Include Supplier Supplied Items in Work Order Costs
You can include transactions related to components with supply type set to Supplier for work order calculations. During cost planning, these components are considered in the cost rollup and you can avoid unnecessary variances and achieve more accurate cost calculations for work orders.
By including supplier-related transactions in work order calculations you can ensure that cost of components with supply type set to Supplier are no longer expensed out. Instead, they accurately reflect in the inventory valuation. Also work order calculations become more precise, leading to better project planning and resource allocation.
The inclusion of supplier-related transactions creates a transparent and traceable audit trail for all work order calculations. You can easily validate the financial accuracy of work orders and supplier-related costs, ensuring compliance and accountability.
To include supplier-related transactions in work order calculations, set the profile
value to Yes for the profile option code
ORA_CST_INCL_SUPP_COMP_COSTS. The corresponding profile name is
"Cost Supplier Components in Work Order". This profile option must be set at the Site
level.
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All transactions created before the profile option is set will be marked as Excluded and won't be included in work order cost calculations.
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If the profile option is changed, any return transactions will use the profile value selected at the time of material issue.