Oracle Standard Rollup

Oracle Cost Management R11i (Release 11.5.
9)
STANDARD COST ROLLUP A TUTORIAL
Prepared by Oracle Applications Manufacturing BDE Author: Sanjeev Kale Creation Date: May 12, 2004 Last Updated: May 24, 2004
Copyright 2002 Oracle Corporation All Rights Reserved
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Oracle Cost Management R11i (Release 11.5.9)
INTRODUCTION................................................................................................................................................................................... 3 PRACTICE DATA ................................................................................................................................................................................. 4 Items .................................................................................................................................................................................................... 4 Department , Resources and Overheads.............................................................................................................................................. 5 Routings .............................................................................................................................................................................................. 5 Bills of Material .................................................................................................................................................................................. 6 DEFINE ITEMS...................................................................................................................................................................................... 7 COST TYPE.......................................................................................................................................................................................... 10 BASIS TYPE......................................................................................................................................................................................... 11 MATERIAL OVERHEAD ................................................................................................................................................................... 13 PURCHASED ITEMS COST............................................................................................................................................................... 14 DEFINE RESOURCES ........................................................................................................................................................................ 18 OVERHEADS....................................................................................................................................................................................... 20 DEFINE DEPARTMENTS .................................................................................................................................................................. 21 DEFINE ROUTINGS ........................................................................................................................................................................... 26 DEFINE BILL OF MATERIALS (BOM) ............................................................................................................................................ 27 ASSEMBLY COST .............................................................................................................................................................................. 29 COST UPDATE.................................................................................................................................................................................... 34 INVENTORY TRANSACTIONS ........................................................................................................................................................ 36 WIP TRANSACTIONS ........................................................................................................................................................................ 38
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INTRODUCTION
The purpose of the document is to walk you through the set up and understanding of Standard Cost Rollup. I have made certain assumptions while writing this. They are as follows You are using 11.5.9 version of Oracle Application. This data has been tested and works on Vision Database.
This tutorial will also help you understand the following beside the Standard Cost Rollup and Cost update. Use of XML in Item Imports BOM business objects API Routings API
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PRACTICE DATA
Items
MASTER ITEMS M1 - ORG ITEMS COST DETAILS
Item
Description
Template Type
Finished Goods Purchased Item Purchased Item Purchased Item Purchased Item Phantom Item Purchased Item Purchased Item Purchased Item
WIP Supply Type

Push
Build in WIP
Yes
Material Material Rate/Am Cost Overhea ount d Basis
xx-MB2XR
Xtreme Mountain Bike 6061 Aluminum Frame Kevlar Tires Front Suspension Fork Titanium HandleBars Components Kit
xx-FRAME xx-TIRES xx-FORK xx-BARS
Operation Pull Push Assembly Pull Push
No 250.00 No 30.00 No 110.00 No 40.00
Total Value Total Value Total Value Total Value
0.05 0.05 0.05 0.05
xx-COMP xx-DERAIL
Phantom Operation Pull Operation Pull Operation Pull
No No 60.00 No 80.00 No 45.00 Total Value Total Value Total Value 0.05 0.05 0.05
Front/Rear Derailleur xx-BRAKES Front/Rear Vbrakes xx-SADDLE Padded Gel Seat
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Department , Resources and Overheads
Dept Description Resource Resource Description
Bike Assembler Spec Check Computer Test Rider / Inspector
Type
Basis UOM Chrg Cst Std Type Rate

Item Item Item HR HR HR WIP Move WIP Move WIP Move Y Y Y Y Y Y
Res Units Unit Cost

10 40 15 8 8 8
xxMFG xxQLTY
Manufacturing Department Quality Department
xxAsmblr XxSpec xxTester
Person Machine Person
Overhead
xx-BENEFIT
Cost Element
Overhead
Description
Overhead for Personnel Overhead for Machine
Absorption Account
01-000-14200000-000 01-000-14200000-000
Default Basis
Resource Value Resource Value
xx-UTILITY
Overhead
Routings
Routing
xx-MB2XR
Description
Xtreme Mountain Bike
Op Seq
100 200
Dept
xxMFG xxQLTY
Res. Seq
100 100 200
Resource
xxAsmblr xxSpec xxTester
Usage
0.5 0.5 1
Standard Schedule Rate

