Costing - Average Costing

Method
Demo Script (Internal)
Copyright Oracle Corporation, 2003. All rights reserved.
Costing - Average Costing Method
Page 1
Tale o! Contents
Costing - Average Costing Method [EDUM0761] 15-Oct-20041
Costing - Average Costing Method.............................................................................................................................1
Start the Cost Manager................................................................................................................................................2
Define an Item.............................................................................................................................................................4
Perform Miscellaneous Receits.................................................................................................................................!
Perform an Average Cost "date................................................................................................................................#
$ie% Item Cost &istor'.............................................................................................................................................1(
)lo%chart...................................................................................................................................................................11
Copyright Oracle Corporation, 2003. All rights reserved.
Costing - Average Costing Method
Page i
Costing - Average Costing Method
Document Control
Date O!ner A""
#e$ease
%ersion Change #e&erence
1!-*ct-2((4 David.Dosland 11.!.1( v1.( Slit the current Costing + Standard and
Average Costing scrit into t%o scrits.
Also convert the scrit to tutor format.
Objective
,he urose of this document is to demonstrate *racle Average Costing -' creating an item and
erforming a receit for the item.
Whats !e"#
$it%alls
Document otential itfalls using instructor te.t. ,r' to ut most of the itfalls %ithin the actual
te.t of the /ernels. )or e.amle0 a -ug1 gotcha1 or common user error1 er secific tas2. "se this
section saringl'.
Assumptions
3one
&elated 'usiness (lo"s (Optional)
Costing + Standard Costing Method
Costing + 4I)* Costing Method
Costing + )I)* Costing Method
&elated Documents
htt055glo-al.change.oraclecor.com5demodocs 6Reference Materials )older 6 )undamentals
$re Demo Steps (Optional)
Copyright Oracle Corporation, 2003. All rights reserved.
Costing - Average Costing Method
Page 1
"tart the Cost Manager
'tart the Cost Manager
Run the Cost Manager fre7uentl' during 'our demonstration. ,his %ill minimi8e %ait time
-et%een erforming transactions and vie%ing the cost la'ers. If the Cost Manager is active1
do not start it again. If the Cost Manage is active1 and 'ou %ish to run it more fre7uentl'1
cancel it from Concurrent Re7uests in S'stem Administration Resonsi-ilit'.
1. 4og into ortal.
(ie$d %a$)e
"ser 3ame M)9
Pass%ord %elcome
Resonsi-ilit' Manufacturing and Distri-ution Manager
2. Start the Cost Manager.
:3; Inventor' 6 Setu 6 ,ransactions 6 Interface Managers
,he *rgani8ations list of values form is disla'ed.
Select
(ie$d %a$)e
*rgani8ation M< + Dallas Manufacturing
:=; */
Clic2 on Cost Manager
:M; ,ools 6 4aunch Manager 6:=; Schedule
,he Schedule form is disla'ed.
Comlete the Schedule form as follo%s0
(ie$d %a$)e
Run the >o-? Periodicall'
@nd At @nd of 'our demo or re session. Do not
leave this blank as the cost manager will
run indefinitely. This could cause log file
space to become full, impacting
performance.
Copyright Oracle Corporation, 2003. All rights reserved.
Costing - Average Costing Method
Page 2
Re-run ever' 1 Minutes:s;. Setting this to run fre7uentl'
during 'our demo %ill eliminate chec2ing
to see if the cost manager has run during
the demo.
Al' the Interval? )rom the Comletion of the rior run
:=; */ 6 Su-mit 6 */
'egin Demo
Copyright Oracle Corporation, 2003. All rights reserved.
Costing - Average Costing Method
Page 3
#e!ine an $te%
De&ine an *te+
<. 4og into ortal.
(ie$d %a$)e
"ser 3ame M)9
Pass%ord %elcome
Resonsi-ilit' Manufacturing and Distri-ution Manager
4. Define an Item
:3; Inventor' 6 Items 6 Master Items
,he *rgani8ations list of values form is disla'ed.
