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Contents
List of Figures
Title and Copyright Information
Preface
Audience
Documentation Accessibility
Related Documents
Conventions
1
Overview to Product Costing and Manufacturing Accounting
1.1
System Integration
1.2
Features
1.3
Product Costing and Manufacturing Accounting Integration
1.4
Achieving Effective Cost Management
1.5
Tables
1.6
Menu Overview
1.6.1
Product Costing
1.6.1.1
Fast Path Commands
1.6.2
Manufacturing Accounting
1.6.2.1
Fast Path Commands
Part I Product Costing
2
Overview to Product Costing
2.1
Objectives
2.2
About Product Costing
2.3
About Flex Accounting
2.4
What Are Standard Costs?
2.5
Why Maintain Standard Costs?
2.6
Simulated Versus Frozen Costs
2.7
What are Actual Costs?
2.8
What are Parent Items?
2.9
What Are Cost Components?
2.10
What is WIP Revaluation?
3
Set Up Product Costing
3.1
Setting Up Product Costing
3.2
Setting Up Accounting Cost Quantities
3.3
Setting Up Item Cost Levels
3.4
Converting Item Cost Levels
3.4.1
Before You Begin
3.4.2
Processing Options
3.5
Setting Up Item Costs
3.5.1
What You Should Know About
3.5.2
What You Should Know About
3.5.3
Processing Options
3.6
Setting Up Cost Components
3.7
Setting Up Manufacturing Constants for Product Costing
3.7.1
What You Should Know About
3.8
Setting Up Simulated Rates for a Work Center
3.8.1
Before You Begin
3.9
Setting Up Actual Rates for a Work Center and Overhead
4
Review Bills of Material and Routings
4.1
Review Bills of Material and Routings
4.2
Reviewing Bills of Material and Routings for Product Costing
4.3
Reviewing Product Costing in Bills of Material
4.4
Reviewing Routings for Product Costing
5
Create Simulated Costs
5.1
Creating Simulated Costs
5.2
Creating the Costing Exceptions Report
5.2.1
What You Should Know About Processing Options
5.2.2
Processing Options
5.3
Creating a Simulated Rollup
5.3.1
Cumulative Yield
5.3.2
Operation Scrap
5.3.3
Before You Begin
5.3.4
What You Should Know About
5.3.5
Processing Options
6
Work with Simulated Cost Components
6.1
Working with Simulated Cost Components
6.2
Reviewing and Revising Simulated Cost Components
6.2.1
What You Should Know About
6.2.2
Processing Options
6.3
Setting Up Standard Rate and Factor Codes
6.3.1
What You Should Know About
6.4
Assigning Values to User Defined Cost Components
6.4.1
Assigning a Net Added Value Manually
6.4.2
Assigning a Predefined Value
6.4.3
Assigning a Calculated Value by Multiplying a Rate and Factor
6.5
Reviewing the Standard Cost Simulation Report
6.6
Setting Up Cost Bucket Codes for Costed Bills of Material
6.6.1
What You Should Know About
6.7
Reviewing Costed Bills of Material
6.7.1
What You Should Know About
6.7.2
Processing Options
6.8
Setting Up Operation Bucket Codes for Costed Routings
6.8.1
What You Should Know About
6.9
Reviewing a Costed Routing
6.9.1
What You Should Know About
6.9.2
Processing Options
7
Review Costing Information
7.1
Reviewing Costing Information
7.2
Reviewing Frozen Cost Components
7.3
Reviewing the Item Ledger
7.3.1
Processing Options
7.4
Reviewing the Single Level Costed Bill of Material Report
7.4.1
Processing Options
7.5
Reviewing the Multi-Level Costed Bill of Material Report
7.5.1
Processing Options
7.6
Reviewing the Cost Components Report
7.6.1
Processing Options
7.7
Reviewing the Cost Integrity Report
7.7.1
Processing Options
7.8
Reviewing the Comprehensive Cost Comparison Report
7.8.1
Processing Options
8
Update Frozen Costs
8.1
Updating Frozen Costs
8.1.1
Journal Entries for On-Hand Balances
8.1.1.1
Detail Journal Entries
8.1.1.2
Summary Journal Entries
8.1.2
Journal Entries for WIP Revaluation
8.1.2.1
Detail Journal Entries
8.1.2.2
Summary Journal Entries
8.1.3
Before You Begin
8.1.4
What You Should Know About
8.1.5
Reports
8.1.6
Processing Options
9
Work with Additional Costing Features
9.1
Copying Costs
9.1.1
Processing Options
9.2
Copying Frozen Costs to Simulated Costs
9.2.1
Processing Options
9.3
Updating Sales Order Price/Cost
9.3.1
Processing Options
9.4
Updating Product Costs
9.4.1
What You Should Know About
9.4.2
Processing Options
Part II Product Costing in ERPx Environment
10
Overview to Product Costing in ERPx Environments
10.1
Objectives
10.2