Yes Yes Yes Yes Yes Yes
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Bills of Material
Item/Bom
xx-COMP xx-DERAIL xx-BRAKES xx-SADDLE
Description
Components Kit Front/Rear Derailleur Front/Rear V-brakes Padded Gel Seat
Item Seq
10 20 30
Op. Seq
1 1 1
Quantity
1 2 1
Supply Type
Operation Pull Operation Pull Operation Pull
Sub Inventory
Stores Stores Stores
Include in Roll up
Yes Yes Yes
xx-MB2XR xx-FRAME xx-TIRES xx-FORK xx-BARS xx-COMP
10 20 30 40 50
100 100 100 100 100
1 2 1 1 1
Operation Pull Push Assembly Pull Push Phantom
Stores Stores Stores Stores Stores
Yes Yes Yes Yes Yes
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DEFINE ITEMS
MASTER ITEMS M1 - ORG ITEMS COST DETAILS
Item
Description
Template Type
Finished Goods Purchased Item Purchased Item Purchased Item Purchased Item Phantom Item Purchased Item Purchased Item Purchased Item
WIP Supply Type

Push
Build in WIP
Yes
Material Material Rate/Am Cost Overhea ount d Basis
xx-MB2XR
xx-FRAME xx-TIRES xx-FORK xx-BARS
Operation Pull Push Assembly Pull Push
No 250.00 No 30.00 No 110.00 No 40.00
Total Value Total Value Total Value Total Value
0.05 0.05 0.05 0.05
xx-COMP xx-DERAIL
Phantom Operation Pull Operation Pull Operation Pull
No No 60.00 No 80.00 No 45.00 Total Value Total Value Total Value 0.05 0.05 0.05
Front/Rear Derailleur xx-BRAKES Front/Rear Vbrakes xx-SADDLE Padded Gel Seat
1. Open the mfgcst.xml file using the notepad or wordpad and Replace all XX- with your two lettered initials. (in my case it would be SK) 2. ftp the following files that are available along with this document to the respective directories.
mtiapi.sql to the user home directory.
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mfgcst.xml to /usr/tmp directory. (to a directory which is defined by utl_file_dir paramater)
3. Run the following script from the user home directory.

sqlplus appsusername/passowrd @mtiapi.sql You will get the following message Number of records inserted 18 PL/SQL procedure successfully completed. exit
Will get you out of the sqlplus session.

