x.Define Category Accounts (Optional)565. Inter Module Dependencies586. Seeded technical objects597. Periodic Actions, Reconciliations etc.608. Accounting Entries61 1. IntroductionOracle Cost Management is a comprehensive solution that helps organizations define costs then performs cost accounting for supply chain transactions. These activities serve as a key component for complying with regulatory reporting and accounting requirements, for streamlining the use of working capital in organizations, and improved profitability for businesses.i.Important Key Features
It is a cost system for Inventory, Order Management, Purchasing and Work in Process transactions. Cost Management supports various transaction costing, comprehensive valuation and variance reporting and thorough integration with Oracle Financials.The overview of Oracle Cost Management with the other functional modules can berepresented as below:
It provides flexible Item Cost setup features including multiple cost elements and infinite sub-elements for each element. System defined cost elements are Material, Resource, Overhead, Material Overhead and Outside Processing. All these elements can have multiple Sub-elements help to analyze costs in greater details.This helps to accurately identify and maintain costs and associate them with items.
It enables extensive cost simulation capabilities that help to define costs. Italso supports flexible period based accounting that enables you to transact in more than one open period at the same time. You can simultaneously reconcile andanalyze one open period while conducting business in subsequent open period. Also you can transfer summary of detail account activity to Oracle General Ledger at any time and close the period at any time.
It provides flexible account setup such as accounts by Organization, Sub-Inventory, WIP accounting class such that total item cost can be distributed to right expense accounts and capture valuation in proper asset accounts.
It Supports following types of Costing Methods:i.Standard Costingii.Average Costingiii.LIFO Costingiv.FIFO Costingv.Periodic Average Costingvi.Activity based CostingAs per the scope of this document we will be considering details of only Standard and Average Costing Methods.
It can be broadly categorized based on functional criteria as:a.Product Costing
Rollup costs for bills and routings
Report and view assembly costs by level
Rollup costs based on Levels, Cost Type
Rollup costs using alternate bills and routings
Use Mass Edits to easily maintain costs and accounts
Copy Costs across cost types or organizations
Update costs at any time to revalue inventory and WIPb.Inventory Costing
Maintain perpetual inventory costs
Create inventory transaction accounting entries
Track Asset and Expense items and locations
Use Rule based accounting for Revenue and COGS