Select Work Definition for Cost Rollup Across Multiple Manufacturing Plants

If your enterprise uses standard costs shared across multiple inventory organizations, you can now precisely select the manufacturing organization which should be used to calculate the standard cost of the product.

As production supervisors manage work definitions, they can specify the costing priority. This is an optional attribute that can be changed based on your requirements.

Now, you can set the costing priority to 0 for work definition when you don't want the Roll up Costs process to calculate the cost of the item in that organization. Further, you can set the costing priority of multiple work definitions of an item to 0 in a manufacturing plant. After you've set the costing priority of a work definition to 0, the Roll up Costs process will exclude that work definition from being rolled up.

As an example, if you've a product that's getting manufactured in 2 different manufacturing locations:

Manufacturing Work Definition in ZDQ Organization

Manufacturing Work Definition in ZDQ Organization

Manufacturing Work Definition in ZC9 Organization

Manufacturing Work Definition in ZC9 Organization

In this setup, manufacturing work definition in ZDQ organization is set up with costing priority = 0. Also, both ZDQ and ZC9 belong to the same cost organization and the cost is maintained at the cost organization level.

With this setup, when you run the Roll up Costs process, the cost of the product would be calculated using the work definition where costing priority is non-zero, that's using the work definition in ZC9 organization.

Product Cost with Work Definition from ZC9 organization

Product Cost with Work Definition from ZC9 organization

This feature increases the efficiency by allowing you to cost your items based on your enterprise's specific requirements.

Steps to Enable

You don't need to do anything to enable this feature.

Tips And Considerations

With the shared standard cost set up across organizations, the Create Cost Accounting Distributions process will report job close variances if there are discrepancies between your planned production (work definition) used in cost planning and execution in cost accounting.

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 this privilege can access this feature:

  • Perform Cost Rollup (CST_PERFORM_COST_ROLLUP)