4. 5.
The Above process would have populated the MTL_SYSTEM_ITEMS_INTERFACE table. Login in the Application can Navigate to Inventory Items Import Import Items take the default parameters which are as follows All Organizations Validate Items Process Items Delete Processed Items Process Set (Null for all) Create or Update Items = Yes = Yes = Yes = Yes = =1 (Create New Items)
6. Verify Import Items request completes successfully. 7. Naviagate to Inventory Items Master Items click on the flash light and in the Items field in the Find Master Items window enter the following XX-A% XX-Z% and click on find and verify the the items are populated in the V1 and M1 organization with the appropriate item attributes as specified in the above table (Except Cost details which we will later).
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You can also verify the results with the following SQL
COL DESCRIPTION FORMAT A25 COL SEGMENT1 FORMAT A10 COL MEANING HEADING "WIP_SUPPLY_TPYE" FORMAT A15 SELECT Organization_id ORG, Segment1, MTI.DESCRIPTION, BUILD_IN_WIP_FLAG, MEANING FROM MTL_SYSTEM_ITEMS MTI, MFG_LOOKUPS ML WHERE SEGMENT1 BETWEEN 'SK-A%' AND 'SK-Z%' AND WIP_SUPPLY_TYPE = LOOKUP_CODE AND LOOKUP_TYPE = 'WIP_SUPPLY' ORDER BY 1,2; ORG ---------204 204 204 204 204 204 204 204 204 207 207 207 207 207 207 207 207 207 SEGMENT1 ---------SK-BARS SK-BRAKES SK-COMP SK-DERAIL SK-FORK SK-FRAME SK-MB2XR SK-SADDLE SK-TIRES SK-BARS SK-BRAKES SK-COMP SK-DERAIL SK-FORK SK-FRAME SK-MB2XR SK-SADDLE SK-TIRES DESCRIPTION ------------------------Titanium Handlebars Front-Rear V-Brakes Components Kit Front-Rear Derailleurs Front Suspension Fork 6061 Aluminum Frame Xtreme Mountain Bike Padded Gel Seat Kevlar Tires Titanium Handlebars Front-Rear V-Brakes Components Kit Front-Rear Derailleurs Front Suspension Fork 6061 Aluminum Frame Xtreme Mountain Bike Padded Gel Seat Kevlar Tires B N N N N N N Y N N N N N N N N Y N N WIP_SUPPLY_TPYE --------------Push Operation Pull Phantom Operation Pull Assembly Pull Operation Pull Push Operation Pull Push Push Operation Pull Phantom Operation Pull Assembly Pull Operation Pull Push Operation Pull Push
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COST TYPE
1. Define the cost type. This will be the cost type where we will collect the costs. (Navigation) Cost Setup Cost Types Name Description XX-CSTMTB Cost Type for Mountain Bike
Accept the form defaults except for the following: Previous Level Rollup Options Enable all of these options with x. Make sure that the default cost type is frozen. Save your work Action Save Close Window.
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BASIS TYPE
The following table details the basis types available for use with each subelement. Allocation Charge Methods SUBELEMENT Material Resource Overhead X X X X X X X X
BASIS TYPE Activity Item Lot Resource Units Resouce Value Total Value
Material
OSP
Overhead
X X
X X
X X X X
Activity Use the Activity basis type to assign an acitivity cost to an item. An activity is an action or task that you perform ina business that uses a resouce or incur cost. For material overhead subelements, the cost per item is calculated within each cost type as follows:
Cost per item = (Activity occurences / Number of items items ) * Activity rate
Item You use the item basis type to assign a fixed cost per item. For material and material ovehead subelements, you define a fixed amount per item For resource, Outside Processing (OSP), and Overhead subelemt, you can define a fixed per item moved through an operation. Lot You use the lot basis type to assign a lot charge per item or operation. For material and material overhead subelements, the cost per item is calculated within each cost type as follows
Cost per item = Rate or amount amount / Items costing lot size.
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For resource, Outside Processing, and Overhead subelement, the cost per item is calculated within each cost type as follows
Cost per item = Routing usage * Rate or amount * 1 / Items costing lot size
Resource Units You use Resource Units basis type to allocate overhead to an item based on the number of resource units. For material overhead and overhead subelements, the cost per item is calculated within each cost type as follows:
Cost per item = Overhead rate * No of resource resource units earned in routing operation
Resource Value You use Resource Value basis type to allocate overhead to an item based on a percentage of the resource value. For material overhead and overhead subelements, the cost per item is calculated within each cost type as follows:
Cost per item = Overhead rate * Resource values earned in the routing operation
Total Value You use Total Value basis type to allocate overhead to an item based on a percentage of the total value. For material overhead, the cost per item is calculated within each cost type as follows:
Cost per Item = Total cost Material overhead earned at this level * Material overhead rate
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MATERIAL OVERHEAD
1. Check to make sure that your sub-element for material is MATERIAL (Navigation) Cost Setup Sub-Elements Material You are checking here to make sure that your sub-element says MATERIAL. Close Window. 2. Now setup sub-element for material overhead. (Navigation) Cost Setup Sub-Elements Overheads Overhead Cost Element Description Absoption Account Default Basis Default Activity Inactive on Save your work Action Save Close Window. XX-MTBOH Material Overhead Material Overhead for Bikes 01-000-1420-0000-000 Total Value
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PURCHASED ITEMS COST
Now we will define item costs for the purchased Items and the assembled items Material Overhead. The buyers have told you the purchased standard costs are as follows XX-FRAME XX-TIRES XX-FORK XX-BARS XX-DERAIL XX-BRAKES XX-SADDLE = $250.00 = $30.00 = $110.00 = $40.00 = $60.00 = $80.00 = $45.00
1. Enter your Item Costs (Navigation) Cost Item Costs Item Costs Click on New Item Cost Type XX-FRAME XX-CSTMTB
Base on Rollup No (for Purchased items) Click on Costs button Note : Each part must be entered seperately
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Cost Element Sub-Element Activity Basis Rate Amount Cost Element Sub-Element Activity Basis Rate Amount Save your work Action Save Close Window. Add a New record Repeat the process for other Purchased Items. 2. Enter Manufacturing Item Cost Item Cost Type Base on Rollup XX-MB2XR XX-CSTMTB No (for Purchased items) Material MATERIAL Item 250.00 Material Overhead XX-MTBOH Total Value 0.05
Save your work Action Save Page 15

Close Window. Add a New record Repeat the process for other Purchased Items.
Verify the costs of your items XX-FRAME XX-TIRES XX-FORK XX-BARS XX-DERAIL XX-BRAKES XX-SADDLE = $262.50 = $31.50 = $115.50 = $42.00 = $63.00 = $84.00 = $47.25
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DEFINE RESOURCES
1. Create resources using the following table
Type

Res Units Unit Cost

10 40 15 8 8 8
xxMFG xxQLTY
(Navigation) Bills Of Material Routings Resources Resource Description Type UOM Charge Type Basis Costed Standard Absorption Account Variance Account Click on the Rates Button Cost Type Resource Unit Cost Save your work Page 18 XX-CSTMTB 10.00 XXAsmblr Bike Assembler Person HR WIP Move Item Yes Yes 01-520-5360-0000-000 01-520-5360-0000-000

