Roll up Costs of Make Items or Use the Buy Item Cost for Manufactured Items with Work Definitions

Your enterprise can change sourcing decisions for materials based on different considerations that include cost, quality, or other competitive advantage. You can now procure an item, which you previously manufactured in-house, without the need to deactivate or delete the manufacturing work definition for the item.

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 definitions when you don't want the Roll up Costs process to calculate the cost of that item. 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. You can enter a standard cost estimate for this item and that cost would be used to roll up the cost of products using this item.

Work definition with costing priority = 0

Work definition with costing priority = 0

With costing priority = 0, you can enter the cost of the item and continue to use this cost without deleting or deactivating its work definition in the manufacturing organization.

Here are some benefits of this feature:

  • Increase efficiency by allowing you to cost your items correctly when your enterprise changes sourcing rules.
  • Empower your decision-making by allowing the flexibility to simulate your manufacturing costs with different sourcing strategies.

Steps to Enable

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

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)