MFG Process Setup orm Oracle Process Manufacturing by Mis Consist of > 1+ Predefined Setup: * Inventory Organizations* * Organization Parameters* * Sub-inventories* * Locators* + Unit of Measure Classes* * Units of Measure® + Unit of Measure Conversions + Master Items + Organization items 2. Product Developments 3+ Process Execution 4 Process Costing 5- Process Planning1- Predefined Setup: 1+ Create User with Responsibilities: ——— Fl to Open Search Mode Enter name > Mina Followed by % then Ctrl FL System administrator Purchasing Super User Inventory, Vision Operations (USA) Process Engineer Formulator Product Development Security Mi Production Supervisor Produetion OperatorOPM Financials. ad Create OU Inventory > Setup Organizations-> Organization Select at Classifications > Operating Unit ‘Make Sure to Enable it -> then Clickon Save > Others ——| io fe Bats » im cette oe en = om Select Operating Unit Information‘Add Primary Ledger and Legal entity and OU Code ‘Then Save 3 Create Master item Organization Select at Ciassifcation > inventory Organization jaiMake Sure to Add Related OU > MLOU Ss, ee er ie fmm sto * nny Set org code and add Same Code at item master Org Code Add CalendarAt Cost information tab Note: Note this tab applies only to diserete organizations. ‘The costing organization that control the costs in your cument organization and the costing method ate disphyed. You camot mike changes to these fickls, Some Default account at Org Level Can override it on Below Levels as sub inventory ita [Aa emt accom at waco mer owt Fox erage coving ts acum! bd yn eee sd wane vam. Once you pesfomn amc. you cana mgr th accom ESS a ooo pe nS een “rate pring et Rem a We a I Teme noe 9a dna Una noe‘Other Account Tab Se Sa ee eed = rr me rt wpe pe ‘Nee fo tetany Pec er me nee AP Ara ler Pipe Sey tint Gd el een Te eo eee ta a ee ayy eM Ar Can, iy A Ac, nee PN ap Sl ana ad pd Tac Siu aiade aretemmes4+ Greate 2 Inventory Organizations (ane Ong as inv ong -ML1- / another one as OPM Organization -ML2) —$$$>= — From [29JAN-2021 bb To a ENP ER] . Location [ZAYAT_GI2A_11 Iitemal or External. Internal Location Address GUZA EG. Internal Address Deetien Oe Name Enabied [Business Group ¥ x inventory Organization: ¥ = { Others ) ‘At Organization Classification edd Business Group (to use position hierarchy at Procurement)Inventory Organization ene HauroRG? From Suu ecaten 2AVAT.G0A.N neaoon gen GOA EG Inventory information tee Lact Ain ese + sm tage ttc ‘As Qh cant ts Ont ae att Peta Fe Menem Dame Aleem tel 3 wane ROS Cait tenet fae ett (een Ene epee | omenRecelving information ree cm eeenineen —— memes soem Bscecren 5 antes cen aa ST eeFor Process Org Opendrganization Parameter Make Sure to Select Organization asAt Cost’ Automatically Cost Method Change to standard Why Standard formanufacturing industries >someindustries need tokeepitem costno many changesoccur on it Regarding ta Average ->Changed every time Transaction Occur For standard any variance stored at variance account, and analyzed and in-case any Change needed to Costcan make Cost update ATP, Pick teetering Inventory Parameters ‘Costing tnformation Revision, Let, Serial And LPN ATP Deol Rute | i Picking Defaults Rule Process FEFO (Overpictang For Transfor Orders Enabled “Enable Risles Override for Lot-L evel Resenvations Verity Pick (Sales Orders Category Set Name / Meve Onders: ‘Weight Tolerance % + | 5Receivinginformation Create Sub inventories at each ORG Inventory-> setup>-organizations->sub inventoriesmatte Locatoe Alas Enlace Aloe Uriquees To override AccountsatSub inventory Level5 Set Organizationaccess for Assigned Responsibility Inventory Setup-> organization organizations access2- Product Development: First Set Organization Access: Gees Enter Product Development Security Manager Role taSetSome Defaults as Formal, Operation, Routingreceipt Defaults (Rim ames Capen emit Oper Pama Tepe, tee a2 Createitemstouse at Formula Openinventory rites item Master Create Finish good itemDeviation Factor - Inventory Tab (attribute init) ‘Min [inven Sits of Watenal Ubserhims Type | tem states [Acie [ oe Finventony tem Stovkable 7 Transactable = Reston Conta) Resenable (3) Check Material Shortage Lot Expration (She Lit) © eyeie Count Enabed & Convo} [Shellie days =) agstne Measurement Eror ‘She Lile Days Postno Measurement Eror Retest imeeal seme cael oe cee Eres cette? ‘Sarat Tagging Enabled : Lot Stating Prefix eee | Go omen Grade Conroted Stating Number [PS eran Mauity Daye | Hold Days Locator Cant [fle Conch =) Rast Sutinverories Cost Tab Material Classifcation Type | Materia Classifeation Contiel [No Contct =| TRestict Locators th)Descition i Coating Ennai, FF Inventory Asset Value Include in Rollup (ost ot Goods Sold Account (B1400S11000 ‘Standard Lot Size COGS Account'to be overrideon the itemlevel Purchasing Tab Main Invert Bille of Material Asset Management| Costing [BUERGAIEG| Recsiong Physical Annb Purchased 7 Purchasabie Use Approved Supplier 1 Allow Description Update Outsourced Assembly Outside Processing Item | ce Matching . <4 — a faker fe Receipt Required [No] ‘Unit Type ge Te Carescaton cate | Pees er Unit oftssue | Imoice Ciose Tolerance % Hazerd Class Market Price Rounding Factor [ Expense Account (01-000-7430-00 ‘Asset Category | Expense Account tobe override, item taxable and Require RFQornet, invoicing Method toMatchWorkin Process Tab Organon [MST MST Display Attributes itemProcess manufacturing Tab Process Costing Enabled ‘Supply Subinventory: Recipe Enabled Supply Locator | ‘CO Mazandous Material Yield Subinventory: ‘CAS Number Yield Locator Make sure to Select Process Execution Enable Assignitemtoinventory Org eS a es crpniieon asnerrnenCreate RAW item and Assign to Orgs 4-Formulator Create Formulafor Pracessitem Open Res-> Formulator Can Setup formula Class, status for Formula © Formula composed of Ingredient, Product, and possibly Byproduct +) Recipe linking the Routing and Formula together with Processing Instructions, i (hase rasaions oo wagedwn] [_Procuct] [Bypass } FoimulaHeaderand Details: Productsand co:products and ingredients iis ODE FECipeSeH DIE “ce woven Contam ce RRS] Sree We — ==) ‘ey Suen See eetn Vind Sateen ‘Ye tactrEe Peate FOFMINLE > same Aseil| of material fordisereve items Add finish Good (Product andits ingredients) Make sureif u are using by Product to be allowed From Manufacturing Organization Parameter Ferma FSGii sme lew Vermont) Gabi FSERTEST Pees a es ak {lass Desextion | Eine Beets f GePiedein | | berets 2) Scalingallowed->if item increase or Decrease alsoaffect Quantities of ingredients If we remove Check Box of Scatingallow 7 Peas) Cost Allocation itemaffect by batch Cost‘Can both standard and packaging formulas be created? ‘Yes. Use the Formula Details window to createboth standard and packaging formulas. ‘To set up-a packaging formula, cntcr (Reppvchai ery itselfas product, Then enter the bulk item, packaging container, and package label as Ingredients. ‘Add ingredients Formula ingredients can be sealed using rules that specify whether ornatan Ingredient contributes to yield,How to Consume Material (Consumption Types) ‘LAutomatic-> by Batch Completion Consume Material 2-Manual by Entering Manual transaction "WIP ISSUE” 3increament > when ingredient consumption isealculated by incremental backflushing, 4-Automantiebystep-> AfterCompletestep. Contribute to Yield Ingredients are contribute product