MFG Process Setup

OPM

Oracle Process Manufacturing by MLA

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
Define Formulas, Define Routing, Define Recipes
3- Process Execution
4- Process Costing
5- Process Planning
 1- Predefined Setup:
1- Create User with Responsibilities:

F11 to Open Search Mode

Enter name  Mina Followed by % then Ctrl F11

Add Res:
System administrator

P urchasing Super User

Inventory, Vision Operations (USA)

P rocess Engineer

Formulator

P roduct Development Security Manager

P roduction Supervisor

P roduction Operator
O P M Financials

2- Create OU
Inventory Setup OrganizationsOrganization

Select at Classifications  Operating Unit

Make Sure to Enable it  then Click on Save

 Others

Select Operating Unit Information

 Add Primary Ledger and Legal entity and OU Code
Then Save
3- Create Master Item Organization

Select at Classification  Inventory Organization

And from Other Select Accounting information
Inventory information
No Receiving Information for item Organization
 Make Sure to Add Related OU  MLOU

Set Default inventory information

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 discrete organizations.

The costing organization that controls the costs in your current organization and the costing method are
displayed. You cannot make changes to these fields.

Some Default account at Org Level Can override it on Below Levels as sub
inventory
Other Account Tab
4- Create 2 Inventory Organizations (one Org as inv org -ML1- / another one as OPM Organization -ML2-)

At O rganization Classification add Business Group (to use position hierarchy at Procurement)
Inventory Organization

Ac counting info

Inventory information
Rec eiving information
 For Process Org

Open Organization Parameter

Make Sure to Select Organization as

1- Process Manufacturing Enabled
2- Make sure to add Master Item Org
At Cost Tab

Automatically Cost Method Change to standard

Why Standard for manufacturing industries some industries need to keep item cost no many changes occur on it

Regarding to Average Changed every time Transaction Occur

For standard any variance stored at variance account, and analyzed and in-case any Change needed to Cost can make
Cost update

To Create Move Order at Transfer item for Manufacturing

Receiving information

Create Sub inventories at each ORG

Inventorysetuporganizationssub inventories

Quantity Indicate whether each transaction for this subinventory updates the quantity on hand for the subinventory. If
Tracked deselected, on-hand balances are not maintained and you cannot select or update the Asset Subinventory option .

Note: You can update this value only if there is no on-hand quantity, no pending transaction, or no uncosted
transaction for the subinventory.
Asset Select this option to maintain the value of this subinventory on the balance sheet.
Subinventory
Note: You can update this value only if there is no on-hand quantity for the subinventory.

Type Select a subinventory type:

 Storage: Designates the subinventory as a Storage subinventory.

 Receiving: Designates the subinventory as a receiving subinventory, and links it to a receiving location. This subinventory type is
used only for receiving material. M aterial in this type of subinventory cannot be on-hand, or reserved.
 Null: No subinventory designation

To override Accounts at Sub inventory Level

 5- Set Organization access for Assigned Responsibility

InventorySetuporganizationorganizations access
2- Product Development:
Setting Up Parameters: From  “Product Development Security Manager” responsibility
First Set Organization Access:

Enter Product Development Security Manager Role to Set Some Defaults as Formal, Operation, Routing receipt
Defaults

Organization Parameters
 ‫ المتعلقه بتطوير االصناف‬Defaults ‫ال‬
GMD: Update On-hand Status in All Locators:

This profile option controls whether the final sample group disposition can update the status of on -hand lot inventory in
all locators or only the locator specified at the time of sample creation. If set to the default value, Yes, this profile option
allows the material status change across all locators where on -hand inventory exists for the lot. If set to No, it will strict
the material status change to the locator where the sample is created and on -hand inventory exists for the lot

3- Create items to use at Formula

Change Org to Mater item Org “MST”
Open inventory itemsitem Master

Create Finish good item

Inventory Tab (attribute in it)

Cost Tab
COGS Account to be override on the item Level

Purchasing Tab

Expense Account to be override, item taxable and Require RFQ or not, invoicing Method to Match
Work in Process Tab
Process manufacturing Tab

Make sure to Select Process Execution Enable

Assign item to inventory Org

Create RAW item and Assign to Orgs

4-Formulator
Create Formula for Process item
Open Res Formulator
Can Setup formula Class, status for Formula

Formula Classes
Formula Classes group formulas with similar characteristics and requirements for
reporting purposes

Formula Header and Details:

Products and co-products and Ingredients must be recipe-enabled

+ Create Formula Same As Bill of material for discrete items
Add finish Good (Product and its Ingredients)

Make sure if u are using by Product to be allowed From Manufacturing Organization Parameter

Scaling allowed if item increase or Decrease also affect Quantities of ingredients
If we remove Check Box of Scaling allow

Cost Allocation item affect by batch Cost

Can both standard and packaging formulas be created?
Yes. Use the Formula Details window to create both standard and packaging formulas.
To set up a packaging formula, enter the packaged item
itself as product. Then enter the bulk item, packaging container, and package label as
ingredients.

