Support Completion to Inventory on a Maintenance Work Orders with Multiple Assets of the Same Item
You can now track the work in process balances and complete assets to inventory for maintenance work orders with Complete to Inventory enabled. Transactions such as WIP Material Issue and Resource Charges will debit the Work in Process accounting line type instead of the Maintenance Expense.
The new Completion to Inventory column on the Maintenance Work Order Costs page helps you to differentiate such work orders. You can also assign multiple assets to such a work order and Multiple Assets is set to Yes for the work order.. When there are multiple assets, the asset details are shown in the Asset Details section and the product completion costs are apportioned equally among all the assets.
Maintenance Work Order Costs page has new column to identify work orders with completion to inventory
You can click View Costs to see the details of the Input Costs, Output Costs, and Variance Amounts. The work order cost details page shows the Asset as Multiple if multiple assets are linked to the work order and you can identify the assets by clicking on the link. If you are using the Standard Cost method to cost the Asset Item, any difference between the Input Costs and Output Costs will create a Rework Variance.
Rework variance created for standard costed items
If you are using Actual, Perpetual Average, or Periodic Average cost methods, the product completion cost will be based on the total costs incurred for the work order.
Total costs incurred used to cost the product completions
Let's use the following example to understand how maintenance work orders with Completion to Inventory enabled will be processed in Cost Accounting.
- Item: PJTR-1000
- Assets: EV8272901, EV8272912, EV8272951 (3 assets to be repaired and completed to inventory)
Example: Transactions created for a work order
* The WIP Material Issue transactions of the assets happen automatically after you release the work order.
| Item/Resource | Cost (USD) |
|---|---|
| PJTR-1000 | 1000 |
| LENS-001 | 250 |
| Inspector | 100 |
Standard Cost Method
If the Asset Item is standard costed, the transactions will be costed as shown below.
Accounting entries created for a standard costed asset item
*When the work order is closed, the WIP balance of $1300 will be cleared as Rework Variance
** WIP Material Issue and Product Completions will be based on the current standard cost of the item
Average Cost Method
Accounting entries created for average costed asset item
Total cost of inputs = $4300
Product completion cost = $1433.33 (4300/3)
If the work order close isn't available when the Asset Item product completion is costed, the completion cost is derived based on the Provisional Completion option chosen in the cost profile and the costs will be adjusted when the work order close becomes available.
This feature will help organizations that have a requirement to repair assets and move them back to Inventory while being able to track the value addition that happens during the repair.
Steps to Enable
Use the Opt In UI to enable this feature. For instructions, refer to the Optional Uptake of New Features section of this document.
Offering: Manufacturing and Supply Chain Materials Management
Tips And Considerations
The total costs incurred for the work order will be apportioned across all the assets linked to the work order.
Key Resources
- Oracle Fusion Cloud SCM: Implementing Manufacturing and Supply Chain Materials Management Guide, available on the Oracle Help Center.
- Oracle Fusion Cloud SCM: Using Supply Chain Cost Management Guide, available on the Oracle Help Center.
Access Requirements
Users who are assigned a configured job role that contains these privileges can access this feature:
- Create Cost Distributions (CST_CREATE_COST_DISTRIBUTIONS)
- Review Cost Distribution (CST_REVIEW_COST_DISTRIBUTIONS)
- Review Maintenance Work Order Costs (CST_REVIEW_MAINTENANCE_WORK_ORDER_COSTS)