outputor not Ta Scale by amount or PercentScale Type: > Proportional > eat) 3! ish 5 San! bs je saci Fixed > GiB JY gh > Kae stay AS V0 ples yoy NEO CS Ge i) UAL YS OF Products By-pducts [Ingresionts | ‘Quantity |UOM |/Substitution Etfective Dato Gracle Process Manufacturing (OPM) does not calculatethe cost f production of byproducts. Any items produced by formulas that you want to caleulatecosts for must be entered as products Using Formula Phantoms (Not Stored , Not Sold , Trackable) Phantoms ar lermediateformulas that arenot manufactured as products, Phantoms are sometimes referred to as transient subassemblies “Two fundamental tasksare associated to sing phantoms are: '* Identify one.or more ingredients in a formulas phantoms. Use the Phantom Type field toindicate that an item isa phantom, '* Build a formula for each phantom. The method for building formula that ‘generates a phantom is the same method used to build a formula for a regular bateh. The formula ingredient must bedefined asa phantom, Phantoms You Make Use a basicbreaddough for a number of kinds of bread, You do not sell itor keep inventory, however you nced to track its ingredients. Your formulas for bread contain #BASICBREAD plus whatever other ingredients are needed to turn plain whitebread intoother kinds of bread such as rye, whole wheat, and pumpernickel. In this case, you need only one version of the#BASICBREAD formula.Scaling Formulas ‘You can scale formulas ap or down by input or by output Follow ing are the Contriinuteto Yield ty pesavailaitle in Product Devetopment + Yes indicates thatan ingredient contributes toyield, ‘+ No indicatesthat an ingredient does not contributeto, Scale Type Definitions: ‘The quantities of items which are fixe seale are not altered when a formmulais sealed, For example, if a formula hasa fixed scale ingredient with a quantity of 10 kg and the formula isscaled by a factor of two, then the quantity remains fixed at LO ky. Fixed Scale With Yield Contribution The quantities of items far this seale type are not ltered when a formula or batch step is scaled. tf formota has a fixed seate ingredient with a quantity of 2000 ky and the formula output is scaled by a RRGEGROR, then the quantity remalins fixed at 2000 ky. ‘These quantities are taken intu account when calculating the factor to apply to the scalable ingredients so that the yield ratio is preserved. In the example that follows, the: ‘ato ERA SOREN sling the upen by a Factor of 2 tem Formula Guantity Prosdust A 11500 kg, Ingredient A, Proportional 508 Scaling Ingredient 8, Proportional Sg Lngredient C Faved ane 20 kg 15:20 = Liscale by 2 ASM lh ce 12D tn gill all oe 11S in (Quantity After Scaling 200 kg, 000 i roe iy 000gFined Scale Without Yield Contribution ‘The quantitis of items for this scale fype are also not aero when a formula wale ‘This isthe same a the previous example, however the item quantities are not considered wien scaling the ingredients. These quantities have no effect on ‘ciling, For example, i the following, kormula lngeetient Cla sed scale without yi contribution. I the producti scaled by a factor of 2 then the quantities after scaling ‘appear asi ingredient C were not inched. een Forman vanity oaniy After Seating Pret A ewe ae om Formats Quantity (Quanvty Aner Seating Ingres A Propetona! SUD roa sane gies paint MOS omg sate Ingredient Finland 2D ah Newent Proportional Scale the formula contains proportionally scalable ingredients then the scalable ingredients {are increased in a direct ratio to prxiuce the new product quantity In the following, ‘example, Praduct Ais proporthonally scald froen 10000 hg Wo 210 kg aes Formate Quantity Suantty Ae Beating Praduct A so kg sooanig Ingredient A Proportional SOO 000 saline Ingredient Proportional SOOO, ‘Sealing Wah pein ling Ingen A angrier a mld act 2 ‘Mixed Type Scaling: Fixed and Proportional With Yield Contributionformula that yields 3000 kg if scalable prodisct by converting 1000 ky, of fined scale Inggréstient 1 aie 2000 ky of sealable Ingredient 2 IFthe product is scaled by a factor of 2 to produce #000 kg, then 500) kg of Ingredient 2 és required, not 4000 kg: The factor applied to the Ingredient 2 quantity is therefore 2.5 rather than 2. Une inputs are seabed by a factor of 2, then the output is 5000 kg, or 2 times 2000 kg of Ingredient 2 plus 1000 lg of Iredient 1. The yield of the proc! s scale by a factor of 1.67 rather than by a Kem Formula Quantity ‘Quantity After Scaling Product B MR kg, 5000 kg Ingredient | Fiued and 000 ks, 10 ks Comentoting, Ingredient? Proportional 2000kg 5000 kg ‘Sealing ‘Mid Type Scaling: Proportional With Yield Contribution and Fixed Without Yield Contribution form Formula Quantity ‘Quantity After Seating Predict © 2000 ky 0004, Ingredient! Proportional = 2000 kg 00k Sxaling Ingeediont 2 Fixed and, 100 kg 1000 kg, Noncontribating, Understanding integer Scaling Lato) oY aad ‘Some matertalin process indlusteiesis picked feorn inventory jn eaches, sich ‘box of antistiticshedts. If an item is issued in 30 poxind bags, then itis supplicd in fll bags afel managed on the production fleow appropriately Ifthe UOM used in the formuta isthe bag, then you must sealein whole Integer increments. If you W dint toexpress the ingredlignl in pourtds, then jnteger sealing iS Hot Suflicient, You ined a Way tospecily that the ingredient must only be sealed ia. multiples of 30 pounds, ‘When materials arescaied by a multiple: a scaling direction valuermust be specified so that thesealed quantity is rounded properly. Scalingly a multipleresults in ingredients being rounded up or dawnt thenext whole multiple specified for the item in the formula, It is possible that theformula ingredient isnot scated as a result of ‘not meeting the criteria to round up or down, Rounding Varianeais required for integer sealing. If you do nat use rounding warianee, thon scaling typedefoults to proportional scaling. 20 pod bag of defoamant orSimple integer Scating The folloming 60 slp wsample of using the Bringer scale type with dinetional rounding: mC Permutnuy Guana Sung ‘Product Fag) OD kg, akg a Ingrechent | Propostionsl 1000 kg: 500g sane Angpeciens 2 tnaeprs 1 paler 5 patie Agron as. Formals Quay of pull eh th folloucing spacioes = SaleNalipte=1 Rounding Vario = 10 parent + Rowing Dicion= Fehr Inicnot posite to we 25 ples terior ltegre scale tenure the ‘Compas integer Scaling The fllowing example» more somplen exam of using he Integer scale fp ith taco orate tem Formala Quanity ‘Guantty Aner Sealing fein 200i svg logan | Popocion — 2004 some Seating Ingres 3 iter Sie ang Ingredient 2 has a Formula Quantity of 25 ig with the following specications: > Scale Multipbe = 25 kg © Rounding Variance 30 percent the Formuta Quanity Atte Sealing, This is03of 40 ig, p86 13 kg © Rounding Direction + Down: Scale percent 1.6 > Required Qty.