Add ingredients

To add Scrap Percent

Formula ingredients can be scaled using rules that specify whether or not an
ingredient contributes to yield.
How to Consume Material (Consumption Types)

1-Automatic  by Batch Completion Consume Material

2-Manual by Entering Manual transaction “WIP ISSUE”
3-Increament when ingredient consumption is calculated by incremental backflushing.
4-Automantic by step After Complete step

Contribute to Yield
Ingredients are contribute product output or not

To Scale by amount or Percent

Oracle Process Manufacturing (OPM) does not calculate the cost of production of
byproducts. Any items produced by formulas that you want to calculate costs for must
be entered as products
Using Formula Phantoms (Not Stored , Not Sold , Trackable)
Phantoms are intermediate formulas that are not manufactured as products. Phantoms
are sometimes referred to as transient subassemblies.
Two fundamental tasks are associated to using phantoms are:
• Identify one or more ingredients in a formula as phantoms. Use the Phantom Type
field to indicate that an item is a phantom.
• Build a formula for each phantom. The method for building a formula that
generates a phantom is the same method used to build a formula for a regular
batch. The formula ingredient must be defined as a phantom

Phantoms You Make

Use a basic bread dough for a number of kinds of bread. You do not sell it or keep it in
inventory, however you need to track its ingredients. Your formulas for bread contain
#BASICBREAD plus whatever other ingredients are needed to turn plain white bread
into other 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 up or down by input or by output
Following are the Contribute to Yield types available in Product Development:
• Yes indicates that an ingredient contributes to yield.
• No indicates that an ingredient does not contribute to yield.

Scale Type Definitions

The quantities of items which are fixed scale are not altered when a formula is scaled.
For example, if a formula has a fixed scale ingredient with a quantity of 10 kg and the formula is scaled by a factor
of two, then the quantity remains fixed at 10 kg.

115:120 ‫لما عمل‬Scale by 2

‫ من المواد الخام‬120 ‫ من المنتج النهائي بتحتاج‬115 ‫بمعنى كل‬
Mixed Type Scaling: Fixed and Proportional With Yield Contribution
Mixed Type Scaling: Proportional With Yield Contribution and Fixed Without Yield Contribution

Understanding Integer Scaling ‫قيمه ال يمكن ان تتجزأ‬

Some material in process industries is picked from inventory in eaches, such as a 30 pound bag of defoamant or a
box of antistatic sheets. If an item is issued in 30 pound bags, then it is supplied in full bags and managed on the
production floor appropriately. If the UOM used in the formula is the bag, then you must scale in whole
integer increments. If you want to express the ingredient in pounds, then integer scaling is not sufficient. You
need a way to specify that the ingredient must only be scaled in multiples of 30 pounds.
When materials are scaled by a multiple, a scaling direction value must be specified so that the scaled quantity is
rounded properly. Scaling by a multiple results in ingredient s being rounded up or down to the next whole
multiple specified for the item in the formula. It is possible that the formula ingredient is not scaled as a result of
not meeting the criteria to round up or down. Rounding Variance is required for integer sca ling. If you do not use
rounding variance, then scaling type defaults to proportional scaling.
 Decision Even 25 or 50
Scale percent 1.6  Required Qty. = 25*1.6 = 40

Low 25 Req. 40 Up 50
Variance 30%of Req. Qty. = 12 KG Direction Down

Variance between 25-40=15 > 12

Variance between (40-50) = 10 and regarding there is Up Direction So Scaled Qty. Will Be
40
 Disabling the Scaling of a Previously Scaled Formula
This advice applies to the Formula Details window.
If you 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 type for
all material lines to fixed. The minimum, maximum, and standard quantities for any existing
validity rules will be changed to the product quantity in the formula.

Copying a Formula
Use the Copy Formula window to copy a preexisting formula into another organization.
You can assign a new formula name and version to the copied formula. The
organization must have access to the items defined in the formula. Use the copy
formula function to create customized formulas for use in general, site, master, and
control recipe type

Item Conversion to GMD YIELD TYPE does not exist upon scaling batch with
fixed ingredient. (Doc ID 1369756.1)
Upon attempting to scale a batch, error displays: Item Conversion to GMD YIELD TYPE does not exist for the
item/items in the Recipe/Batch. Cannot scale/create batch.
Why is this happening only when a fixed, non-contributing to yield item exists in the batch?


