PeopleSoft SCM Cost Management Overview

PeopleSoft SCM Cost Management provides the control and flexibility you need to manage costs throughout your inventory and manufacturing processes. With powerful features that support multiple methods of costing, PeopleSoft Cost Management enables you to model your business exactly as you require it. With PeopleSoft Cost Management, you can:

  • Maintain multiple sets of books within an inventory business unit for financial, governmental, and management reporting purposes.

  • Define any number of cost methods to value inventory transactions; including, standard, actual, FIFO actual, LIFO actual, by specific lot ID or serial ID, perpetual weighted average, retroactive perpetual weighted average, periodic weighted average, or non-cost.

  • Determine the type of costing by item, inventory business unit, and cost book combination. This flexibility allows you to mix the type of costing within one inventory business unit; some items can use standard cost, other items can use actual cost, and so on. In addition, the same item can be costed differently using different cost books within the same inventory business unit.

  • Calculate the cost of each inventory transaction, including, material, conversion, conversion overhead, landed, inbound, outbound, and other costs based on your cost methods. The system also calculates and updates weighted average costs, purchase price variances, exchange rate variances, negative inventory depletions, consigned items, and return to vendor items.

  • Create accounting entries for all inventory transactions that have a financial impact on PeopleSoft Inventory and PeopleSoft Manufacturing. You can design transaction accounting for the basic transactions, location accounting, budget checking, interunit transfers, fund accounting, shipments on behalf of another revenue stream, and interunit expensed issues. These accounting entries can be posted to PeopleSoft General Ledger or a third-party general ledger system.

  • Calculate and track costs for makeable items in PeopleSoft Manufacturing. You can calculate the costs of makeable items, co-products, and by-products using standard, actual, or average cost methods. Additional costs besides material, labor, machine, and conversion costs, can be added to makeable items. The system enables you to revalue costs, analyze manufacturing performance, and perform cost simulations. You can closely monitor production costs at every stage in PeopleSoft Manufacturing using inquiry tools and reports to detect potential production variances and analyze completed production.

  • Manually adjust the actual or average cost of an item.

  • Include landed cost charges in an item's cost, including freight, insurance, duty, taxes, handling, and subcontracted services. Adjustments to landed costs based on the voucher in PeopleSoft Payables can be recorded in a variance account or added to the final cost of the item.

  • Record the cost of items transferred between inventory business units. The system calculates the correct transfer price based on the Transfer Pricing Definition component. Accounting entries are created based on your business configuration, including interunit sales and payable accounts if applicable.

  • Reconcile the cost of putaways in PeopleSoft Inventory with the vouchers in PeopleSoft Payables using the CM/AP Reconciliation Tool.

  • Review transaction costs and accounting entries using powerful inquiry tools and reports designed for financial and management accounting needs. You can monitor accounting entries before and after they are posted to the general ledger system.

Field or Control

Description

As of Date

The last date for which a report or process includes data.

Business Unit

An identification code that represents a high-level organization of business information. You can use a business unit to define regional or departmental units within a larger organization.

Description

Alphanumeric text up to 30 characters.

Effective Date

Date on which a table row becomes effective; the date that an action begins. For example, if you want to close out a ledger on June 30, the effective date for the ledger closing would be July 1. This date also determines when you can view and change the information. Pages or panels and batch processes that use the information use the current row.

EmplID (employee ID)

Unique identification code for an individual associated with your organization.

Language or Language Code

The language in which you want the field labels and report headings of your reports to print. The field values appear as you enter them.

Language also refers to the language spoken by an employee, applicant, or non-employee.

Process Frequency (group box)

Designates the appropriate frequency in the Process Frequency group box:

Once executes the request the next time the batch process runs. After the batch process runs, the process frequency is automatically set to Don't Run.

Always executes the request every time the batch process runs.

Don't Run ignores the request when the batch process runs.

Process Monitor

This button takes you to the Process List page, where you can view the status of submitted process requests.

Report ID

The report identifier.

Report Manager

This button takes you to the Report List page, where you can view report content, check the status of a report, and see content detail messages (which show you a description of the report and the distribution list).

Run

This button takes you to the Process Scheduler request page, where you can specify the location where a process or job runs and the process output format.

Run Control ID

A request identification that represents a set of selection criteria for a report or process.

SetID

An identification code that represents a set of control table information or TableSets. A TableSet is a group of tables (records) necessary to define your organization's structure and processing options.

Short Description

Alphanumeric text up to 15 characters.

Standard Unit of Measure (UOM)

A type of unit used for quantifying in PeopleSoft systems, and usually associated with items. Depending on the application, units of measure might describe dimensions, weights, volumes, or amounts of locations, containers, or business activities. Examples include inches, pounds, workhours, and standard cost dollars.

Unit (Business Unit)

An identification code that represents a high-level organization of business information. You can use a business unit to define regional or departmental units within a larger organization.

User ID

The system identifier for the individual who generates a transaction.

See the product documentation for PeopleTools: Process SchedulerPeopleTools: Applications User's Guide