measure | Code | EA |
Intercompany Transaction Flow |
|
|
The external drop shipment is an order fulfillment method where the order taking organization does not maintain its own inventory, but fulfills the order through a third party vendor who directly ships to the end customer and verifies distributions for all transactions.
This section provides information on prerequisites, profile options, and data setups required to execute the External Drop Shipment Flow between Operating Units flow.
SO_RMA_External_Dropship_To_Customer_Across_ORGS
The following are the prerequisites for executing this flow:
Organizations are Average and Standard Costing organizations
Subinventory is Asset Subinventory
The Inter-company Transaction Flow is set up
The daily exchange rate is defined
The price list is defined
The following profile option must be set:
Profile Option Name | Profile Option Value |
---|---|
INV:Advanced Pricing for Intercompany | No |
The following predefined data must be used:
Window Name | Field Name | Field Value |
---|---|---|
Item Template | Template | Finished Good |
Enter Price List | Price List Name | Corporate |
Workflow | Concurrent Request | Workflow process |
Auto Invoice | Concurrent Request | Auto Invoice Master Program |
Revenue Recognition | Concurrent Request | Revenue Recognition Master Program |
COGS Recognition | Concurrent Requests | Execute the following concurrent requests:
|
Intercompany AR Invoice | Concurrent Requests | Execute the following concurrent requests:
|
Intercompany AP Invoice | Concurrent Requests | Execute the following concurrent requests:
|
The following data must be set up:
Window Name | Field Name | Field Value |
---|---|---|
Organization | Operating Unit | Vision Operations |
Organization | Organization | AVG – Average Organization (Average Costing enabled organization) |
Organization | Operating Unit | Singapore Distribution Center |
Organization | Organization | SNG – Singapore Distribution Center (Standard Costing enabled Organization) |
Master Items | Assembly | Template – Finished Good |
Purchase Order | Type | Standard Purchase Order |
Supplier | Supplier Name | Office Supplies, Inc. |
Site | NEW YORK | |
Customer | Customer Name | Computer Service and Rentals (to create a sales order). |
Unit of Measure | Code | EA |
Intercompany Transaction Flow |
|
|
This flow transfers materials from an Average inventory organization to a Standard Costing organization through an internal sales order, and verifies distribution for all transactions. The inventory organization is a different operating unit and the shipping network is FOB-Receipt.
This section provides information on prerequisites, profile options, and data setups required to execute the Internal Sales Order Flow - FOB Receipt- PAC Organization flow.
ISO_FOB_Receipt_PAC
The following are the prerequisites for executing this flow:
Organizations are Average and Standard Costing organizations
Subinventory is Asset Subinventory
A shipping network exists between the two organizations
The daily exchange rate is defined
The price list is defined
The periodic accounting period is open
The following profile option must be set:
Profile Option Name | Profile Option Value |
---|---|
INV:Advanced Pricing for Intercompany Invoice | No |
CST: Transfer Pricing Option | Yes, Price As Incoming Cost |
INV:Intercompany Invoice for Internal Orders | Yes |
The following predefined data must be used:
Window Name | Field Name | Field Value |
---|---|---|
Item Template | Template | Finished Good |
Enter Price List | Price List Name | Corporate |
The following data must be set up:
Window Name | Field Name | Field Value |
---|---|---|
Organization | Organization | M1- Seattle Manufacturing (Standard Costing enabled org) |
Organization | Organization | M1 - Child orgAVG – Average Organization (Average Costing enabled org) |
Master Items | Assembly | Template - Purchased Item |
Purchase Order | Type | Standard Purchase Order |
Supplier | Supplier Name | Office Supplies, Inc. |
Site | NEW YORK | |
Unit of Measure | Code | EA |
Cost Type | Code | CG |