Per design, if there are any items in the formula/batch with a fixed scale type, you are then required to have
item conversions exist for ALL the other scalable items to parameter YIELD UOM which is set in Production
Development Security Manager>Organization Parameters under the Formula tab

Calculating Formula Product Quantities:

Formula Product Quantity = [(Sum of Contributing Ingredients Quantities)
– (Sum of Byproduct Quantities)] * [(Percentage Entered for Product) /100]
5-Process Engineer Res.

Operations are depicted hierarchically in the following diagram that shows the:
• Routing composed of a series of Operations organized in Steps.
• Operations composed of Activities containing Resources.
• Formula composed of Ingredient, Product, and possibly Byproduct.
• Recipe linking the Routing and Formula together with Processing Instructions.
To Create Activities and Resources and Operations Which Used at Routing

A-Create Activity
Open Process Engineer Res SetupActivities
Create Resources
Define labor and machine

- Process Operations:‫النشاطات اللى بعملهاعشان اخلص مرحله معينه‬ ‫مجموعه‬

Set of activities that have to be completed for a predetermined step in a production batch.
Resource requirements that are needed to perform these activities are usually specified. You build
operations from activities that require resources
The Process Operation Details Activities window links operations to activities.
Create Operations Which Contain Activity and Resources

Add activity at operation and at Activity factor add no. of time you do this Act ivity
Save an operation that contains activities with no associated resources if the operation
status is New. Status cannot be changed to Approved for Laboratory Use or to
Approved for General Use until all activities have resources associated to them.

Add Resource to Operation

Select Resource and quantity Process per Hour
Here it means
To identify No of Resource from Count

Worker Produce 10,000 SUP per hour

 Create Also Another operation

Define Process Quantity UOM “Important to Calc hours based on Produced Qty”
Here I defined it With KG

Another Process Can be Defined by

Save Operations

6- Create Routing
Operation Sequence to Produce Aspecific item
Displaying Fixed Process Loss
Displaying Theoretical Process Loss
Theoretical Process Loss can vary depending on the routing or the individual quantity
being processed by a routing. This loss is defined at the routing level and is based on a
minimum and maximum range of quantities.
The Theoretical Process Loss window enables you to enter the hypothetical percent loss
expected for a range of material processed during a specified routing. For example, if
you mix a quantity of material up to 100 pounds, then the predicted loss might be 1.50
percent, or up to 1.5 pounds. However, if you mixed a quantity between 100 and 500
pounds, then you might predict a loss of 1.75 percent theoretical process loss, or up to
8.75 pounds lost. The loss could be attributed to equipment, evaporation, or any other
aspect of the routing that detracts from the delivery of the full quantity of material
added.

Entering Routing Step Dependencies

Use the Routing Step Dependencies window to create and modify routing step interrelationships. Step dependencies
are those relationships between routing steps that establish whether a specific step can or cannot start until another
step is completed Routing step dependencies reduce the routing development time by establishing a default sequence
for operation steps during a production run. Step dependencies are implemented at the routing maintenance level to
enable automatic step quantity calculation in recipes.
You can define new dependencies or delete the unneeded ones. For example, if step 10
is BAKING and step 20 is the COOLING step, then step 10 must be completed before
step 20 can begin. By this definition, step 20 is dependent on the completion of step 10.
Step dependencies are used to calculate planned start times however, they can be
overridden. Avoid defining circular references, for example Step 10 is less than Step 20
is less than Step 10.

Understanding Routing Step Dependency Selections

Step Dependencies are definable as:
 • Finish-to-start with no offset, to indicate a process step begins immediately after the completion of its preceding
step. For example, a consecutive addition of ingredients is required without interruption.
• Finish-to-start with positive offset, to indicate a process step begins a specified period of time after the completion
of its preceding step. For example, time is required to rest material before the addition of another ingredient.
• Finish-to-start with negative offset, to indicate a process step begins a specified period of time before the
completion of its preceding step. For example, a production device needs to be activated before the addition of the
next ingredient.

Start-to-start with no offset, to indicate a process step begins at the same time as the step it depends on. For example,
there is a need for simultaneous addition of ingredients without interruption.
• Start-to-start with positive offset, to indicate a process step begins a specified time after the beginning of its preceding
step. This is similar to finish-to-start with negative offset, but by specifying that the dependency is start -to-start, you can
ensure the positive offset is maintained if the previous dependent step finishes early.

