Track and Account for Rework Costs in Standard and Nonstandard Discrete Work Orders

You can now track the costs incurred in rework activities and capture the cost of poor quality for scenarios where a rework is performed in a standard or nonstandard discrete manufacturing work order. Material and resource costs that are incurred to rework products in a discrete work order are now tracked separately and aren't included in the cost of products. These costs are shown in the newly added Rework Amount column on the Work Order Costs page.

Work Order Costs Page Showing the Rework Costs Incurred

A new indicator is now available on the Input Costs tab to indicate if a transaction is marked as a rework transaction.

Rework Indicator on Material Transactions

Rework costs aren't included in the cost calculation and are cleared as a rework variance for all cost methods when the work order is closed.

By tracking the rework costs separately for work orders, you can now get improved cost visibility to isolate rework costs and measure the cost of poor quality.

Steps to enable and configure

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

Tips and considerations

Rework costs are cleared as rework variances when you close the work order. This applies to all the costs methods.

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:

• Allows review of costs and balances by each individual work order (CST_REVIEW_WORK_ORDER_COSTS_PRIV)

This privilege was available prior to this update.