=25"1.6=40 low 25 Req. 40 Up sO Variance 30% of Req. Qty. = 12 KG Direction Down Variance between 25-40=15 > 12Disabling the Scaling of a Previously Scaled Formula This advice applies to the Formula Details window. Ifyou clear Scaling Allowed so that scaling is not allowed on a formula, then the following message displays: Unchecking "Scaling Allowed’ for this formula will change the scale for all material lines to fixed. Copying a Formula Use the Copy Formula window to copy a preexisting formula into another organization, You canassigna new formula name and version to theswpied formula, The Use the copy a master,aid organization must haveaccess to theitems defined in the formula formula function to create customized formalas for usein general, si control recipetype Item Conversion to GMD YIELD TYPE does not exist upon scaling batch with fixed ingredient. (Doc ID 1369756.1) Upon attempting toscalea batch, errordisplays:ttem Conversionto GMO YIELD TYPE does notexistforthe item/iterrs inthe Recipe/Batch. Cannot scale/create batch, Why is tis happeningonly whena fixed, nan-contributing to yield itemexistsinthe batch? . Per design, ifthere are any items in the forrulay/batch with afixedscale type, youare then required tohave item canversiansexistfor ALL the other scalable itemsto parameter YIELD UOM which is setin Production Development Security Manage >Organization Parameters under the Formula tab Calculating Formula Product Quantities:5-Process Engineer Res. Male Sure to Set Onpantaation Assess for Resen MUProcess Organization Operations are depicted hierarchically inthe following diagram that shows the: ‘+ Routing composed of aseriesof Operations organizedin Steps. ‘+ Operations camposed of Activities containing Resources. + Formulacomposedof Ingredient, Product, and possibly Byproduet, ** Recipe linking the Routingand Formulatogether with Processing Instructions, ‘To Create Activities and Resourees and Operations Which Usedat Routing ‘Open Process EngineerRes Setup Activities S SBOP 2 hee ASO 2s 2? sao [Brahtors away waCreate Resources Define laborand machine avo Goes ~ Process Operationssess ds y« ais! gitelden JU Stbiuth ac see Sot of activities that havetobe completed for a presteterintied stepin a production bateh, Resource requirements thatare needed to perform theso activities areusually specified. You build operations from activities that require resources:The Process Operation Details Activities window links operatiansto activities, Create Operations > Which Contain Activity and Resources ‘opmen E se fe — oo ome ss sg ee pie Deacae SS ss Pecan ues Ho Yate ES * ay cess ay Final rapes ll —s - Fee ae eT | Save an operation that containsactivities with no associated resources if the operation status is New. Status cannot be changed to Appraved for Laboratory Use orto, Approved for General Use until all activities have resources associated to them. Add Resource to Operation Select Resource and quantity Process perHour ‘Here it means To identify No of Resource from Count Worker Produce 10,000 SUP per hourBesources Edt Actvdyline |) Define Process Quantity UOM “Important to Calchours based on Produced Qty” Here | defined itwithkG AnotherProcessCanbe Defined bycl ‘Save Operations & CreateRouting Operation Sequence to Produce Aspecificitem Process Rautings Process Routing Details oe Workbench ]| Process Operations — "| Recipes [= ]| saaes Sean and Replace ey} SP FAu)| Process Routing Classes gt|| Process Operation Classes || Aetivtios Generic Resources Plant Resources Atternate Resources Status Codes =‘Step Dependencies’ Et Gperason Displaying Fixed Process Loss Duking the production process, there ares number of reasons for losses, For example, losses might be attributed to the loss of ingredients or to.a lecwr yield of products. In some cases, the loss isa constant number or quailty ireéspective of the quantity of pproxtuct proclucesl or the agrectient consumed. This typeof loss camtunt be stefimel as 4 Penoentage. [tis primarily presented as a fixed quant 1h atypical production process, several ingredients are combines in ambeer: The material is trinspartes! to thee proshiction equipment from the supply tanks throwgh # ‘series 6f pipelines At the end of the production cycle or before achange aver to. scampletely different product, some tesidal snaterial might resin ithe pipeline. This residual material must he flushed before the next production process can begin. T residual material represents the constant amount irrespective of the amount of material that has passed through the pipe The fixed process loss amount ts dependent on the parameters of the pipelines, such as Esagiop linethe pipine dameter, emt. ann oer dimensions, Forename fa mises is view there different pipelines routed 10 tant maberia ts pumped through thew pipelines Smilary, thers willko .roshlual los uring clsunup fam the miset tothe Wenuler Thistose anette ta Oe ieee sais of the prenhn process. Otherwise, the fost aebutet to the ingneiienes propertinatl bused on te oss love Te foltowing pencest los cceurs the ditferemt stages of the production process. sich © Evapocation los slang the process Opera losses haing the prhaction, Resa Noes dy bagi (Gracie Process Maculacturing (OPM) Provtart Development mbes yt calculate he press fos using he flog: rts © Thacrenil proces Joss 1 Plannet process kins Displaying Theoretical Process Loss ‘Theoretical Process Lossecan vary depending an therouting or theindividual quantity being processed by a routing. This loss is defined at therouting level and is based on a minimum and maximum range of quan ‘The Theoretical Process Loss window enables you to enter the hy pothetical percent loss expected for a range of material processedtdut ing a apecified routing, For example, Hf ‘you ix a quantity of material ip to 100 pounds, then the predited loss mightbe 150 percent, or up to1.5 pounds. However, if you mixed a quantity between 100and 500 pounds, then you might predicta loss of 1.75 percent theoretical process loss, or up to 8.75 pounds lost. The loss could be attributed toequipment, evaporation,or any other aspect of the routing that detracts irom thedctivery of the full quantity of material added. Entering Routing Step Dependencies Use the Routing Step Dependensies window to create and modify routing step intertelationships.Step dependencies are those relationships between routingsteps that establish whether aspecificstepcanor cannotstart untilanather stepiscompleted Routingstep dependenciesreduce the routingdevelopmenttime by establishing a default sequence for operation steps duringa production run. Step dependencies are implemented atthe routing maintenancelevelto enable automatic step quantity calculation in recipes. You can define new dependencies ordelete the unneeded ones. Forexample, if step 10 is BAKINGand step 20s the COOUNGstep, then step 10 mustbe completed before ‘step 20 can begin. By this definition, step 20is dependent on the completion of step 10. Stepdependencies are usedtocalculate planned start times however, theycan be averridden. Avoid defining circularreferences, far example Step 10isiess than Step 20 isless than Step 10. Understanding Routing Step Dependency Selections Step Dependencies are definable as:+ Finish-to-start with nooffset, taindicate aprocess step beginsimimedliately aftérthe completion of its preceding step. For example, consecutive addition of ingredients is required without interruption. ' Finish-to-startwith positive offset, toindicate a process stepbegins aspecified period of time after the completion. of its preceding step, Forexample, time is required tarest material before the addition of anotheringredient. + Finish-to-start with negative offset, to indicate aprocess stepbegins aspecified periodof time before the completion ofits preceding step. For example, a production de viceneedsto be activated before the addition of the nextingredient. Start-to-start with nooifeet, fo indicatea