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
 7- Create Recipe
Recipes standardize the structure of all information that describes production of one or more products.
 To provide the greatest flexibility to process manufacturers, formulas and routings are built independently. They
are linked using a Recipe that has validity rules”‫”قواعد الصالحيه‬. Different formulas can use the same routing, or one
formula can be associated to several different routings.
 A recipe can be created in one inventory organization and then copied, modified and maintained by another
inventory organization.

Recipe ‫الخلطه هتكون عباره عن اضافه‬

‫ اللى هستخدمها‬Routing ‫ وال‬formula ‫ال‬

Recipe Details window:

* Recipe Organization Details

• Recipe Validity Rules
• Recipe Step/Material Association :

Recipe Step/Material Association to display all items from the recipe's formula and associate them with specific routing
steps

Validity Rules:

Make Sure to Check Validity Rules

Validity Affect Planning Incase Formula not Scaled (Std,Min,Max) will be Not Editable so FOQ have to equal Standard
If Formula Scaled Will be Editable (Standard : Batch Size, Min , Max have to be greater than Biggest Planned Order )

- Enter the UOM as unit of measure for the standard quantity. Required.
- Enter the Min Qty as the minimum quantity of material allowable by the validity rule. Required.
- Enter the Max Qty as the maximum quantity of material allowable by the validity rule. Required.

Enter the Preference number for the validity rule. When more than one formula can be used to produce the same product, the P reference field is used to
show the validity rule that must be used first, second, third, and so forth. Preference defaults to 1. Required.

Always Make Sure to Change Status to Approve for General Use

Action  Change Status

Then Save

Understanding Step Quantity Calculations:

Entering Recipe:
- Enter Recipe Name, associate by Formula, Routing
-The output Quantity displays the sum of the product quantities entered in the formula. UOM is the unit of measure for
the formula associated with this recipe.
Enter Recipe Type as:

- Select Contiguous if routings in this recipe must be run in 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.
-Enter the Planned Process Loss as the loss of process material observed during production of a batch using the recipe. If a
value is not entered in this field, then it defaults to the value entered for Theoretical Process Loss.

Displaying the Recipe Step/Material Association:

Use the Recipe Step/Material Association window to display all items from the recipe formula and associate these items
with specific routing steps.
Which mean this Material consume at this Process
PROCESS EXECUTION
OPM Process Execution parameters  Using “Production Supervisor”

From It Create Bach and control batches, Simulator and Setup Defaults for Production Process

Execution Parameter:

SetupParameter
To add (Select Process Organization)

1- Batch Setup Tab

- Display Unconsumed/Unyielded Material to view the unconsumed ingredients and unyielded products when a batch is
complete.
- Allow Material Deletion “At batch status pending”

2- Create Batch

- Check Material shortage or not “inventory organization level ”

- Select Copy Formula Text to copy text from the formula header and details to the batch header and details during the
batch creation process.

Allow High Level Reservation  not preferred to be selected to avoid Reservation before Release Work Order “Batch”
Select Create Move Order to create move orders during batch creation for the ingredients that do not have sufficient
inventory in the supply sub-inventory//+// In-Case using WIP Sub-inventory for transfer material to” ‫وجود مخزن وسيط للمواد‬
”‫الخام‬

Auto Detail Batch: Create Reservation / Release Batch /Create and Release Batch
3- Document Numbering:

4-Inventory Transaction Tab

At this case did not specify Specific Supply Sub-inventory, so it will reserve from any sub-inventory Contain Material

Else Could I set specific supply Sub-inventory WIP and Materials Moved from RM and PACK to WIP then consume to
Batch

- Select Auto-consume From Supply Sub-inventory Only to consume ingredients automatically only from the supply sub -
inventory.
- Select On-hand Sub-inventories/Locators Only to display only those sub-inventories and locators with on-hand
inventory.
To Select Default Supply and Completion Sub inventories for Process Org
+Setting Up Make to Order Rules+
The Make to Order Rules window enables you to define rules for creation of Production, supply in response to a sales
order through a batch or FPO.

-Production Supply  Based on Sales Order What’s the Reflect on production (Create Batch or Planned Order)

-Select Check Availability if you want the application to check for on-hand inventory before creating a batch. if you do
not -select the check box, then a batch is created for the order quantity irrespective of the on -hand quantity
Select the Firm Indicator to prevent the Advanced Planning and Scheduling (APS) engine to reschedule the batch. This
is not enabled for firm planned orders

Make Sure to Set Correct Ship to Site

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 :Workflow Administrator event manager.