Select an *rgani8ation
(ie$d %a$)e
*rgani8ation M< + Dallas Manufacturing
:=; */
,he Master Items for is disla'ed.
@nter the follo%ing information0
(ie$d %a$)e
Item @nter %hat 'ou %ant for an item num-er
Descrition @nter %hat 'ou %ant for a descrition
:M; ,ools 6 Co' )rom?
@nter the follo%ing information0
(ie$d %a$)e
,emlate Purchased Item
:=; Done 6 :I; Save 6 :,; )older :=; Assign ,o *rg?
Copyright Oracle Corporation, 2003. All rights reserved.
Costing - Average Costing Method
Page &
Per!or% Miscellaneo's (eceipts
,er&or+ Misce$$aneo)s #ecei"ts
,his ste is done to lace 7uantit' on hand and a -eginning cost for the item.
!. Add inventor' 7uantit' for the ne% item
:3; Inventor' 6 ,ransactions 6 Miscellaneous ,ransactions
@nter the follo%ing information0
(ie$d %a$)e
Date Defaults to toda'As date.
,'e Miscellaneous receit
:=; ,ransaction 4ines
@nter the follo%ing information0
(ie$d %a$)e
Item Item 'ou created a-ove.
Su-inventor' Choose an' su-inventor' from the list of
values.
Buantit' 1(
Account Select Miscellaneous from the Account
Alias 4ist of $alues.
"nit Cost @nter C1(.((
:I; Save
D. Revie% Cost for the Item.
:3; Cost 6 Item Costs 6 Item Costs
,he )ind Item5Cost ,'e )orm is disla'ed.
@nter the follo%ing information0
(ie$d %a$)e
Item Item 'ou created a-ove.
Copyright Oracle Corporation, 2003. All rights reserved.
Costing - Average Costing Method
Page )
:=; )ind
,he Item Cost Summar' form is disla'ed.
Revie% the Item Cost Summar' form.
3ote the cost is %hat 'ou entered in the Miscellaneous Receits form :C1(.((;.
:=; *en
,he Item Cost Details form is disla'ed. 3ote the follo%ing0
Buantit' on &and is %hat 'ou entered in the Miscellaneous
Receits form :1(;.
@.tended $alue is Buantit' times Cost :1(E1(F1((;.
G. Perform a second Miscellaneous Receit for the ne% item.
,his %ill sho% the average cost changes %hen su-se7uent transactions are entered.
:3; Inventor' 6 ,ransactions 6 Miscellaneous ,ransactions
@nter the follo%ing information0
(ie$d %a$)e
Date Defaults to toda'As date.
,'e Miscellaneous receit
:=; ,ransaction 4ines
@nter the follo%ing information0
(ie$d %a$)e
Item Item 'ou created a-ove.
Su-inventor' "se the same su-inventor' 'ou used I the
revious transaction.
Buantit' 1(
Account Select Miscellaneous from the Account
Alias 4ist of $alues.
"nit Cost @nter C!.((
:I; Save
#. Revie% Cost for the Item.
:3; Cost 6 Item Costs 6 Item Costs
Copyright Oracle Corporation, 2003. All rights reserved.
Costing - Average Costing Method
Page *
,he )ind Item5Cost ,'e )orm is disla'ed.
@nter the follo%ing information0
(ie$d %a$)e
Item Item 'ou created a-ove.
:=; )ind
,he Item Cost Summar' form is disla'ed.
Revie% the Item Cost Summar' form.
3ote the cost is no% half %a' -et%een the t%o entries 'ou made :CG.!(;.
:=; *en
,he Item Cost Details form is disla'ed. 3ote the follo%ing0
Buantit' on &and is no% 2(.
@.tended $alue is Buantit' times Cost :2(EG.!(F1!(.((;.
Copyright Oracle Corporation, 2003. All rights reserved.
