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Reviewing Actual and Average Costing for Manufacturing

PeopleSoft Cost Management provides you a number of ways to track actual costs of a production ID or production schedule.

For purposes of computing actual costs of production IDs, if any component items (make or buy) use an actual cost profile, then those final lower level actual costs are necessary for computing a final actual cost at the next level. PeopleSoft provides the actual cost inquiry to display production IDs with unfinalized costs as well as the dependencies underneath each level.

Before completing and finalizing a production ID's costs, it is useful to see a projected actual cost variance with visibility into details where an entry that is expected per the standard may have incomplete or unreasonably different actual costs, or there are actual costs for details that are not expected. This is provided by the Compare Cost Measures component, where you can make corrections before posting the costs.

Pages Used to Review Actual Costs in Manufacturing Environments

Page Name

Definition Name

Navigation

Usage

Actual Cost Inquiry

CM_ACTUALCOST_INQ

select Cost Accounting, then select Item Costs, then select Review Costs, then select Actual Production Costs, then select Production Selection

(Manufacturing environment only) For makeable items, you can view the actual cost of production based on the production ID or the combination of production area and item ID. This inquiry page displays the actual costs of production broken down by operation sequence, cost category, and conversion code. The production status, item ID, book name, and completed quantity are also displayed. The actual costs are calculated by the Transaction Costing process (within the Cost Accounting Creation process).

Proactive Production Cost - PID Cost

CE_PRDNID_COSTING

  • select Cost Accounting, then select Item Costs, then select Review Costs, then select Proactive Production Cost

  • select Production Control, then select Define Production, then select Production IDs/Schedules, then select Maintain PIDs, then select Production ID Maintenance. Select the Review Proactive Costing option in the Action Menu field.

For makeable items, this page provides advanced proactive visibility into the costing of a production ID during each phase of production. You can save the current costs under a cost measure type for reviewing and comparing on the Compare Cost Measure component.

Primary Products & Co-Product Cost

CE_OUTPUT_COST_SEC

select Select the Primary Product & Co-Product link on the Proactive Production Cost - PID Cost.

View the projected costs for the primary product and co-products of this production ID.

Compare Cost Measures - Output Analysis

CE_COST_ANALYTICS

select Cost Accounting, then select Item Costs, then select Review Costs, then select Compare Cost Measures, then select Output Analysis

Review and compare the cost calculations for the output from a production ID (products, co-products, and so on) at various stages of production. Cost comparisons can include the production ID as planned, as produced, the frozen standard costs, the actual production costs, or other stages of production.

Compare Cost Measures - Input Analysis

CE_COST_ANALYTICS2

select Cost Accounting, then select Item Costs, then select Review Costs, then select Compare Cost Measures, then select Input Analysis

Review and compare the cost calculations for the input into a production ID (components, direct, and indirect costs) at various stages of production. Cost comparisons can include the production ID as planned, as produced, the frozen standard costs, the actual production costs, or other stages of production.

Sequences for the Cost Measure

CE_COST_MEASUR_SEC

select Enter a value in the Cost Measure 1 or Cost Measure 2 fields of the Compare Cost Measures component. If more than one sequence has been created for this cost measure, then select the system takes you to this page.

Select the sequence number for viewing costs for this business unit, production ID, and item ID combination.

Proactive Production Cost - PID Cost Page

Use the Proactive Production Cost - PID Cost page (CE_PRDNID_COSTING) to for makeable items, this page provides advanced proactive visibility into the costing of a production ID during each phase of production.

You can save the current costs under a cost measure type for reviewing and comparing on the Compare Cost Measure component.

For makeable items, this page provides proactive visibility into the costing of a production ID during each phase of production. By using this page, you can view and capture the current costs of a production ID based on the component list and operations list. The captured costs are a snapshot of the production ID's costs at a particular point in time, such as during the as planned stage (before the production ID is released and changed by production) or the as produced stage (after the production ID is changed during production). For any production ID, you can create multiple snapshots (or cost measures) and save them under a unique combination for cost measure, description, and sequence number. These cost measures can then be compared to each other and the actual or frozen standard costs of the production ID by using the Compare Cost Measures component. By breaking the costs out into as planned and as produced cost measurements, you can see the impact on anticipated costs throughout the life cycle of the production ID.

Save this page to store the current cost calculations by cost measure type and sequence. The cost calculations are saved to the CE_PRDNID_COST record. These cost measures can be compared to each other and the actual or frozen standard costs of the production ID by using the Compare Cost Measure component.

Compare Cost Measures - Output Analysis Page

Use the Compare Cost Measures - Output Analysis page (CE_COST_ANALYTICS) to review and compare the cost calculations for the output from a production ID (products, co-products, and so on) at various stages of production.

Cost comparisons can include the production ID as planned, as produced, the frozen standard costs, the actual production costs, or other stages of production.

Image: Compare Cost Measures - Output Analysis page

This example illustrates the fields and controls on the Compare Cost Measures - Output Analysis page. You can find definitions for the fields and controls later on this page.

Compare Cost Measures - Output Analysis page

Review and compare the cost calculations for a production ID at various stages of production. Enter the business unit, cost book, production ID or production schedule for the production costs that you want to review.