About Product Costing in ERPx Environments
11
Understand Batch Product Costing
11.1
About Batch Product Costing
11.1.1
What You Should Know About
12
Understand Product Costing for Planning Items
12.1
About Product Costing for Planning Items
12.1.1
Non-Stock Kit Items
13
Work with Process Industry Costing
13.1
Working with Process Industry Costing
13.2
Reviewing Product Costing for Processes
13.3
Reviewing Product Costing for Intermediates
13.4
Reviewing Product Costing for Ingredients
13.5
Reviewing Product Costing for Co- and By-Products
13.5.1
Example: Feature Cost Percent and Co-/By-Product Costing (Release A9.3 Update)
13.5.2
What You Should Know About
13.6
Calculating Costs for Co- and By-Products
13.7
Reviewing a Costed Process
13.7.1
What You Should Know About
13.7.2
Processing Options
13.7.3
Cost Extras
13.7.4
Cost Extras (X Cost) on Ingredients
13.8
Reviewing Product Costing for Percent Bills of Material
14
Understand Configured Items
14.1
About Costing for Configured Items
14.1.1
Example: Costing a Configured Item
14.1.2
Process Work Orders Program
14.1.2.1
Example: Process Work Orders Data Sequence Setup
Part III Manufacturing Accounting
15
Overview to Manufacturing Accounting
15.1
Objectives
15.2
About Manufacturing Accounting
15.3
About Flex Accounting
15.4
Accounting Fundamentals
15.4.1
The Accounting Equation
15.4.2
T-Accounts
15.4.3
General Ledger Transactions
15.5
Accounts and Account Numbers
15.5.1
Business Units
15.5.2
Object and Subsidiary Accounts
15.5.2.1
Object - "Major Account"
15.5.2.2
Subsidiary - "Minor Account"
15.5.3
Account Numbers
15.5.4
Level of Detail
15.6
What is Subledger Accounting?
15.6.1
Subledger Types
15.6.1.1
Core Subledger Types
15.6.1.2
Other Subledger Types
15.6.2
Posting Edit Codes
15.7
What is the Chart of Accounts?
15.7.1
Example: Chart of Accounts
15.8
What are Work Order Variances?
16
Set Up Manufacturing Accounting
16.1
Understanding Manufacturing Flex Accounting
16.2
Understanding Orderless Accounting
16.3
Setting Up Manufacturing Accounting
16.4
Setting Up General Ledger (G/L) Class Codes
16.5
Reviewing Manufacturing AAIs
16.5.1
What You Should Know About
16.5.2
Processing Options
16.6
Reviewing Outside Operations and Open Receipts
16.6.1
Processing Options
16.7
Outside Operations Open Receipts Reporting
16.7.1
Processing Options
17
Work with Work Orders
17.1
Creating a Work Order (P48013) (Release A9.3 Update)
17.2
Attaching a Parts List and Routing Instructions
17.2.1
Processing Options
17.3
Issuing Parts to Work Orders
17.3.1
Processing Options
17.4
Recording Hours and Quantities Used
17.4.1
What You Should Know About
17.4.2
Hours and Quantities Update (P31422)
17.5
Recording Component Scrap
17.5.1
Processing Options
17.6
Recording Completions to Work Orders
17.6.1
What You Should Know About
17.7
Reviewing the Open WIP Balance by G/L Account Report
18
Create Journal Entries
18.1
Creating Journal Entries
18.1.1
Journal Entries and the Three-Tier Process
18.1.2
Detail and Summary Journal Entries
18.2
Creating Journal Entries for Work in Process or Completions
18.2.1
Hierarchy Search for the Appropriate DMAAI
18.2.2
Configured Items
18.2.3
Processing Options
18.3
Reviewing Variances (P3102)
18.3.1
What You Should Know About
18.4
Creating Journal Entries for Variances
18.4.1
Before You Begin
18.4.2
Processing Options
18.4.3
Using the Close Actual Cost Work Order (P31806)
18.4.4
Processing Options
18.5
Creating Journal Entries for Bulk Manufacturing Gains and Losses
18.5.1
Processing Options
18.6
Reviewing Summarized Work Order Journal Entry Batches
19
Review General Ledger Batches
19.1
Reviewing General Ledger Batches
19.1.1
Before You Begin
20
Post to the General Ledger
20.1
Posting to the General Ledger
20.2
Posting Manufacturing Journal Entries
20.2.1
Pre-Post Process
20.2.2
Post Process
20.2.3
Before You Begin
20.2.4
Processing Options
20.3
Reviewing the Posting Edit Report for Manufacturing
20.3.1
Common Posting Errors
20.4
Reviewing the Posting Journal Report
20.5
Reviewing the Item Ledger/Account Integrity Report
20.5.1
What You Should Know About
20.5.2
Before You Begin
20.5.3
Processing Options
20.6
Reviewing World Writer Reports for Manufacturing Accounting
20.6.1
Reviewing Work Order Activity (Amounts)