process Stepbegins at thesame time as the step it depends on. For example, thereis a need for simultaneous addition of ingredients without interruption. += Stari-to-start with positiveotiset, (aindicatea pracess step begins a specified timeaiter the beginning af its preceding, step. Thisis similartofinish-to-start with negativeofiset, but by specify ing that the dependentey is stort-to-start,yaucan ensure the positiveoiiset is maintained if the proviousdependent step finishes early. verte seit renesrete eter seers reetrire rete deere erties7-Create Recipe Recipes standardize the structure of all information that describes production af one or more products. + Te provide thegreatest flexibility to process manufacturers, formulas and routings are built independently. They ae linked using Recipe that has validity rules"*a20 211". Different formulas can use the same routing oF ons formula can be associatedtaseverat different routings. + Arecipe eon be created in one inventory organization and then copied, modified and maintainedby another inventory organization. ‘Mass Search And Replace |- Setup, Process Reuting Classes Process Operation Classes m= Activities Gonerie Resources Plant Resources Altemnate Resources: ‘Status Codes Recipe > ant gen he Ge isl ‘asain 0) Routing Jlsformula} * Recipe linking the Routing and Formula together with Processing Instructions. Supe (Barman pea — = = [peses]Recipe Details window: Recipe Step/Materiaf Association todisplay all items from the recipe’s formula and associate them with specific routing oe avo Doeas «ies sO7e & tf Validity Rules: Make Sure to Check Validity Rules Deseagtion /FGOO-TEST Paces DDescapion TEST Roving fa tern F001«Enter the UOM as unit of meastire for the standard quantity: Required + Enter the Min Qty a5 the minimum quantity of material allowableby the validity rule Required. + Enter the Max Qty as themaximum quantity of materialallowable by the validity rae, Required, Important: This fieid cannot have a status that is higher than its associated recipe. For example, a validity rule cannot be approved, for general use until its associated recipe is approved for general use, You can change the status of recipes or validity rules to on-hold or obsolete even if they are used in batches as long as all the batches are closed or canceled. ‘Always Make Sure'to Change Status to Approve forGeneral Use Action > Change Status ‘Then Save t See (pemaate Geaat owe zoe vow i woes 7 es yarns Ht) st <= ee =" ce vat iiStep Quantity Calculations ‘When you select the Calculate Step Oty indicator on the Recipe Details window, the application checks to determine if there are proper step quantity material associations. ‘You must use a routing. Step and material associations must be made. If any of these associations are defective, then you receive an error message. When you use the Automatic Step Quantity Calculation, it checks quantities in each step to verify that material is available to pass into and out of each step. The quantity of material fora particular step is dependent on the quantity of material that passes into or out of it. The input material can be either the ingredient that is injected directly into the step, or it can be the output of preceding steps. Output is represented typically by coproducts or byproducts. “Tre panty of mate rien a pai opis depen on the igh of el pies bot out fa tp, lp ones cove ingredient 1 ieee cy ons ass eae at nce oa pacing gs “Tas fatowing camps oes han’ mule be inp, arsenal op fr, Asekes ofpeobicionnigs, ‘Step 1A 10;pound figs 4025 prs of grein 2 The ronal ound of Bypeott Ea 9 pounds mermadits 1 Tana ef ated Iss Kote: = Wher7Spoante erie © Norns punto Sep? + @Vorkpounisna sep ‘Step 2: Tranter of 105 poms feria 2 ftir = BNor24th pounds aS sre jst dry fo steps or nuerial tis ranstered rom preceding sep “The soltocing eeampie shows bane material caw input, unter ana output Hoek eos 0 proctn step ‘Step 1: At Ut pons of Ingectiont 1 Y.25 pound of Ingredient 2. The ret 5 Pree ot Byres Peai Tabs Vi ae elton $275 prams Produal 2 Be IOS pea tap? + or pout Sip Sep Trae of 10S po nie 3 ito (+ 39K e405 pdt Sip Sports Peete + het“The quantity of material required in a specific step is dependent on the weight of ‘material Hat passes into and out of that step. Inputmaterial consists of ingesdients that are injected divectly into steps or material that is transferred from preceding steps. Te fillowing example shows how material can be input, transierned, an Outpt from A series of production steps Step 1: Add 10 pounds of Ingredient 1 to 25 pounds of Ingreciient 2. The result i pounds of Byproduct 1 and 30 pounds of Intermediate 1, Transfer of Intermediate 1 is as follows © 25% or 7S pounds to Product 1 © 35% of 10.5 pounds to Step 2 © 40% oF 12 pounds to Step 3 ‘Stap 2: Transtar ot 10.5 pounds of Intermediate 2 is as follows: 6 oF 2.625 pounds te Step 3 © 75% oF 7.785 pounds to Product 1 yusly described example. LB is equal to pounds, Stop 2 KOry= 10.5 LB) r] Taner 39% Transtor= 26% ‘Tanane= 26% Traney= £09 ~ Enter Recipe Name, associate by Formula, Routing-The-out puit Quantity displaysthesum of the product quantitiesentered in the formula. UOM is the unit of measurefor the formula associated with this recipe. Enter Recipe Type as: “Master to indicate that the default ic. Master een + Site ineicote that the seta recipe type i at the site level, Thevs is one site for each place that makes the i + Geri to indicate that the default recipe type's-ane general recipe for each spec product aration made by « company. defines fn an equine independent maruw, the ny cated ne = Select Contiguous if routings in this recipe must be runin one contiguous block of time. The batch that uses this routing cannot stop and start,even if it runs into downtime on the shop calendar, -Bivler the Planined Process Loss as the loss of process material obser ved during production of a bateh usingthe eesipe. Ifo valueis nat entered in thistield, then it defaults to the value entered for Theoretical Process Loss. Displaying the Recipe Step/Material Association: Use the Recipe Step/Material Association window todisplay al items rom the recipe form with specific raatingsteps, Associating an Item to a Routing Step If production and consumption of materials are controlled at the step level, then the specification of material input and output for each step in a.recipe is required. The Formula Item view under the Recipe tab lets you select one or more items ard assign them to a routing step in the navigator or on the routing step dependency graph using the drag-and-drop operation. This function is available when the View Unassigned Items option is selected on the Fermula Ttem list. You can also use the Item Master ‘option. The Item Master view displays items from the item master table, and you can acd nety iteans to the formula.