3. Make sure that following setup points are achieved for the product item to be ordered through
sales orders:
It is an inventory item
It is OE Transactable
It is Process Execution Enabled

Before Running

Make Sure to Set Even Doc (Batch Numbering or FPO) to Be Automatic not Manual
Then From Production Supervisor Run Request : “Process Manufacturing Make to Order”

Parameters:

Org Unit

Order No, Customer, Item, Warehouse

TO check Request Result you have to open “View Log” to show Created Batch
Batch 10 has been created

Check Created Batch

Planned Orders:
Firm Planned Orders This topic also discusses how to convert the firm planned order to a batch
Firm Planned Orders are designed for medium and long range production planning.

Creating a Firm Planned Order

You can Create Planned Order from
1-From ASCP Planner workbench
2-Create Batch/firm Planned Order application

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 Set profile item Validation Organization”

Finding a Firm Planned Order

You Can Find Planned Order by status or Document No. or Dates

Status Exists are :

You can edit text, convert the firm planned order to a batch, cancel the order, reroute or reschedule, and scale the firm
planned order.
 To convert to Batch
Tools  Convert to Batch

To Cancel or Reschedule or Reroute

In case there is Shortage at sub-inventory Level will be shown while creating Batch
Batch Created by No.2

Batch Creation
Inventory Structure at OPM

Inventory Organization
Inventory Organization is a plant where the batches are produced or an organization that holds the inventory at specified
locations. Offsite warehouses and distribution centers are also designated as inventory organizations. For example: Plant
P1, Offsite Warehouse W1, Distribution Center D1.
Subinventory is a subdivision of an inventory organization representing either a physical area or a logical grouping of
items, such as a storeroom or damaged inventory.
Inventory balances are tracked here. Reservations can be placed against inventory at this level. Items can be restricted to
certain subinventories. A subinventory can also be a division of a warehouse that holds inventory wi th similar planning
and reservation characteristics. For example, staging area, manufacturing area, and distribution center.
Supply Subinventory is the subinventory from which the items required for batch production are consumed It can be the
shop floor or a staging location.

Process loss is the material lost or is unrecoverable in a production step, due to factors such as evaporation or
changeovers in production processes. Lost materials need to be planned for to achieve the targeted process quantity for
steps. The loss can vary depending on the material being processed. Therefore, a production loss factor can be defined at
the routing level and this loss must be reflected in both pla nning for and production of ingredients associated with a
particular step. Oracle Process Manufacturing Product Development enables the entry of process loss factors to facilitate
better material planning.

There is 2 type for Material Loss “‫”تاثيرهم بيكون واضح ف التخطيط‬

1- At Formula Level  Scrap Percentage “ ‫” احتماليه وجود نسبه تالفه من الماده الخام –عبوات تالفه‬
2- At Routing Level  Loss While Processing

At Routing Level:
‫‪Theoretical Process Loss:‬‬
‫العمليه نفسها بتهدر معايا قد ايه من المواد الخام اللى بتتصنع فيها‬
Batch Status:
Actions menu:
• From Pending to Work in Process, select Release.
• From Work in Process to Pending, select Unreleased.
• From Pending or Work in Process to Completed, select Complete.
• From Completed to Work in Process, select Revert to WIP.
• From Completed to Closed, select Close.
• From Closed to Completed, select Reopen.
• Select Terminate to terminate a WIP batch.
• Select Cancel to cancel the batch or Firm Planned Order.
Change batch step status on the Batch Steps window. “Relation between Batch Status and Step Status”
* Pending batches can only have batch steps with a status of Pending
* Work in Process can have “Pending, WIP, and Completed”
* Completed batches can have batch steps with a status of Completed or Closed.
* Closed batches can only have batch steps with a status of Closed

Terminating a batch cancels any remaining pending steps.

Process Order
Create Document  Work Order Manual Generation

Production SupervisorCreate Document

Then Ok  if there is any Shortage  Shortage Form Will Appear with Item contain Shortage

Press Ok to Create Doc

If there is more the Approve for General use Recipes you have to Select Only One Which used at processing batch

Substituting Items During Batch Creation:

At creating Batch in case Sub item Exist  OPM automatically provides the Item Substitution for Batches concurrent program to
update the batch and replace the original item with the substitute item
While Pending batch and Sub item Created  not updated automatically it need to Run Item Substitution for Batches concurrent

To update sub item with original one

The Validate Plan Dates parameter validates the planned start date and planned completion date against the validity rule
dates used for the batch. Dates cannot be outside the date range defined on the validity rule.
Rerouting a Batch:

Reservation:
1-Check Shortage on Inv. Level and Org Level

Sub-inventory Level

Org Level

No Shortage at org Level ( means there is available on hand at another Sub-inventory other than Supply Sub-inventory

Add On hand for Material and Make Sure to add Cost for items and Transfer needed Qty . to Process MFG
Pending Lot:

To Create Pending Lot for Product

Enter Product Tab(Select Pending Lot

If you Save and Check Lots at inventory

 without Origination Date only Lot
Created for item with Default status
and no Expiry Date assigned for
pending Lot

Reservation

High Level Reservation:

Soft Reservation without hard commit per inventory, Location, Lot “Not Recommended”
Reserved Qty. Change from Planned to Reserved

Detail Level Reservation “Recommended”

Hard Commit Inventory with Location and Lot
In case we using and not available on-hand on it, after Auto Batch Detail no Reservation exist

So we have First

Picking:to Create Move order from material sub to WIP

Click On Requirement

Select Needed Batch to pick material for Reservation then Pick Material

Move Order Created by required Material

Open Inventory Res.
Move Order  Transact Move Order

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
Create New Picking Rule and Assign it to Your Organization

At Assignment
Then at Organization Parameters:

Open Production supervisor Res.:

Open Inventory Move order  Transact Move Order

To adjust allocated Lots

View /update allocation

Select Lot/ Serial to adjust Lot

Then Transact
If I using Picking  Picked Quantity Will be Reserved Automatic

To Check On-hand at all Levels:

Select Line Material Summary

Mass Batch Transactions:
To manage Transaction on group of Batches at the same Time
Select Batches and then Select Needed Action
Batch Steps:
Release Type for Step

Can Check from (Other) Tab

Release Type (Automatic)  means by Change Batch Status Automatically Step Status Changed

From Activities we can assign Actual labor and Machine hours (After Complete Batch)
Release Batch
To change Batch Status from Pending to WIP by Release it
If Material Release Type “Automatic” Will Issued Automatically by Release Batch, if “Manual” have to Transact Material
after Release by Perform WIP ISSUE Transaction
Batch Status Changed to WIP and Transaction Material button Active to Perform Transactions
After Transact Material Manual by WIP issue
Material Reserved Qty. converted to Actual Qty.
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Material Transactions:
Transaction dates do not update if you change the:

• Actual start date after releasing a batch.

• Actual completion date after completing the batch.

• Ingredients:
• WIP Issue: Issues ingredients from inventory to batches to fulfill material requirements. If you issue lot -controlled
ingredients, then identify the lot numbers to issue.
• WIP Return: Returns ingredients from batches to inventory. For example, when you unreleased a batch it does not
consume the ingredients and returns them to the inventory. WIP Returns reverse WIP Issues.
• Products:

• WIP Completion: Issues the products produced from the batches to the inventory.
• WIP Return: Returns the products from inventory to batches. For example, if you accidentally complete a batch and
revert back to WIP, then the inventory returns the products.

To view move orders:

To show Move order no used at picking material from Raw sub to WIP
Material Summary  To Check Material On-hand

View Material Transactions

To show transaction history for Batch

To Create WIP Return

Open Material Transaction

Create WIP Return Transaction

Targeted Qty. = 8 , Transacted Qty. =7.9 , Exception=remaining Qty.=0.1

Then Transact

Check Material Transaction now

To Correct Transaction use
After Correction:

The Material Exceptions window:

Window Show Automatically when:
1- Release a batch and any ingredients with a consumption type of Automatic and are not fully transacted.
2- Use incremental backflushing and the quantities that are backflushed and are not fully transacted.
3- Complete a batch and have not transacted any of the ingredients, products, or byproducts in the batch.

While Batch Completion and there is Remaining Qty. at Exception Qty.  Exception form will be shown

Material Exception Form Will appear including unconsumed Material and not Completed FG as below

Can from it Perform Wip issue for Material and product completion
Entering Pending Product Lots:
For Product and byproduct item, I can create pending lot for upcoming Batch

From Batch Detail Open Product tab

Generate Lot and Allocated Produced qty. for this Lot
Batch Production
(A) Release Batch :

*Create Batch  from Action Release

Release Convert Batch Status from “Pending” no
transaction can performed on it to “WIP” Batch Ready for
transactions
*Enter Actual start Date for Batch

The application checks for the validity of the batch validity rule, and advises you, if the actual start date
entered in the dialogue is outside the validity rule date range. The application checks for ingredient
reservations to create transactions. If inventory shortages exist, then those ingredients are reported as
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 **

Reserved,Picked,Release,Completed ,canceled but not

transacted
** Batches at WIP Status **
Transactable

If manual transaction for ingredients and product

Then after convert Batch to WIP
Transact Materials
To Add Actual hours for Labor and machine
Current Activities Per Operation

Estimated time for Resources

Enter Actual hours per Resource
Complete Batch
From Action  Complete

Require to Enter Complete Date for Batch

And Will Open Exception Form for unconsumed material
or un-yield products
Exception Form
Unconsumed material Exist

