Redwood: Accounting Overhead Rules

Overhead accounting rules establish how to absorb overhead costs into inventory value and expense. You can define the overhead accounting rules from the Accounting Overhead Rules page in the Cost Accounting work area.

You can now create, modify, delete overhead rates using Redwood pages. You can verify the existing overhead rates and also download the information into a spreadsheet for offline analysis and collaboration. You can only review the data for the cost organizations you've access to.

Search, Update and Delete Overhead Rules

On the Accounting Overhead Rules page, the rules are divided in two categories:

  • Active: Rules where the end date of the latest rate is in the future, meaning the rule is still valid and will continue to apply till the end date.
  • Expired: Rules where the end date of the latest rate has passed, meaning the rule is no longer valid and won't apply after its specified expiration date.

By default, you will see all the active rules sorted by last updated date in the descending order. In the new page, key information like latest revision end date and rate details are available on the main page and you don't need to drill down to fetch these details. You can also quickly filter the active and expired rates. You can modify and delete any exiting rule and also copy an existing rule to quickly create a new rule with minimum inputs. You can now select and edit multiple records one after another.

Accounting Overhead Rules Page

Accounting Overhead Rules Page

Create Overhead Rules

Click the Add (+) button to create a new overhead rule. The create and edit overhead rates page is divided into four sections:

  • Rule Information: Defines the essential details of the overhead rule.
  • Rule Conditions: Specifies the criteria and conditions for applying the rule.
  • Rule Actions: Outlines the actions triggered by the rule. Attributes like cost basis, based on, and absorption type are categorized in this section. 
  • Rate Details: Provides the specific rate information used in the overhead allocation.

You can now create multiple records seamlessly by using the Save and Create Another and the Save and Copy features introduced in Redwood. 

Create and Edit page for Accounting Overhead Rules

Create and Edit page for Accounting Overhead Rules

Some of the benefits of this feature include:

  • Better User Experience: Intuitive search, filtering, and navigation reduce manual effort and increase productivity.
  • Streamlined Overhead Management: Simplifies the creation and application of overhead rules, saving time and reducing manual effort in cost allocation.
  • Improved Accuracy: Ensures precise overhead cost distribution through predefined rules, minimizing errors and inconsistencies in financial records.
  • Multi Edit: Enables you to update multiple overhead rules, reducing the time spent and improving overall workflow efficiency.
  • Copy Overhead Rules: Enables faster creation of similar rules with consistent structure, reducing manual effort and ensuring accuracy in overhead allocations.

Steps to Enable

  1. In the Setup and Maintenance work area, search for and select the Manage Administrator Profile Values task.
  2. On the Manage Administrator Profile Values page, search for and select the ORA_CST_MANAGE_ACCOUNTING_OVERHEAD_RULES_REDWOOD_ENABLED profile option code.
  3. In the Profile Values section, set the Site level to Yes. The default value is No.
  • Yes = enables the feature
  • No = disables the feature
  1. Click Save and Close. Changes in the profile value will take effect the next time you sign in.

After you've set the profile value correctly, the task pane under Cost Accounting would show the task menu link as Accounting Overhead Rules. Using this link, you can access the Redwood page.

Tips And Considerations

  • Use the copy overhead rates functionality to quickly create similar rules with similar structure, reducing manual effort and ensuring accuracy in overhead allocations.
  • Use the multi-edit functionally to quickly update multiple records one after another. 
  • Review the active and expired rules using quick filters available on the home page.
  • Provide guidance such as tutorials, company policies, and best practices in the context of the page using guided journey tasks.

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 Cost Management Guide, available on the Oracle Help Center.

Access Requirements

Users who are assigned a configured job role that contains the following privilege can access this feature:

  • Manage Overhead Rule (CST_MANAGE_ACCOUNTING_OVERHEAD_RULES)
  • Manage Overhead Rule by Web Service (CST_MANAGE_ACCOUNTING_OVERHEAD_RULES_WEB_SERVICE)