Action Save Add a New record Repeat this for XXSpec and XXTester with the correct Type and Resource Unit cost specified in the above table.
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OVERHEADS
Enter the overheads that will be recovered by your resources. One of the overheads will be used to absorb any costs associated with payroll costs. The other overhead is used to recover the cost of utilities absorbed by the machines. 1. Setup a sub-element for resource overhead (Navigation) Cost Setup Sub-Elements Overheads Overhead Cost Element Description Absorption Account Default Basis Defalut Acitivity Inactive on Save your work Action Save Add a New record Overhead Cost Element Description Absorption Account Default Basis Defalut Acitivity Inactive on Save your work Action Save Close Form. Page 20 SK-UTILITY Overhead Overhead for Machine 01-000-1420-0000-000 Resource Unit SK-BENEFIT Overhead Overhead for Personnel 01-000-1420-0000-000 Resource Value

DEFINE DEPARTMENTS
1. Create departments using the following table
Type

Res Units Unit Cost

10 40 15 8 8 8
XxMFG XxQLTY
(Navigation) Bill of Material Routings Departments Department Description Class XXMfg Manufacturing Department
Click on Resources button Resource XXAsmblr Available 24 Hours Yes (Box checked) Share No Units 8 Save your work Action Save Close Form. Click on Rates button Cost Type
XX-CSTMTB Page 21

Overhead Activity Basis Rate XX-BENEFIT <default> (Resource value) 0.05
Click on the next line below the overhead Overhead Activity Basis Rate Save your work Action Save Close Form. New Record Department Description Class XXQlty Quality Department XX-UTILITY <default> (Resource Unit) 10
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Click on Resources button Resource XXSpec Available 24 Hours Yes (Box checked) Share No Units 8 Click on the next line Resource Available 24 Hours Share Units Save your work Action Save Close Form. Click on Rates button Cost Type Overhead Activity Basis Rate XXTester Yes (Box checked) No 8
XX-CSTMTB XX-BENEFIT <default> (Resource value) 0.05
Click on the next line below the overhead
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Overhead Activity Basis Rate Save your work Action Save Close Form. 2. Connect the Overheads to the Resources (Navigation) Bill of Material Routings Resources Click the flashlight on the toolbar. Select your XXAsmblr resource Click the Overheads button Cost Type Overhead Save your work Action Save Close Form. XX-CSTMTB XX-BENEFIT XX-UTILITY <default> (Resource Unit) 10
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Click the flashlight on the toolbar. Select your XXSpec resource Click the Overheads button Cost Type Overhead Save your work Action Save Close Form. Click the flashlight on the toolbar. Select your XXTester resource Click the Overheads button Cost Type Overhead Save your work Action Save Close Form. XX-CSTMTB XX-BENEFIT XX-CSTMTB XX-UTILITY
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DEFINE ROUTINGS
1. Create a routing for item xx-MB2XR using the following tables
Routing
xx-MB2XR
Description
Op Seq
100 200
Dept
xxMFG xxQLTY
Res. Seq
100 100 200
Resource
xxAsmblr xxSpec xxTester
Usage
0.5 0.5 1
Standard Schedule Rate

Yes Yes Yes Yes Yes Yes
2 Open the rtglist.txt file using the notepad or wordpad and Replace all XX with your two lettered initials. (in my case it would be SK) 3 ftp the following files that are available along with this document to the respective directories.
rtgapi.sql to the user home directory. rtglist.txt to /usr/tmp directory. (to a directory which is defined by utl_file_dir paramater)
4 Run the following script from the user home directory.

sqlplus appsusername/password @rtgapi.sql You Will get the following message v_dept_code SKMfg v_OrganizationCode M1 v_ItemName SK-MB2XR v_dept_code SKQlty v_OrganizationCode M1 v_ItemName SK-MB2XR Return Status = S (Return Status S = Successful Otherwise you will get error message) Message Count = 0 PL/SQL procedure successfully completed.
5 Verify Routings by going to (Navigation) Bill of Material Routings Routings. Page 26

DEFINE BILL OF MATERIALS (BOM)
1. Create the Bill of Material using the following table.
Item/Bom
xx-COMP xx-DERAIL xx-BRAKES xx-SADDLE
Description
Components Kit Front/Rear Derailleur Front/Rear V-brakes Padded Gel Seat
Item Seq
10 20 30
Op. Seq
1 1 1
Quantity
1 2 1
Supply Type
Operation Pull Operation Pull Operation Pull
Sub Inventory
Stores Stores Stores
Include in Roll up
Yes Yes Yes
xx-MB2XR xx-FRAME xx-TIRES xx-FORK xx-BARS xx-COMP
10 20 30 40 50
100 100 100 100 100
1 2 1 1 1
Operation Pull Push Assembly Pull Push Phantom
Stores Stores Stores Stores Stores
Yes Yes Yes Yes Yes
2 Open the bomlist.txt file using the notepad or wordpad and Replace all XX with your two lettered initials. (in my case it would be SK) 3 ftp the following files that are available along with this document to the respective directories.
bomapi.sql to the user home directory. bomlist.txt to /usr/tmp directory. (to a directory which is defined by utl_file_dir paramater)
4 Run the following script from the user home directory.