Steps status will updated while it’s automatic

Revert to WIP
If yield is automatic will Reverted by Revert to WIP
From ActionRevert to WIP

Closing a Batch
Batch after Close

Can Reopen Batch from Action Reopen Batch

 (B) Unreleasing a Batch
Once a batch is released, you can to revert its status from Released to Pending. Completed transactions are reversed,
actual values are reset to zero, and inventory is updated
“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

Define consume type and yield type by incremental
‫ للمنتج النهائي بيتم استهالك الكميات‬Complete ‫من خالل الطريقه دى لما بعمل‬
‫المناسبه للكميه المنتجه من المواد الخام‬
Incremental backflushing lets you record production output or yield incrementally as it occurs prior to batch
completion, the application calculates the ingredient usage by backflushing the ingredients based on product yield and
WIP planned quantities.
- Incremental backflushing can only be performed on batches with a status of WIP or Completed.
- Items must have a consumption type of Incremental to be backflushed by incremental backflushing.

Assign yield type as Incremental

You will be able to do incremental backflush only if batch status
is WIP or completed
Material Exception Window will be shown
Product at Batch after incremental backflush

Material at Batch

product is not reserved. Each time a 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 associated with the product and byproduct lines set for automatic yield have a Pending status
When you complete a batch, the Material Exceptions window displays the remaining reservations and pending
product lots. If you select the Display unconsumed/Unyielded Material parameter, then the
unconsumed/unyielded materialsb also display.

“All Transaction has been completed”

OPM Financial
Cost Methods Used at OPM (Standard, Actual, Lot Cost)

Defining Costs:
Can Define Cost by Multiple Level

1-item

2-inventory Org
3-Cost Calendar and Period

4-Multiple Cost Types (previously referred to as Cost Methods)

5-Cost Component

The unit cost of an item is usually broken dow n into several buckets that are attributed to various sources that form the basis of the cost

(‫)مكونات التكلفه او اساس التكلفه‬

Cost Component Classes identify individual buckets or component costs that make up the total cost, for example, direct material costs,
freight costs, labor costs, and production or conversion costs
The cost component classes are classified into 5 different elements or usages : Material, Resource, Overhead, Expense Allocation, and
Standard Cost Adjustment types
Analysis Code
component class can be further broken down using cost analysis codes for more granular tracking of cost

Allocating General Ledger expense is a method by which you can distribute the indirect expenses of manufacturing (such as
administrative and general expenses) to item costs
The balances in the expense accounts are distributed to item(s) based on either fixed percentages or dynamically derived usin g other
General Ledger account balances

Monitoring Costs
OPM Cost Management provides several reports and inquiries to monitor and analyze costs:
• Item Cost report
• Allocation report
• Sub-ledger reports
• Lot Cost History report
Simulating Costs
OPM Cost Management provides the following simulations, and lets you establish
"what if" scenarios:

Actual Costs of items are developed using the actual business transactions. The product
costs are not based on the formula, routing and recipe details but rather based on actual
consumptions of materials and resource usage recorded in the production batches

Expense Allocations
Overheads
Expenses accrued in General Ledger can be allocated to specific items as indirect
overhead costs.
You can assign and apply overhead costs to either raw materials or finished goods . ·1 he
overhead cost calculation for actual cost rollups is identical to that used for standard
cost rollups

Setup OPM Financial:

1- Setup Cost Type

OPM financial Setup Cost Types
Able to Create More than one cost type as (Actual, Standard, and Lot-Cost)
While Using Actual
You have to Select Way to Calculate Material and FG Cost
Then Save

2- Setup Cost Calendar

SetupCost calendar
The cos ting calendar i s completely s eparate from the fiscal calendar and the periods
Therein. Cos t Calendars s upport multiple l egal entities a nd cost type .
Add Calendar Name and Description and Start Date then Save
Then from Assignments
Add L.E and Created Cost Type

Then Save

Period Status to open Targeted Costing Period

 To Close Period  From Action then  Close Period

3- Defining Component Groups:

Component groups lets you collect specific material and or resource component costs for category groupings (for example,
material costs and resource costs)

4- Cost Component Class

Considered as Lower Level of Cost Component to be more analytical

In a particular formula, you have two ingredients: one is a dry raw material (assigned a component class code called and the
DRYMAT other is a solution (assigned component class SOLMATL). When you view the product costs, the Item Cost
window shows DRYMAT and SOLMAT as the cost components, each with its respective cost
5- Defining Cost Analysis Codes
‫ انواع على التكلفه اقسم اقدر‬..‫مباشره غير او مباشره تكلفه كانت سواء‬
Cost component class can be further broken down using cost analysis codes for more granular tracking of costs.
As Material
6- Defining Costing Organization Associations
OPM maintains separate item costs for each inventory organization. However, you can have a situation in which multiple
inventory organizations transact the item, but the item costs in all of those organizations are the same. In such cases, OPM
lets you create a costing organization and share it with other inventory organizations .
OPM lets you associate a single costing organization with multiple inventory organizations through costing organization
Associations