‘OPM Process Execution parameters > Using “Production Supervisor” FromIt Create Bach and contral batches, Simulator and Setup Defaults for Production Process eel — Execution Parameter: Setup-> Parameter‘To add (Select Process Organization) 4- Batch Setup Tab (RRB Ones ners ane age Coretta fer tees Cagnen Pee one oom nye a so =e = = ———— - Display Unconsumed/Unyielded Materialto view the unconsumed ingredients. and unyielded products when abatchis, complete. = Allow Material Deletion “At batch status pending” 2-Create Batch Seno ERTL snare ono on rng = Check Material shortage or not “inventory organization level” ~Scleet Copy Formula Test to copy text from the formula header and det tothe batch header and details during the batchereation process. Allow High Level Reservation -> not preferred tobe selected to avoid Reservation before Release Work Order “Batch”Select Créaté Move Order to create move orders during batch création for theingredlients that do not havesufficient inventory in the supply sub-inventory//+/In-Case using WIP Sub-inventary for transfer materialto" # ll aes G Aeon aan 3 Document Numbering: a-Inventory Transaction TabThe Make to Order Rules window enables you to define rules for creation of Production, supply in responsetoa sales order througha batchor FPO. -Production Supply > Based on Sales Order What's the Reflecton production (Create Batch or Planned Order) Select Check Availability +ifyou want theapplication to check for an-hand inventory beforecreatinga batch. if you do, not -select the check box, then a batch isereated for thearder quantity irrespective of the on-handl quantitySelect the Firm Indicator to-> preventthe Advanced Planning and Scheduling (APS) engine to reschedule the batch. This, is not enabled for firm planned orders Make Sureto SetCorrect Ship to Site (Prot Opton —Omerption _etautt Options Recommences Ne (Change Cove. EME Bach The pe Bath yee See Freda bP eyserapeiin aoa ng, Ese = GMEFTOR ets Ths petie FPO Alphanumeric Ste Se MIPEattin open apaiin ania ag, Create Sales Order and Book itMake Sure to be all item attribute Correct 1, MO: Set Client_Info for Debugging Set the value of the Profile Option "MO: Set Client_Info for Debugging" to 'Yes' for "Production Supervisor” responsibility. Note: This profile setting is no longer needed unless you are running old code. 2. Enable workflow event oracle.apps.gme.batch.reservation and its Subscriptions Path :Workflaw Administrator event manager. 3. Make sure that following setup points are achieved for the product item to be ordered through sales orders: Ttis an inventory item: Tt is OE Transactable Tt is Process Execution Enabled Before RunningThen From Production Supervisor Run Request :"Process Manufacturing Nake to Order" | i} 0 O Parameters: Org Unit Order No, Customer, Item, Warehouse: TO check Request Resultyouhave toopen “fil to show Created BatchBatch 10 has beencreated Check Created BatchPlanned Orders: Firm Planned Orders > 1» . 10 discusses how: to convert the frm planned order toa batch ‘Creating a Firm Planned Order You can Create Planned Order from While adding item at product output at Creating Batch and no Data found “Make Sure Recipe is approved for General use " “No need for MFG module to St profile dem Validation Omanicatiou” Findinga Firm Planned Order You Can Find Planned Order by status or Document No. or DatesStatus Exists are : Ce re ony enn Gare ce ‘You can edit text, convert the firm planned order to a’batch,cancel the order, rerouteor reschedule, and scale the firm planned order.To convert to Batch ‘Tools > Convertto Batch ‘ToCancel or Reschedule oF RerouteBatch Created by No.2 Batch Creation Inventory Structure at OPM rvotry Sepia Stactre SF 4 reece Pe Se me | Inventory Organization Inventory Organization isa plant where the batchesare praduced or an organization that holds the inventory at specified locations. Offsite warehouses and distribution centers arealso designated asinventory organizations. For example: Plant PI, Offsite Warehouse W 1, Distribution Center DI.Subinveritory is. subdivision ofan ihventory organization representingedther a physical area or a logical grouting of items, sichas a storeroom or damaged inventory. Inventory balances aretracked here. Reseevationscan be placed against inventory at this eve. lems can be restricted to certain subinventories.A subinventory canalsobe a division of» warehousethat holds inventory with similar planning and reservation characteristics For example, staging area, manufacturing area,and distribution center. Supply Subinventory is thesubinventory from which theitems required for batch production ari¢consumed Ik can be the shop floor or staging location. Process loswis the material lost or is unrecoverablein a production step, due to factorssuch as evaporation or changeovers in production processes. Lost materials need to be planned for to achievethe targeted process quantity for steps. The loss can vary depending on the material being processed, Therefore, a production loss factorean be defined at the routinglevel and this loss must be reflected in bath planning for and production of ingredients associated witha particular step-Oracle Process Manufacturing Product Development enables the entry of process oss factorsto facilitate better material planning. “There is 2 type for Material Loss ha iy ao 1+ At Formula Level > Serop Percentage “slic yom A ada ad ia ay aha” 2. AtRouting Level 9 Loss WhileProcessing At Routing Level: In OPM, the following types of process loss are recognized and can be planned forin pees processes: is the expected quantity of material lost for a range of B.Aspecitied routing, Theoretical Process Loss can vary This loss is defined at the routing level andl i range of quantities. planned process loss to reflect the planned percentage of material lost for a specific routing, [=~ Fixed Process Loss}: a constant number or quantity of material lost in a production process irrespective of the amount of ingredient used or product produced and is expressed inffixed quantities} For example, consider a production process, where several ingredients are mixed in a mixer. The material is brought to the production equipment from the supply tanks through a series of pipelines. At theend of the production cycle or before a change over to a completely different product, a specific quantity of resiclual material is left over in the pipeline thatis flushed betore the next production process can start. The residual material is the fixed process loss that is constant irrespective of the amount of material that has flown through the pipeline and is dependant on the parameters of the pipeline. Fixed process loss is not considered for material planning,You can choose to Sfiphy Gked process [Sse mu OInically (Ml! HukeNes Ereated in an organization or to Specific batches inaveictially, By Setting up the Apply Fixed Process Loss parameter [Refer to Selling Up Parameters and Creating 9 Batchlor Firm Planned Order Theoretical Process Loss: Mae an hp 0 4 i ae Men parecine Ua 3. The following fields are display only: © Min Quantity displays the lower limit for which the displayed Theoretical Process Loss percent applies. © Max Quantity displays the upper li Process Lass percent applies, it for which the displayed Theoretical + VOM displays the unit of measure for tte minimum and maximum quantities, ‘* Process Loss displays the loss of process material for a range between the Min ‘Quantity lower limit and Max Quantity upper limit,+ From Pending to Work in Process, select Release. * From Workin Process to Pending, sclect Unreleased, ‘rom Pending oF Workin Process to Completed, select Complete + From Completed to Work in Process, select Revert to WIP. + From Completed toClosed, select Clase. + From Closed to Completed, select Reopen * Select Terminateto terminatea WIP batch, Select Cancel to cancel the batchor Firm Planned Order. Relation between Batch Status and Step