sqlplus appsusername/password @bomapi.sql You Will get the following message
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Return Status = S Message Count = 0 Return Status = S Message Count = 0 PL/SQL procedure successfully completed.
1. Verify BOM by going to (Navigation) Bill of Material Bills Bills or Indented Bills
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ASSEMBLY COST
We have completed the setup and now we want to rollup the costs we have just created for this Bill of Material. Please look at the following table, which will give you a brief understanding as to how the cost roll is calculated. We will verify this with the result we get from the Assembly Cost Rollup program.
COST ELEMENTS SUB ELEMENTS ITEM / RESOURCE BASIS CALCULATION TOTAL
Material
Item Item Item Item Item Item Item Material OH MTBOH Total Value Total Value Total Value Total Value Total Value Total Value Total Value Resource Asmblr Item Spec Item Tester Item OverHead Benefit Asmblr Resource Value Utility Spec Resource Unit Benefit Spec Resource Value TOTAL UNIT COST (Do the cost rollup and compare to this)
Material
xxFRAME xxTIRE xxFORK xxBARS xxDERAIL xxBRAKE xxSADDLE xxFRAME xxTIRE xxFORK xxBARS xxDERAIL xxBRAKE xxSADDLE
250 x 1 30 x 2 110 x 1 40 x 1 60 x 2 80 x 2 45 x 1 5% of 250 5% of 60 5% of 110 5% of 40 5% of 120 5% of 160 5% of 45 .5 hr x $10 .5 hr x $40 1 hr x $15 5% of $5 $10 x .5 hr 5% of $ 15
250.00 60.00 110.00 40.00 120.00 160.00 45.00 12.50 3.00 5.50 2.00 6.00 8.00 2.25 5.00 20.00 15.00 0.25 5.00 0.75 870.25
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1. (Navigation) Cost Item Costs Assembly Cost Rollup Request Name Cost Type Rollup Option Range Report Type Material Detail Material Overhead Detail Routing Detail Report Number of Level Effectivity Date Include Unimplemented ECOs Alternate Bill Alternate Routing Engineering Bills Specific Item Cost Rollup Print Report XX-CSTMTB Full Cost Rollup Specific Item Detail Indented Yes Yes Yes 10 Todays Date No
No XX-MB2XR
Let the report complete and the report will look as follows
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Seattle Manufacturing 13:00 Cost Type: Revision Date: Alternate BOM: Alternate Routing: Assembly: SK-MB2XR SK-CSTMTB 2004/05/13 23:5 Bills of Material Indented Cost Report (USD) Report Date: Page: 13-MAY-2004 1
Category:
NEW.MISC
UOM:
Ea
Include in Rollup | Based on Rollup | | Asset/Costed Op Item/ Description/ Last Make | | | Yield/ Level Seq Cost Element Sub-Elem Department Rev Buy | | | Phtm Basis ----------- ---- --------------- -------------- ---------- ---- ---- ---- ---- ---- ---- ---------0 SK-MB2XR Xtreme Mountain Bike A Make Yes Yes No 100 Resource SKAsmblr SKMfg Yes Item+ 100 Overhead SK-BENEFIT SKMfg Res value 200 Resource SKSpec SKQlty Yes Item+ 200 Overhead SK-UTILITY SKQlty Res units 200 Resource SKTester SKQlty Yes Item+ 200 Overhead SK-BENEFIT SKQlty Res value .1 100 SK-FRAME 6061 Aluminum Frame Material MATERIAL Material Over SK-MTBOH 100 SK-TIRES Kevlar Tires Material MATERIAL Material Over SK-MTBOH 100 SK-FORK Front Suspension Fork Material MATERIAL Material Over SK-MTBOH 100 SK-BARS Titanium Handlebars Material MATERIAL Material Over SK-MTBOH 100 SK-COMP Components Kit A Buy Yes No Yes No
Quantity/ Shrink/ Extended Qty/ Item Unit Cost/ UOM Rate or Amount Basis Factor Rate or Amount Res Unit Cost Extended Cost --- -------------- ------------ -------------- ---------------- --------------Ea 1.00 0.00 1.00 870.25000 HR 0.50 1.00 0.50 10.00000 5.00000 USD 0.05 5.00 0.05 0.25000 HR 0.50 1.00 0.50 40.00000 20.00000 USD 10.00 0.50 10.00 5.00000 HR 1.00 1.00 1.00 15.00000 15.00000 USD 0.05 15.00 0.05 0.75000 1.00 250.00 0.05 2.00 30.00 0.05 1.00 110.00 0.05 1.00 40.00 0.05 1.00 2.00 60.00 0.05 2.00 80.00 0.05 1.00 45.00 0.05 0.00 1.00 250.00 0.00 1.00 60.00 0.00 1.00 110.00 0.00 1.00 40.00 0.00 0.00 1.00 120.00 0.00 1.00 160.00 0.00 1.00 45.00 1.00 250.00 0.05 2.00 60.00 0.05 1.00 110.00 0.05 1.00 40.00 0.05 1.00 2.00 120.00 0.05 2.00 160.00 0.05 1.00 45.00 0.05 262.50000 250.00000 12.50000 31.50000 60.00000 3.00000 115.50000 110.00000 5.50000 42.00000 40.00000 2.00000 341.25000 63.00000 120.00000 6.00000 84.00000 160.00000 8.00000 47.25000 45.00000 2.25000 --------------870.25000 ===============
1.00 Ea Item+ USD Ttl value USD 1.00 Ea Item+ USD Ttl value USD 1.00 Ea Item+ USD Ttl value USD 1.00 Ea Item+ USD Ttl value USD 1.00 Ea 1.00 Ea Item+ USD Ttl value USD 1.00 Ea Item+ USD Ttl value USD 1.00 Ea Item+ USD Ttl value USD
.1
Buy
Yes
No
Yes
No
.1
Buy
Yes
No
Yes
No
.1
Buy
Yes
No
Yes
No
.1 ..2
A A
Make Yes Buy Yes
Yes No
Yes Yes
Yes No
1 SK-DERAIL Front-Rear Derailleurs Material MATERIAL Material Over SK-MTBOH 1 SK-BRAKES Front-Rear V-Brakes Material MATERIAL Material Over SK-MTBOH 1 SK-SADDLE Padded Gel Seat Material MATERIAL Material Over SK-MTBOH