Costing - Average Costing Method
Page +
Per!or% an Average Cost ,pdate
,er&or+ an Average Cost U"date
H. Perform an Average Cost "date
:3; Cost 6 Item Costs 6 Average Cost "date 6 "date Costs
,he "date Average Cost form is disla'ed.
@nter the follo%ing header information0
(ie$d %a$)e
,ransaction + Date ,oda'As Date
,ransaction - ,'e Select Average cost udate from the 4ist of
$alues.
Defaults + AdIustment Account Select Miscellaneous from the Account
Alias 4ist of $alues.
:,; ,ransaction Change
@nter the follo%ing information0
(ie$d %a$)e
Item Item 'ou created a-ove.
3e% Average Cost G.((
3ote the cost grou is disla'ed. =' using cost grous comanies are a-le to 2ee ver'
close to actual costs for secific items as the' %ill -e a-le to have an average cost for
the cost grou as oosed to an average cost for the organi8ation.
Jou can change the cost -' an a-solute value or -' a ercentage.
After 'ou enter the item 'ou %ill see the current average cost and the current total
value.
:,; Accounts
3ote these default -ased on the header information.
:,; $alue Change
,his sho%s the total change in inventor' value.
Copyright Oracle Corporation, 2003. All rights reserved.
Costing - Average Costing Method
Page -
:,; Comments
)ree form te.t for %hatever 'ou need.
:=; Cost @lements
Jou enter a ne% cost + clic2 on cost elements and see the details.
:I; Save
1(. Revie% Cost for the Item.
:3; Cost 6 Item Costs 6 Item Costs
,he )ind Item5Cost ,'e )orm is disla'ed.
@nter the follo%ing information0
(ie$d %a$)e
Item Item 'ou created a-ove.
:=; )ind
,he Item Cost Summar' form is disla'ed.
Revie% the Item Cost Summar' form.
3ote the cost is no% the amount 'ou entered in the cost udate form :CG.((;.
:=; *en
,he Item Cost Details form is disla'ed. 3ote the follo%ing0
Buantit' on &and is still 2(.
@.tended $alue is Buantit' times Cost :2(EG.((F14(;.
Copyright Oracle Corporation, 2003. All rights reserved.
Costing - Average Costing Method
Page .
/ie0 $te% Cost 1istory
%ie! *te+ Cost -istor.
,his %ill sho% the transactions that created the average cost.
11. $ie% Item Cost &istor'
:3; Costs 6 Item Costs 6 Item Cost &istor'
,he )ind Item Costs for Cost 9rous form is disla'ed.
@nter the follo%ing information0
(ie$d %a$)e
Item Item 'ou created a-ove.
:=; )ind 6 Cost &istor' 6 )ind
,he Item Cost &istor' form is disla'ed. ,he three transactions 'ou entered and their
costs are disla'ed.
End o& activit.
Demo Support
Please see htt055ads%e-.oracleads.com 6 :M; Suort 6 Procedures1 for current information
regarding demonstration suort.
Copyright Oracle Corporation, 2003. All rights reserved.
Costing - Average Costing Method
Page 10
2lo0chart
Start
Start Cost Mgr
3og into portal. 415
"tart Cost Mgr. 425
De%ine an Item
3og into portal. 435
#e!ine an $te% 4&5
$er%orm Misc
&eceipts
Add inventory 6'antity
!or ne0 ite% 4)5
(evie0 Cost !or $te%.
4*5
Per!or% a second Misc
(eceipt !or ne0 ite%.
4+5
(evie0 Cost !or $te%.
4-5
$er%orm an avg
Cost )pdate
Per!or% an avg Cost
,pdate 4.5
(evie0 Cost !or $te%.
4105
*ie" Item Cost
+istor,
/ie0 $te% Cost 1istory
4115
-nd
Copyright Oracle Corporation, 2003. All rights reserved.
Costing - Average Costing Method
Page 11