PeopleSoft SCM Cost Management Integration

Inventory

Integration with PeopleSoft Inventory includes:

• PeopleSoft Cost Management calculates the cost and creates the accounting entries to record putaways, shipments, adjustments, and other material movements in PeopleSoft Inventory. PeopleSoft Cost Management receives costing information from PeopleSoft Purchasing, Payables, and Manufacturing to record and update the cost of stock in each inventory business unit.

• The Cost Rollup process in PeopleSoft Cost Management can calculate the costs of an inventory item. For manufactured items, the Update Production process (Cost Update/Revalue process page) then records these costs to be used when the item is putaway in PeopleSoft Inventory.

General Ledger

Integration with PeopleSoft General Ledger includes:

• Accounting entries recording the activity in PeopleSoft Inventory are retrieved from PeopleSoft Cost Management and used as input to create journal entries that are posted in the PeopleSoft General Ledger business unit tied to the Inventory business unit.

• PeopleSoft Cost Management enables you to analyze financial transactions online by using the financial inquiry pages. You can track financial transactions throughout the audit trail by drilling up to the journal entries in GL and drilling down to the accounting entries in PeopleSoft Cost Management.

Commitment Control

Integration with PeopleSoft Commitment Control includes:

• A requisition or purchase order is entered in PeopleSoft Purchasing using commitment control and a pre-encumbrance or encumbrance is established. If the purchase order is sourced from PeopleSoft Inventory, then the encumbrance is relieved and replaced with a expenditure against the budget when the Accounting Line Creation process in PeopleSoft Cost Management is run with the Budget Check Accounting Lines check box selected to run the Commitment Control Budget Processor.

• An expenditure is recorded in the budget when material stock request is created and stock is issued from PeopleSoft Inventory using a ChartField combination set up as a budgetary account for commitment control. The deduction to the budget occurs when you run the Accounting Line Creation process in PeopleSoft Cost Management with the Budget Check Accounting Lines check box selected.

Payables

Integration with PeopleSoft Payables includes:

• When a consigned item or VMI consigned item is consumed using any one of various transactions in PeopleSoft Inventory or Manufacturing, ownership of the items is transferred from the supplier to the business. The Transaction Costing and Accounting Line Creation processes in PeopleSoft Cost Management make consignment information available to PeopleSoft Payables for the creation of vouchers.

• The Landed Cost Extraction process in PeopleSoft Payables can pass cost adjustment information to PeopleSoft Cost Management for the stock putaways in inventory. These cost adjustments record differences between the purchase order cost and the voucher cost for direct material, subcontracted costs, and other landed costs including taxes and freight. The Transaction Costing process within the Cost Accounting Creation process updates inventory putaways, depletions, and variances for the adjustments.

• When stock is returned to the supplier using the RTV feature, PeopleSoft Cost Management records an RTV variance for any differences between an item's RTV price on the debit memo derived from PeopleSoft Payables and the cost that is used to relieve the item from PeopleSoft Inventory.

• The CM/AP Reconcile process in PeopleSoft Cost Management retrieves accounting entries in PeopleSoft Payables and finds the matching accounting entire in PeopleSoft Cost Management. This reconciliation process highlights the entries that cannot be matched.

Engineering

PeopleSoft Engineering retrieves item information from PeopleSoft Cost Management and Inventory for the engineering workbench environment to help you manage product introduction and change processes throughout the enterprise.

Product Configurator

When putting away an inventory item that is configured using PeopleSoft Product Configurator, the item is stored using a lot ID and a configuration code. The cost of a configured item is calculated by the Cost Rollup process in PeopleSoft Cost Management based on the item ID and configuration code.

Purchasing

Integration with PeopleSoft Purchasing includes:

• When items on a purchase orders are received from the supplier in PeopleSoft Purchasing, the items can be put away in a PeopleSoft Inventory business unit using the putaway processes. PeopleSoft Cost Management calculates the cost of the receipts into inventory based on the purchase order price and any additional charges defined a miscellaneous charge codes (for example, landed costs).

• To return items that have been stocked in inventory, the data on the Return to Vendor (RTV) pages is entered in PeopleSoft Purchasing and passed to PeopleSoft Inventory where the items are shipped or adjusted. PeopleSoft Cost Management records an adjusting entry for the cost of the returned items.

Manufacturing

Integration with PeopleSoft Manufacturing includes:

• As PeopleSoft Manufacturing moves raw materials and subassemblies from inventory storage locations to WIP locations or directly to production, PeopleSoft Cost Management creates accounting entries to debit or credit storage locations as the materials move down the production line. This enables the system to accurately track the costs included in raw material and WIP at any point in time.

• After the make item is produced, completions are recorded and the item is putaway in PeopleSoft Inventory. The Transaction Costing process in PeopleSoft Cost Management calculates the cost of the make item once the production ID or production schedule is closed for accounting. Later, if additional costs are recorded in PeopleSoft Manufacturing, the Transaction Costing process adjusts the original putaway and any depletions based on the putaway.

EPM (Enterprise Performance Management)

Use the Generate EPM Extract process to pass costing data from PeopleSoft Cost Management to PeopleSoft EPM by populating an on-hand staging table. A PeopleSoft EPM process extracts data from this table, transforms it, and places it into a PeopleSoft EPM data warehouse.

Project Costing

The costing data for project-related transactions is retrieved from PeopleSoft Cost Management records by the PeopleSoft Project Costing application in order to create resource transactions.

Maintenance Management

PeopleSoft Maintenance Management is a product within the asset life cycle management suite. This product manages the maintenance and repair of an asset.

• PeopleSoft Cost Management provides estimated costs for each inventory item on a parts list or work order in PeopleSoft Maintenance Management.

• When items are issued from PeopleSoft Inventory to a work order, PeopleSoft Maintenance Management can provide overriding ChartField combinations. These account distribution overrides are used with the existing accounting logic in PeopleSoft Cost Management to create the necessary accounting entries.

We cover integration considerations in the implementation topics.

Supplemental information about third-party application integration is located on the My Oracle Support web site.