Quantity Rounding Exceptions in PeopleSoft Manufacturing

Rounding rules do not apply within these three areas of PeopleSoft Manufacturing:

• QPA (quantity per assembly).

  Used in BOM maintenance, planning BOM maintenance, component list maintenance, and production option maintenance. The QPA is a precision number and, therefore, should not be rounded. If rounding rules were applied, it would either understate or inflate the number of components required for production. For example, to make 2 assembly A0001s may require 1 component B0004. Thus, when defining the BOM, the QPA for B0004 would be 0.5. If we applied the rounding rules to the QPA, then it would round the QPA for B0004 to 1, thereby incorrectly inflating the QPA and the production costs.

• Cost Roll-Up Process.

  Applying the rounding rules to the Cost Roll-Up process causes production costs to be either understated or inflated. For example, A0007 is a component on assembly NB-5000. The QPA = 1 and the yield = 2/3. When you make one NB-5000, you need 1.5 of A0007. If A0007 costs 1.00 USD, then the cost of using A0007 is 1.50 USD. If we rounded the scheduled quantity during the Cost Roll-Up process, you would need 2 A0007s, which would incorrectly inflate the cost to 2.00 USD. Also, if A0007 is a subassembly, then we would need to explode A0007 into its component parts. The deeper the explosion, the greater the affect of the rounding. Thus, to achieve the most accurate cost, we do not round the component scheduled quantity.

• PeopleSoft Supply Planning - Dependent Demand.

  You have the option to round or not round dependent demand calculations. You may decide to not round the dependent demand calculation because rounding inflates the actual dependent demand. Rounding problems become more visible as the dependent demand explodes down more levels.