Status” Pending batches canonly have batchsteps witha status of Pending * Workin Process can have “Pending, WIP, and Completed” * Completed batches can have batchsteps witha status af Completed or Closed. * Closed batches canonly have batch steps with astatusof Closed “Terminatinga batchcaneels any remaining pending steps Barely Bach Step Seated Status and Pending Addins ( Fensing — Ld Wok in Process rygase (Ford nase - ‘ip Cometere Werk in Process Fieverio: sie Campietes we ose a rn Cased CorProcess Order Create Document > Work Order Manual Generation Production Supervisar-> CreateDocument —_——— TT cone — sorte a ——Then Ok + ifthere is any Shortage -> Shortage Form Will Appear with Itemcontain Shortage iB ome appessns ie Eat thew Peser fous iow tte sve SGD £00 Fe ADSOH 2 Planned Oty Revered Ghy VOM | Orhan iy Aone To Tra 14an6a ig 2 ‘ode Oke | Q Rien | Prat Gunty [SO Uo FEST nag Ta Planned Stan |1OFEB-2021 12.41 00 Framed Compiaion [iOFEE-212% 1241.00 Regie Corglsee AOFEBADT DT Use ny Cae Ve Vay is by Cie Workday Cent ifthereis more the Approve for General use Recipes youhave to Select Only One Which used atprocessingbateh Substituting Items During Batch Creation: ‘At creating Batch incase Subitem Exist > OPM automatically provides the liu Slsijubiny for Buisics concurrent program to update the batch and replace the original item with the substitute ton (White Pending hatch and Sub item Created -> nat updated automatically tiveed te Run fem Substiitin Jor Buuches concurrent To update subitem with originat one The ValidatePlon Dates parameter validates the planned start dateand planned completion date against thevalidity rule dates used for the batch, Dates cariiot be outside the date range defines on the validity rule,Rerouting a Batch: To reroute a batch: favigate to the Batch Details window, 2. Select Reroute from the Actions menu. 3. Select an effective validity rule with a different routing. A message displays when. other validity rules do not exist for the formula, 4. Select a new validity rule, 5, Click OK, Reservation: To maintain reservations: Select Maintain Reservations from the Inventory mons, Refer to Entering Reservations, page 5-5 for more information, To create high level reservations for a batch: Select Reserve Batch trom the Inventory menu. Refer to Creating High-Level Reservations, page 5-3 for more information. 1 Sshafesne Une te ivenoy net] 2 View the reserved quantity on the Batch Details window. Refer to Creating High-Level Reservations, page 5-3 for more information. To create detall level reservations for a batch: Select Auto Detail Reserve Batch trom the Inventory menu.|Reter to Creating Detailed Level Reservations, page 54 lor more information To create detail level reservation for a material line: 1. Select Auto Detail Reserve Line from the Inventory menu. 2 View the reserved quantity on the Batch Details window.1-Check Shortage on Inv. Level and Org Level From Batch Detail-> View org Level shortage, inv. Shortage ‘Sub-inventory Level No Shortage at org Level ( meansthere is available on hand at another Sub-inventory otherthan Supply Sub-inventoryPendingLot: To Create Pending Lot for Product Enter Product TabiSelect Pending Lot you Save and Check Lots at inventorywithout Origination Date only tot Created for itemwith Default status and no Expiry Date assigned for pending Lat Reservation Soft Reservation without hard commit perinventory, Location, Lot *NetREcoRmended” |)Reserved Qty. Change from Planned to Reserved (ETSHLEVEIRESENVAHOR “Recommended Hard Commit inventory with Location and LotIncase we using $i So we have FirstQn Requirement maIf we try to find Move Orders to allocate and Transact No Material FoundThe Problem Because Of Picking Rule not suitable to Plant Solution Na EhableThen at Organization Parameters: Open Production supervisor Res.:Le]Mass Batch Transactions: To manage Transaction on group of Batches at the same TimeIngredient Picking Batch Operation WIF Inguiries Setect Batches and then SelectNeeded ActionRelease Type (Automatic) > means by Change Batch Status Automatically Step Status Changed bor and Machine hour (After Complete Batch)ase Will issued Automatically by Release Batch, i r ase by Perfor WAP ISSUE Transactionen Texmnate Reson | Peet a ‘Actin Sia 28-06 72021 3630-0 eset Common |Material Reserved Qty. converted to Actual Qty. eet tt stat ttt tt tet tt tet ttt tt tet tt tt tte Material Transactions: ‘Transaction datesdo not update ifyou change the: * Actual start dateatter releasingia batch. * Actual completion dateafter completing thebatch. + Ingredients: * WIP Issue: Issues ingredients from inventory tobatches tofulfill material requirements. If you issue lot-controled ingredients, then identify the lot num vers toissue, © WIP Retum: Returnsingredients from batchesto inventory. For example, when you unreleased a batch itdoes not consume the ingredientsand returns them tatheinventory. WIP Returns reverse W IP Issues. * Products: * WIP Conipletion: Issuics the products produced from the batches to the inventor “WF Rem: Reture the product rom inventory vobatches For exam EES ‘FREHBREEIO WIP, then the inventory returns the products. Toview move orders:Material Summary > To Check Material Oo-hand To show transaction history for Batch13) ES a a | [nareseoe _"] Ne Ste ee | |imorectene =| 9 a ! a LcThe Material Exceptions window:Window Show Automatically when: 1+ Release a batch andany ingredients witha consumption typeof Automaticandare not fully transacted. 2- Use incremental backflushingand the quantities that arebackflushed and arenot fully transacted, 3+ Complete a batch and have not transacted any of the ingredients, products, or by praduetsin the batch. While Batch Completion and thereis Remaining Qty. at Exception Qty, > Exception form willbe shown cc Tie} Ge tee fe 27-OCT-2021 14:33:08For Product and byproduct item, | cancreate pending lot for upcoming Batch From Batch Detail-> Open Product tab"an Piaemaceenaia] es omen nmioe Parma yews yO Oy eka Uo == “covgtae Parsata ot ‘Moen cnooo| oon aceon|_—_ooncooen)——=—=—come sur” F t T — | —tI 1 1 [ f f f I t f T T t Paraate or te e00 eomece Teron Paweict ut praen ae [VO [Secor ty Sande OM [i uses ooo) sare r = 7 Conca on Generate Lot and Allocated Produced qty. for this Lot(A) Release Batch : *Create Batch > fram Action Release Release Convert Batch Status from “Pending” no transaction can performed on it to “\\ViP” Batch Ready for transactions *Enter Actual start Date for Batch ‘ofthe batch validity rule,and advises you, if theactualstart date the validity ruledate range. The application checks for ingredient reser vations to create transactions, If inventory shortages exist, then tho edients arerepartesds exceptions. For a production batch or a laboratory batch with Update Inventory indicator set to Yes, the application checks lot status and expiration dates, checks for inventory shortages, completes transactions, consumes the ingredients marked for autoconsumption, and updates the WIP planned, planned and actual quantities.