20.6.2
Reviewing Work Order Activity (Units)
20.6.3
Reviewing Engineering Variance
20.6.4
Reviewing Planned Variance (to Current)
20.6.5
Reviewing Planned Variance (to Standard)
20.6.6
Reviewing Material Usage Variances
20.6.7
Reviewing Efficiency Variances
20.6.8
Reviewing Total/WIP and Other Variances
20.6.9
Reviewing Open Work Order Valuation
20.6.10
Reviewing Completed Work Order Valuation
20.6.11
Reviewing Work Order Amount Variances
20.6.12
Reviewing Manufacturing Accounting Tables
20.6.13
Reviewing Variance Flag Exceptions
21
Define Flex Accounting
21.1
Understanding Flex Accounting
21.2
Defining Flexible Account Numbers
21.2.1
What You Should Know About
21.2.2
Processing Options
22
Manufacturing Accounting in ERPx Environments
22.1
Objectives
22.2
About Manufacturing Accounting in ERPx Environments
22.3
About Process Industry Accounting
22.3.1
About Unaccounted Units in Process Industry Accounting
22.3.2
About Calculated Amounts in Process Industry Accounting
Part IV Processing Options
23
Product Costing Processing Options
23.1
Item Cost Level Conversion (P41815)
23.2
Item Cost Revisions (P4105)
23.3
Costing Exceptions (P30801)
23.4
Cost Simulation (P30820)
23.5
Item Cost Components (P30026)
23.6
Costed Bill of Material Inquiry (P30206)
23.7
Costed Routing Inquiry (P30208)
23.8
Item Cost Update (P30835)
23.9
Item Ledger - Costs (P4111)
23.10
Costed Bill (P30440)
23.11
Multi-Level Costed Bill (P30445)
23.12
Cost Components (P30026P)
23.13
Cost Component/Ledger Integrity (P30543)
23.14
Comprehensive Cost Comparison-Cost Lvl 1 (P30550)
23.15
Copy Component Cost Values (P30890)
23.16
Cost Simulation Reset (P30850)
23.17
Update Sales Cost, Price, or Exchange Rate (P42950)
23.18
Item Cost Revisions (P4105)
24
Product Costing in ERPx Environments Processing Options
24.1
Costed Routing Inquiry (P30208)
24.2
Work Center Rate Revisions - Z File (P30061Z)
25
Manufacturing Accounting Processing Options
25.1
AAI Revisions (P40901)
25.2
Generate and Print Work Orders (P31410)
25.3
Work Order Inventory Issues (P31113)
25.4
Component Scrap Transactions (P31116)
25.5
Manufacturing WIP Journal Entries (P31802)
25.6
Manufacturing Variance Journal Entries (P31804)
25.7
Work Order Closing and Clear WIP (P31806)
25.8
Manufacturing Accounting for Orderless Completion (P31862)
25.9
PO/Receipt/Voucher Inquiry (P43260)
25.10
Purchase Order/Receipt/Voucher Report (P43560)
25.11
Gain/Loss Analysis Report (P415402)
25.12
General Ledger Post (P09800)
25.13
Item Ledger/Account Integrity (P41543)
25.14
Manufacturing Work Order Entry - Z File (P48013Z)
A
Calculations in Cost Rollup
A.1
Material Cost Components
A.1.1
A1 (Purchased Material Cost)
A.1.2
A2 (Material Scrap)
A.2
Routing Cost Components
A.2.1
B1 (Direct Labor)
A.2.2
B2 (Setup Labor)
A.2.3
B3 (Machine Run)
A.2.4
B4 (Labor Efficiency)
A.2.5
C1, C2 (Variable/Fixed Machine Overhead)
A.2.6
C3, C4 (Variable/Fixed Labor Overhead)
A.3
Outside Operation Cost Components (Dx)
A.3.1
Manufacturing WIP Journal Entries (P31802)
B
Calculations for Variances
B.1
Standard Costs
B.2
Current Costs
B.3
Planned Costs
B.4
Actual Costs
B.5
Completed/Scrapped Costs
C
Purchase Price Variance
C.1
Example: Purchase Price Variance and Material Burden
D
Functional Servers
D.1
About Functional Servers
D.1.1
Example: Voucher Processing Functional Server
E
Files and Fields Updated
E.1
Files and Fields Updated
F
Troubleshooting Techniques for Product Costing
F.1
Run the Integrity Analysis Program (P30601)
F.2
Verify the Processing Options for P30820
F.3
Review A1 Cost Setup
F.4
Review Batch Quantity Setup
F.5
Adjust Primary Unit of Measure
F.6
Adjust the B1 or B2 Costs
F.7
Adjust the B3 through C4 Costs
F.8
Adjust the D1, D2, D3 Costs
G
Routing Cost Type Calculations
G.1
B1 Direct Labor
G.1.1
Example:
G.2
B2 Setup Labor
G.2.1
Example:
G.3
B3 Machine Run
G.3.1
Example:
G.4
B4 Labor Efficiency Cost
G.4.1
Example:
G.5
C1 Machine (Mach) Variable (Var) Overhead (O/H) Cost
G.5.1
Example:
G.6
C2 Machine Fixed Overhead Cost
G.6.1
Example:
G.7
C3 Labor Variable Overhead
G.7.1
Example:
G.8
C4 Labor Fixed Overhead
G.8.1
Example:
H
Import Mass Data into Manufacturing Systems
Index
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