Redwood: Create and Edit Overhead Cost Element Groups Using a New User Experience

Use overhead cost element groups and overhead accounting rules to calculate overhead absorption for inventory transactions. Cost element groups tell the cost processor which cost elements to sum up when the overhead rule is a percentage of cost. Cost element groups can be system defined or user defined, and are set at the cost organization level. Transaction Cost and Material are the two predefined cost element groups. You can also define your own cost element groups.

You can now create, update, and search for overhead cost element groups using Redwood pages.

View list of Overhead Cost Element Groups defined

View list of Overhead Cost Element Groups defined

Choose new Overhead Cost Element Group

Choose new Overhead Cost Element Group

Some of the benefits of this feature include:

  • Flexible Overhead Cost Allocation: Allocating costs using cost element groups helps in more accurate representation of your overheads in item costs.
  • Full Absorption of Costs: Overhead cost element groups help ensure compliance with regulations especially around full absorption of costs.

Steps to Enable

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

Tips And Considerations

  • You can provide guidance such as tutorials, company policies, and best practices in the context of Expense Pools using guided journey tasks. 
  • You can delete an overhead cost element group after it's used in accounting overhead rules. You can deselect the Active option if you no longer want to use an overhead cost element group in new overhead accounting rules.
  • Any changes to the cost element selected are applicable only for new transactions cost processed after the change.
  • In the Setup and Maintenance work area, the Redwood version of the Overhead Cost Element Groups page is enabled by default in this update, but the existing version of the Manage Overhead Cost Element Groups page is still available in the Manufacturing and Supply Chain Materials Management offering. You should move to the Redwood version of the page at your earliest convenience, because the existing version of the page will be removed from the application in a future update.

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 Cost Element Groups (CST_MANAGE_COST_ELEMENT_GROUPS)
  • Manage Cost Overhead Element Groups by Web Service (CST_MANAGE_COST_OH_ELEMENT_GROUPS_WEB_SERVICE)