** Batches at Pending Status ** teaisactedt** Batches at WIP Status ** If manual transaction for ingredients and product Then after convert Batch to WIPEstimated time for ResourcesEnter Actual hours per ResourceComplete Batch From Action > Complete eam (7-907 200 028 en Comte | ‘om ome Require to Enter Complete Date for Batch And Will Open Exception Form for unconsumed material or un-yield productsException Form Unconsumed material Exist 3] [om tee te ean) Tay) Tima) Rae UO (tenant aca Reenistes — eeeineeeey faves fa Sy UO | Sey yee Visti i eee cee Steps status will updated while it’s automaticRevert to WIP If yieldis automatic will Reverted by Revert to WIP From Action >Revertto WIP Closing a Batch Tho los Bat akg Box ets yu chose a bach, Only a completed or weinated atch ich. This ing a bateh prevents any further editing of are sontident all the batch intornation i+ corded correctly Prerequisites = Compe aback]Can Reopen Batch from Action> Reopen Batch(B) Unreleasing a Batch ‘Onee abateh is released, you can to revert its status from Releastel to Pending. Completed transactions arereversed, actual values are reset tozero, and invento “All Committed transaction Reversed” Warning message to confirm Recreate Reservation and Pending Lot for this BatchAll transactions has been Reversed and Reservation, Pending Lot Recreated Warning When Yielding Batch Material into an Existing Lot Warning When Yielding Batch Material into an Existing Lot {Une he inventory enganization parameter Aa Dittevent Lot Stat to ponent ‘Feling ahi ia locaton where the lot alas ets. tet as. eats different ron ‘ha er eda tai: ‘| SettoNo, the prameter prevents the vivid transaction fran being syed. The [appcation displays an error message inlicating that the lt alewaty- exists ithe target cation ara tha thas. tats ttnent rom the etl sta. Sito: Yo. the parser th yl rant tan te sea ta sizoady inthe target orton. Set to Yer Wh Exorption. the parameter allows the yiebd transaction to be saved only if he ors Duan Yalance of hw tt in ths eargetSocation sO his case, the squsnaity yielded assumes the default stars toe the een The pannineter ly applies when te ft fas starusdithrent trom the item status Bf a oe yoda has the tom detault seanas the: you ca yan altiional quantity the sane lxation,Define consume type and yield type by incremental Sees AD gl ay igi @itell Complete day Lal c4 4B Jbl IG Ge lS al gall cys Antal] dpaSl) yuldall Incremental back flushing. lets you record production output or yield incrementally as it occurs prior to batch completion, theapplication, estheingredient usage by backflushing the ingredients based on product yieldand WIP planned quantities. «Incremental back@lushingcan only be performed on batches witha status of WIP or Completed Races Yorn ‘Proea Stn Panes Consieten 2® Display Unconsumed/Unyielded Materials You willbe able to do incremental backflush only if batch status is WIP or completedMaterial Exception Window will be shown ie — f fe) CaProduct at Batch after incremental backflush product is not reserved, Each timea new lot of the product is yielded, the lot number and quantity produced is reported.Batch Completion: Completing a batch indicates the batch is finished and has yielded all of its products Prior to batch completion, transactions assotiated with the praduct and juct lines set for automatic yield have a Pending status When you complete a batc! and pending product fots. if you select the Display unconsumed/Unyielded Material parameter, then the unconsumed/unyielded materials also display. If the Warehouse Management Systems (WMS) application is implemented, then putaway rules are applied using the yield transaction. Otherwise, the default subinventory and locator are assigned to the transaction. ‘You can change bateh status from Completed back to WIP, Ifa production staff member accidentally completes a batch, then you can revert the stats of the batch back to work in process. “All Transaction has been completed” OPM Financial Cost Methads Usedat OPM (Standard, Actual, Lot Cost) Defining Costs: (Gan Define Cost Muliole Level tatom 2ainvantory Org3.CostCalondarand Pariad -4-1nanple Coat Typos (provioushy refered wt Cost sds) 6-0ost Component ‘The und cost alan tom is usialy bicker dwn ino severalbucktis thar airiuied to vatious sources fal ormithe basso the Goat (ios ats ie individita! buckets oF CONSORSHRIOS that make sp the (tal cost for exam h ASA aS, and produetionor conversioncosts ‘Thocosteomponent classesare chissifid into 5 different elements Oc usages: Material, Resource, Overhead, Expense Allocation, and Standawd Cost Adjustment types Analysis Code ‘component class can be further broken down using costanalysis codes for mie granular tracking of cost Allain Gener edgier expense isa method by which you cam distribute the iidliFEst expenses of manufacturing, (1 administrative and general expenses) to item costs The balances in the expense accounts are distributed to iens’s) based orieither fiw percentages ordynanically derived using other General Ledger account balances Monitoring Costs OPM Cost Management privides several reports and inguirics to monitor andl analyze costs: hem Cost report * Allocation report + Sub-ledger reports Lot Cast History report Simulating Costs OPM Cost Management provide ths fllouing simulstions. and kets yauestablish "what scenarios: Actual Costs-of tems are developed using the actual business transactions. The product costs are net based onthe fornila, routing and recipe details bot rather based-on etal consummptions ofrmteriais and resource usagerecorded tthe production batches Expense Allocations. Overheads Expenses accrued in General Ledger can be allocuted to specific items usindizect overhed costs, ‘You can assign andapply overlicad costs tocither raw materials or finished yoorls. 1 overhead east calculation far actual cost ros is Mental to that used for standard cost rollups 1+ SetupCostType OPM financial-> Setup> Cost Types Abie to Create More than one cost type as (Actual, Seandard and Loeciont While Using Actuat ‘You have to Select fay to Calculate Materlal and3. Actual Cost Calculation Methods 43.1 Period Waighted Average Cost (PWAC) PWAC = (rum of trans gtyterice }/lavm of trans ay) ‘a Gy dnt Guan AP ace mete aA Dh ov Frees Recast erated res AP nr alps within he ton eng 8.2 Pero Moving Average Cort (PMAC) 'PMIAC={pror period and balance "prev period cout) tran aty*price} | prio period end balance + sum of (trans qty) Por Ped by Balance Thi he pian invetayblance of io mvriry pve ending balances Prat Paar The pr sera aca component Wm th com component ets ae "any: Eres ranean Gunso AY ina within he olin pot Pree ecest erated ores AF inact alps within he coven prog 3.3 Perpetual Weighted Average Cost (PPAC) RAGS (sum of trans aty*prica} /[sum of trans aty) ‘ent ly: Ate Guat or A nttaced ratte om he rt lhe entngraandr tthe endl tect period Pcs -Redigcovnaled cs A ee Bal pe us Bab anda? Then Save 2 SetupCost Calendar Setup>Cost calendar ‘The costlag calendar ie completely separate fram the fies! calendar ‘Therein. Cost Calendars support mulsple legslemttiesandeasttype. id the pais‘Add Calendar Name and Descriptionand Start Date then Save 2 Then from Assignments ‘Add LE and Created Cost Type Period Status-> to open Targeted Costing Period‘To Close Period > FromActian then Close Period 3+ Defining Component Groups: groups lets youcollect specific material and or resource component costs for category groupings (lor expe, cota tara races, Group component “eompaneet oath cost by category 4- Cast Component Class‘Conshlered as Lower Level of Cost Component to be mote anulytical na particular fouls, youhave 19 ingredients: one's a dry raw material (assigned component ohss eodecalied andthe DRYMAT otheris