..2
Buy
Yes
No
Yes
No
..2
Buy
Yes
No
Yes
No
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Cost Element -------------------Material Material Overhead Resource Outside Processing Overhead Total Standard Cost ---------------0.00000 0.00000 0.00000 0.00000 0.00000 ---------------0.00000 ================ Report Value ---------------785.00000 39.25000 40.00000 0.00000 6.00000 ---------------870.25000 ================ Difference ----------------785.00000 -39.25000 -40.00000 0.00000 -6.00000 ----------------870.25000 ================ Percent ---------0.0 0.0 0.0 0.0 0.0 ----------
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2. To view the cost (Navigation) Cost Item Costs Item XX-MB2XR Cost Type XX-CSTMTB Click on the Find button
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COST UPDATE
1. First lets examine the Frozen costs. (Navigation) Cost Item Costs Item XX-MB2XR Cost Type Frozen Click on the Find button Click on the Costs button In this case there should not be any costs. This is what we will be updating with the cost update. 2. (Navigation) Cost Item Costs Standard Cost Update Update Costs Request Name Cost Type Adjustment Account Description Item Range Sort Option Update Option Specific Item Save Details 3. Verify the Frozen Costs Update Standard Costs XX-CSTMTB Std Cost Var (Account alias) Update MB2XR Costs All Items <accept default> Overhead, Resource, Activity, and Item Costs tab through (Click Ok) Yes
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(Navigation) Cost Item Costs Item XX-MB2XR Cost Type Frozen Click on the Find button Click on the Costs button In this case there should not be any costs. This is what we are updating with the cost update.
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INVENTORY TRANSACTIONS
1. Perform the following miscellaneous transactions (Navigation) Inventory Transactions Miscellaneous Transactions Date Type Source Account Todays Date Miscellaneous Receipts 01-000-1110-0000-000
Click the Transaction Lines button Item XX-FRAME XX-TIRES XX-FORK XX-BARS XX-DERAIL XX-BRAKES XX-SADDLE Save your work Action Save 2. Now look up some of the Items in the inventory to make sure that the transaction was processed. (Navigation) Inventory On Hand Availability On Hand Quantity Item XX-TIRES Click the Find button and view the On-hand balances for the tires. Sub Inventory Stores Stores Stores Stores Stores Stores Stores Quantity 1000 1000 1000 1000 500 1000 100
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3. View the Material Transaction generated. (Navigation) Inventory Material Transactions Item XX-TIRES Click the Find button and review the Information, Click on the Distribution button. Review the Distribution Information.
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WIP TRANSACTIONS
1. Create Job (Navigation) WIP Discrete Discrete Jobs Job Type Assembly Description UOM Class Status Quantity MRP Qty Start Date Completion Date XX-JOB1 Standard XX-MB2XR <default> <default> Discrete Released 100 <default> 4 weeks from today @ 23:55
Click in the Routing alternative region Completion Sub inventory FGI Save your work Action Save 2. Review the discrete job for your assembly (Navigation) WIP Discrete Discrete Jobs Job XX-JOB1
Click on the Find button. Click on the Open button.
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Review the Job requirements, Operations, resources.
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Page 40
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3. Issue the Push Material to the Job (Navigation) WIP Material Transactions WIP Material Transactions Job XX-JOB1
Click on the Transact button. The push components should appear. Verify the quantities and click on the Done button. The Components should now be issued. Verify that the issues took place by going to View Discrete Jobs forms. In the View Discrete Jobs form, query up the XX-JOB1 and then click on Components button, select the Quantities alternative region. 4. Complete the following Move transaction, Move half of the assemblies from the Queue step of the 1st Operation to the Run step of 1st operation. This also lets the people know the job has started. (Navigation) WIP Move Transactions Move Transactions Job Transaction Type Seq From Step Seq To Step Quantity XX-JOB1 Move 100 Queue 200 Run 100
Click on the Save button. Verify the Move transactions took place by going to View Discrete Jobs forms. In the View Discrete Jobs form, query up the XX-JOB1 and then click on Operations button, select the Quantities alternative region. 5. Complete the assemblies using the easy completion. (Navigation) WIP Move Transactions Move Transactions Job XX-JOB1 Page 43

