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SC Cost Rollup
SC Cost Rollup
The details of item sourcing rules for the Supply Chain Cost Rollup are entered using Oracle
MRP functionality. There can be a set of Sourcing Rules established or a Bill of Distribution
that is used to compute the Supply Chain costs. The navigation for these setups is included in
the Cost Management responsibility for ease of use.
Navigation Path: Cost > Supply Chain Costing
Markup costs related to any inter-org transfer of items are also included in the Supply Chain
Cost Rollup. By default, markup costs are retrieved from InterOrg Parameters. These
parameters must be setup prior to running the Rollup. If the markup cost hook is being used in
the rollup, the InterOrg Parameters are disregarded.
The Markup Cost Hook can be used to capture more costs for the rollup. This allows the user
to create customizations to capture markup costs for transfer from other organizations that are
in the Supply Chain.
The system will track cost details with source organization/vendor visibility. Costs will be
marked with the original source organization/vendor and the related allocation percentages that
contribute to the final assembly cost.
The Supply Chain indented report provides all cost information for the Rollup. All costs from
prior Supply Chain Rollups used in the latest rollup are considered to be previous level costs.
When running the rollup, a snapshot of the MRP sourcing rules is used. No loops can exist in
the BOM or BOD otherwise the rollup will not compute the costs.
The following is the list of steps required to perform a Supply Chain Cost Rollup:
1 - Setup rollup and buy cost types
Two types are necessary:
Rollup Cost Type: This parameter is as used in assembly cost rollup; costs are
read from and written to this cost type during the rollup.
In the Rollup Cost Type, setups include the user-defined costs and the Based On
Rollup flags for the items. The user-defined costs are applied over and above the
weighted average of all sources for a particular item in an organization.
The cost of an item in a particular organization will be recalculated only if its Based On
Rollup flag is set to Yes in the Rollup Cost Type. Otherwise, the item cost will be
taken as is from the Rollup Cost Type.
Buy Cost Type: This parameter holds the costs to be used that are setup as
purchase costs. All costs from this cost type will be taken as is, with no rollup done
within the Buy Cost Type.
Both Rollup Cost Type and Buy Cost Type should be Multi-Org and the Rollup Cost
Type must be Updateable. If the Buy Cost Hook is used, then the Buy Cost Type is
disregarded; the buy costs will be populated by the Buy Cost Hook instead.
2-Setup Buy Cost Hook (optional)
This provides the user customization capabilities in regard to vendor information. The
Buy Cost Type holds the default buy cost for purchased items specified in the MRP
sourcing rules.
The Buy Cost Hook can be customized to provide vendor level visibility for purchase
costs. Parameters that can be utilized include:
p_rollup_id
p_assignment_set_id
p_item_id
p_organization_id
p_vendor_id
p_site_id
p_ship_method
3-Setup Interorg Parameters
The Supply Chain Cost Rollup uses transfer costs in these parameters as the
markup charge for interorg transfers. These parameters must be set prior to running a
rollup. If a Markup Cost Hook is defined then these parameters are disregarded
4-Setup Markup Cost Hook (optional)
This allows the user to create customizations of the markup costs for transfer from
other organizations that are in the Supply Chain. If desired, the Markup Cost Hook can
be customized to provide custom markup costs for Transfer From other organizations
in the Supply Chain ONLY.
5-Setup Transportation Cost Hook (optional)
This allows the user to create customizations to capture transportation cost for Transfer
From other organizations that are in the Supply Chain. If hook is not used, the default
setting in the Inter-Org Shipping Networks will be used.
6-Setup Sourcing Rules
Setup the MRP Assignment Set with sourcing rules/BOD reflecting the Supply Chain
structure to rollup the cost on
Options
Yes/No
Yes/No
Required?
Y
Y
N
N
Y
Y
Y
Y
Y
Y
Y
Y
Y
N
N
Y
N
N
N
N
N
Once the process is launched, a snapshot of the MRP Sourcing Rules/Bill of Distribution is
performed. This information is taken from data entered in MRP. This snapshot has the existing
state of relevant information.
The snapshot data is then taken from MRP_SOURCES_V and placed in
CST_SC_SOURCING_RULES. If any sourcing rules exist in MRP_SOURCES_V, the code
then verifies that the sum of all sourcing percentages for a particular item/org will sum to 100.
The markup_percent column in the CST_SC_SOURCING_RULES table will be populated
from the interorg shipping network, MTL_INTERORG_PARAMETERS, if the markup hook
is not used
The Supply Chain Bill of Materials Explosion of each assembly then takes place. This logic is
the same as the Assembly Rollup code but is modified to track the item/org combination instead
of tracking the item only. Also the explosion will take the sourcing rules that were captured via
the snapshot
The Supply Cost Rollup Report is re-runnable for particular Supply Chain Rollup previously
performed, identified by rollup_id. This is the report that is printed when the Cost Rollup is run
with the Cost Rollup Print Report option. It first calls the rollup processor, then generates
the report using the data generated in CST_SC_BO_STRUCTURES. It resembles the BOM
Indented Cost Report for regular assembly rollup, with additional data displayed to designate
the supply chain cost sources.