a.sohition {assigned component class SOLMATL). When you view the product ¢osis, he lam Cost window shows DRYMAT and SOLMAT as the cost components.cach with its espoctivecost5+ Defining CostanalysisCodes 8 ptt eg ‘Cast component class can be furl ‘As Material Si phan fb pte broken down using costanabysis codes formore granular tracking af costs. Component Analysis Value MATERIAL DIR $18.765948788 LABOR DIR $22.150680432 INDIRECT EXPENSE IND $13.502400000 PACKAGING DR $5.765980654 Total Item Cost na $60.185011874 DIR = Direct Costs IND = Indirect Costs& Defining Costing Organization Associations (OPM imuintaing separmte item costs foreach inven inventory onganizations transaccthe item. byt the item costs in all of hose organizations are the same. ln such cases, OPM lets youcreate a costing organization and share t with otlecrinventory organizations (OPM lets youassociates singh’ costing organization with multiple inventory argantaitions through costing organ ition FY organization, Hawever, vou can havea situation i which multiple Associations 7- Defining Fiseal Policies SelectLegal Entityand Ledger& currency than add Valuation Method ‘Assign Valuation Method& Define percentapeoverheadcodes. ‘To add percentage even for MaterialitemorforFGitem Applied to hem and added to itself (thats, Direct or Production) Applied to ingredient but added ta Product (thatis, Consurmption) 9 Define Resource Cost OPM financial Resource Cost :10-Defining Fixed Overheads Use the Fixed Overheads window to setup and maintain overheads. A overheadisacostassociated witha resource otherthan the resource usage assigned in the routing.‘Assume youneed a laborer to clean MIXER|after each use. To account for the cost of cleanup, instead of adding anathercomponentcastto each item that uses MIXERI, youcan assigna overheadto the items being produced by that laboreron MIXERI. The overhead assignment wouldbe the time ittakes the laborertoclean MIXER! multipliedbythe cost perhour forthe laborer. 1naddition, you can add other costs intothe overhead (forsuch thingsas cleaningagents). = _ Enter the Hem code forthe product or intermediate to which this overheads assigned. For example, if the product Blue Paintuses MIXER| asa resource. and you assign a overhead for dleanup of MIXERI to the process for making Blue Paint, thenenter the item code for blue paint. ~ Biter the nuner of this revource used the production ofthe item in Resource Count, For example, it takes one laborer to cleanup MIXER] afiercach use, thenenter!| (laborer). Ibis number ts multiplied by the Resource Usage (ocaleulute the total resource usage Using Actual Costing Actual costs cannot be entered manually using theCost Details window.To-enter costs for the first period for Actual Costs, use the Item Cost API tofoad thecosts Does actual cost support invoice override of receipts? ‘Yes. Actual cost uses the invoice peice, ifavailable, and the invoice prise is preferred ‘over the PO prieein cost calculations ‘Overhead Costs (Qverheael Unit Cost is calculated by dividing the Item Quantity intothe sum af — ‘Ovecheacl Usage, multiplied by Overhead Quantity, multiplied by ResourceCast, 2s shown in the fetlowing illustration, Ovabend Usage 4 Qurhemd Quantity ¢ Resume Cost ern Quuaraty Ovathend Unit Gast = Expense Allocations You cantakean expense amountand allocate it through to multiple raw materials or products on a percentage basis. You san perform any last minute adjustmentste allocations prior ty Actual Cost calculations. Ensure that expenses areallocated in thecorsect period and that batches arecompleted and closed in thesame period. Another alternativeis to enter the secount balancesiMoOPM manually using Cost Allocation MaintenanceGL Expense component cost = [(Previous Period Inventory Balance * Previous Period Expense Component Cost) + Expense Amount for Current Period] / [Previous Period Inventory Balance + Received Quantity] For products, the quantity is determined as sum of the previous period balance, the total quantity produced and the total quantity received, if any. The expense amount is the sum of expenses to be allocated in the current period and the product of prior period inventory balance and prior period cost. This is represented as: Expense component cost = [(Previous Period Inventory Balance * Previous Period Component Cost) + Expense Amount for Current Period] / [Previous Period Inventory Balance + Produced Quantity + Received Quantity (if any)] The Actual Cost Adjustment supports three adjustment types: * Average Cost Adjustment * Value Adjustment # Unit Cost Adjustment ‘The Average Cosi Adjustment typelets you entera quantity anda cost. This adjustment ‘simulatesa transaction that happened outside the OPM Actual Cost process iit (Pree Quantity sg Prior Cost )+- Sum of (Racuipe Quantity: 4 POPrica )- Awarage Coe Adguctrnants: ee . (Price Quantity 4 Sumct Renepe Quanity + Sunof Average Cor Adjustment Cuaiity ) The Value Adjustment type lets you enter an adjustment without a quantity with a value to apply to the entire quantity considered for actual cost calculations. ‘The Value Adjustment is calculated as follows: New (Price Quantity Prior Cost) + sumof (Rept Quantity + FO Price )- Valo Adpastinants Brat = = (Pree Qansty + sarncd Recaps Quaticy)The Value Adjustment type lets you enter an adjustment without a quantity with a value to apply to the entire quantity considered for actual cost calculations, ‘The Value Adjustment is calculated as follows: New (Pree Quantity Prior Cost )-}- Sumot (Receipt Quantity POP:iae) }- ValiieAdjistenants Unt Cost (Price Quantity 4+ Sumncof Renept Quantity) Production Batch Costs Actual ingredient usage from Production is captured for clased batches. Ingredient cost is caleulated by the actual cost raw material method for your cost method. Actual resource usage, count, and throughput aresaptured in the OPM Process Execution application, Resource rateor nominal cost is entered in costing, Batch unit cost is calculatedby dividing —thesum of ingredient quantity. multiplied by the ingredient actual cost, phis the suum of resoutcense multiplied resource rate the batch item quantity, asshows in the following illustration: (Sum of Ingredient Qty % Ingredient Actual Cost ++ Sum of Resource Use # Resource Rate) Batch Unit C Batch Item Quantity Production Batches: In Process Execution, when.o lab batch isereated you ean s} ‘In this case, noinventory transactions arecreated and the Actual Cost process ignores these batches in cost calculation. As a result, the variarices arenot calculated, Product Transfer Example t: Praduct transfer from preduction inventory organization toa distribution inventory ‘organization In thisexample, the enst for the product PROD-A is as follows: Production Inventory Organization: WHSI + Cost: $5.00 per LB Inventory Balance: 200LB Distribution Inventory Organization: WHS? * Cost; $600 per LB Inventory Balance: 500LB Transfer 100 pounds of product PROD-A from the production inventory organization WHS1 todistribution inventory organization WHS2. The inventory transfer originatesfrom WHSI, theres no impact on the-ost in that inventory organization. Cost is impacted at WHS2as shown: * Cost at WHS2 = (Previous Balance * Previous Cost) + (Transfer Qty* Unit Cost at WHI) /(Previous Balance + Transfer Qty) = (00* $6) + (100 * $5) / (500+ 100) = 000 + 500/600 = $5.8333 per LB Setting Up Expense Allocations