Transaction Type Seq From Step Seq To Step Quantity Complete 100 Run 200 To Move 100
Click on Save button. Verify the completions in Inventory by going to (Navigation) Inventory On-Hand, Availability On-Hand Quantity. Query the item XX-MB2XR. 6. Now that 100 quantity of XX-MB2XRs are complete, close the job so any excess charges can be booked to the variance. Close the Job. (Navigation) WIP Discrete Close Discrete Jobs Close Discrete Jobs (Form) Job XX-JOB1
Click on the Find button. Tools Close 1 click OK. A Close Discrete Jobs request will be submitted. Once the Request is complete, look at the Discrete Job Value Report (summary). It looks likes as follows.
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Seattle Manufacturing Discrete Job Value Report Summary (USD) Sort by: Job Report Date: Page: 14-MAY-2004 00:06 1 of 1
Job:
SK-JOB1
Job Desc: SK-MB2XR Discrete Standard Discrete Discrete Job Class
Job Type: Revision: Start Quantity: Quantity Completed: Quantity Scrapped: Project Name:
Standard
Status:
Closed Ea 28-MAY-04 13-MAY-04 10-JUN-04 14-MAY-04
Assembly: Accounting Class: Class Type: Class Description: Project:
A 09-JUN-04 100.00 100.00 0.00
UOM: Start Date: Date Released: Scheduled Completion Date: Date Closed:
Period-To-Date Summary ---------------------Element/Variance --------------------Material Material Overhead Resource Outside Processing Overhead Material Variance Resource Variance Outside Process Var Overhead Variance Total Costs: Accounts Costs Incurred Costs Relieved ------------------------- ---------------- ---------------01-000-1410-0000-000 78,500.00 78,500.00 01-000-1420-0000-000 3,925.00 3,925.00 01-000-1440-0000-000 4,000.00 4,000.00 01-000-1450-0000-000 0.00 0.00 01-000-1430-0000-000 600.00 600.00 01-520-5310-0000-000 01-520-5312-0000-000 01-520-5370-0000-000 01-520-5330-0000-000 ---------------- ---------------87,025.00 87,025.00 ================ ================ Cumulative-To-Date Summary -------------------------Element/Variance --------------------Material Material Overhead Resource Outside Processing Overhead Material Variance Resource Variance Outside Process Var Overhead Variance Total Costs: Accounts Costs Incurred Costs Relieved ------------------------- ---------------- ---------------01-000-1410-0000-000 78,500.00 78,500.00 01-000-1420-0000-000 3,925.00 3,925.00 01-000-1440-0000-000 4,000.00 4,000.00 01-000-1450-0000-000 0.00 0.00 01-000-1430-0000-000 600.00 600.00 01-520-5310-0000-000 01-520-5312-0000-000 01-520-5370-0000-000 01-520-5330-0000-000 ---------------- ---------------87,025.00 87,025.00 ================ ================ Elemental Single Level Variances Variances Relieved Relieved Period Activity ---------------- ---------------- ---------------0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 ---------------- ---------------- ---------------0.00 0.00 0.00 ================ ================ ================ Elemental Single Level Variances Variances Relieved Relieved Period Activity ---------------- ---------------- ---------------0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 ---------------- ---------------- ---------------0.00 0.00 0.00 ================ ================ ================
Page 45

Review the data in the following forms as well. View Discrete Jobs forms (look at the resources and material requirements). (Navigation) WIP Discrete WIP Value Summary (look at the value and account distribution).
Costs Incurred: Costs associated with material issues/returns, resource and overhead transactions of a job or repetitive schedule. Costs Relieved: Standard costs relieved by cost element when assemblies from a job or repetitive schedule are completed or scrapped. Variances Relieved: Variances relieved by cost elements when a job or accounting period is closed, or when a repetitive schedule is cancelled. Net Actitvity: Cost element net activity, the difference between the costs incurred and the costs and variances relieved. Page 46
This Level/Previous Level Elemental Costs: Elemental costs for manufactured items are kept at two levels: this level and previous level. This level costs are those costs incurred in producing the part at the current bill of material level. This level costs might include labor and overhead supplied to bring an assembly to a certain state of completion. Previous level costs are those incurred at lower levels. Previous level costs might include material and labor, and outside processing costs incurred to bring an item to its current state of completion. Totals costs for an item are calculated by summing the this level and previous level costs as shown in the following table. Page 47

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Oracle Cost Management R11i (Release 11.5.

STANDARD COST ROLLUP A TUTORIAL

Oracle Cost Management R11i (Release 11.5.9)

Oracle Cost Management R11i (Release 11.5.9)

Oracle Cost Management R11i (Release 11.5.9)

WIP Supply Type

Material Material Rate/Am Cost Overhea ount d Basis

xx-FRAME xx-TIRES xx-FORK xx-BARS

Operation Pull Push Assembly Pull Push

No 250.00 No 30.00 No 110.00 No 40.00

Total Value Total Value Total Value Total Value

0.05 0.05 0.05 0.05

Phantom Operation Pull Operation Pull Operation Pull

Front/Rear Derailleur xx-BRAKES Front/Rear Vbrakes xx-SADDLE Padded Gel Seat

Oracle Cost Management R11i (Release 11.5.9)

Basis UOM Chrg Cst Std Type Rate

Res Units Unit Cost

Manufacturing Department Quality Department

xxAsmblr XxSpec xxTester

Person Machine Person

Standard Schedule Rate

Oracle Cost Management R11i (Release 11.5.9)

xx-MB2XR xx-FRAME xx-TIRES xx-FORK xx-BARS xx-COMP

100 100 100 100 100

Operation Pull Push Assembly Pull Push Phantom

Stores Stores Stores Stores Stores

Yes Yes Yes Yes Yes

Oracle Cost Management R11i (Release 11.5.9)

WIP Supply Type

Material Material Rate/Am Cost Overhea ount d Basis

xx-FRAME xx-TIRES xx-FORK xx-BARS

Operation Pull Push Assembly Pull Push

No 250.00 No 30.00 No 110.00 No 40.00

Total Value Total Value Total Value Total Value

0.05 0.05 0.05 0.05

Phantom Operation Pull Operation Pull Operation Pull

Front/Rear Derailleur xx-BRAKES Front/Rear Vbrakes xx-SADDLE Padded Gel Seat

Oracle Cost Management R11i (Release 11.5.9)

3. Run the following script from the user home directory.

Will get you out of the sqlplus session.

Oracle Cost Management R11i (Release 11.5.9)

Oracle Cost Management R11i (Release 11.5.9)

Oracle Cost Management R11i (Release 11.5.9)

Oracle Cost Management R11i (Release 11.5.9)

Oracle Cost Management R11i (Release 11.5.9)

Oracle Cost Management R11i (Release 11.5.9)

Oracle Cost Management R11i (Release 11.5.9)

Save your work Action Save Page 15

Oracle Cost Management R11i (Release 11.5.9)

Oracle Cost Management R11i (Release 11.5.9)

Oracle Cost Management R11i (Release 11.5.9)

Basis UOM Chrg Cst Std Type Rate

Res Units Unit Cost

Manufacturing Department Quality Department

xxAsmblr XxSpec xxTester

Person Machine Person

Oracle Cost Management R11i (Release 11.5.9)

Oracle Cost Management R11i (Release 11.5.9)

Oracle Cost Management R11i (Release 11.5.9)

Basis UOM Chrg Cst Std Type Rate

Res Units Unit Cost

Manufacturing Department Quality Department

xxAsmblr XxSpec xxTester