7- Defining Fiscal Policies

Select Legal Entity and Ledger & currency than add Valuation Method

Assign Valuation Method

 Event Fiscal Policy

8- Define percentage overhead codes

To add percentage even for Material item or for FG item
Applied to Item and added to itself (that is, Direct or Production)
Applied to Ingredient but added to Product (that is, Consumption)
9- Define Resource Cost
OPM financial(Resource Cost

10-Defining Fixed Overheads

Use the Fixed Overheads window to set up and maintain overheads. A overhead is acost associated with a
resource other than the resource usage assigned in the routing.
Assume you need a laborer to clean MIXERl after each use. To account for the cost of cleanup, instead of adding
another component cost to each item that uses MIXERl, you can assign a overhead to the items being produced
by that laborer on MIXERl. The overhead assignment would be the time it takes the laborer to clean MIXERl
multiplied by the cost per hour for the laborer. 1n addition, you can add other costs into the overhead (for such
things as cleaning agents).

- Enter the Hem code for the product or intermediate to which this overhead is
assigned. For example, if the product Blue Paint uses MIXERl as a resource, and you assign a overhead for
cleanup of MIXERl to the process for making Blue Paint, then enter the item code for blue paint.
- Enter the number of this resource used in the production of the item in Resource Count. For example, if it takes one
laborer to cleanup MIXER1 after each use, thenenter 1 (laborer). lbis number is multiplied by the Resource Usage
to calculate the total resource usage

Using Actual Costing

Actual costs cannot be entered manually using the Cost Details window. To enter costs
for the first period for Actual Costs, use the Item Cost API to load the costs

Does actual cost support invoice override of receipts?

Yes. Actual cost uses the invoice price, if available, and the invoice price is preferred
over the PO price in cost calculations

Understanding Actual Costing

OPM captures the actual costs from business transactions. Costs of raw materials are
captured based on the raw material purchase order receipts and or invoices. Costs of
products are captured based on the actual quantities of the raw materials consumed
and the resource usage or conversion cost recorded in the production batch

Overhead Costs

Overhead Unit Cost is calculated by dividing the Item Quantity into the sum of --
Overhead Usage, multiplied by Overhead Quantity, multiplied by Resource Cost, as
shown in the following illustration.

Expense Allocations
You can take an expense amount and allocate it through to multiple raw materials or
products on a percentage basis. You can perform any last minute adjustments to
allocations prior to Actual Cost calculations.
Ensure that expenses are allocated in the correct period and that batches are completed
and closed in the same period.
Another alternative is to enter the account balances into OPM manually using Cost
Allocation Maintenance.
The Average Cost Adjustment type lets you enter a quantity and a cost. This adjustment
simulates a transaction that happened outside the OPM Actual Cost process
Production Batch Costs
Actual ingredient usage from Production is captured for closed batches. Ingredient cost
is calculated by the actual cost raw material method for your cost method.
Actual resource usage, count, and throughput are captured in the OPM Process
Execution application. Resource rate or nominal cost is entered in costing.
Batch unit cost is calculated by dividing -- the sum of ingredient quantity, multiplied by
the ingredient actual cost, plus the sum of resource use multiplied resource rate -- by
the batch item quantity, as shown in the following illustration:

Production Batches
In Process Execution, when a lab batch is created you can specify whether to update
inventory by checking the Update Inventory box. If you do not check this box, then the
work-in-process inventory organization is set to null. In this case, no inventory
transactions are created and the Actual Cost process ignores these batches in cost
calculation. As a result, the variances are not calculated.

Product Transfer Example 1: Product transfer from production inventory organization to a distribution inventory
organization
In this example, the cost for the product PROD-A is as follows:
Production Inventory Organization: WHS1
• Cost: $5.00 per LB
Inventory Balance: 200 LB
Distribution Inventory Organization: WHS2
• Cost: $6.00 per LB
Inventory Balance: 500 LB
Transfer 100 pounds of product PROD-A from the production inventory organization
WHS1 to distribution inventory organization WHS2. The inventory transfer originates
from WHS1, there is no impact on the cost in that inventory organization. Cost is
impacted at WHS2 as shown:
• Cost at WHS2 = (Previous Balance * Previous Cost) + (Transfer Qty * Unit Cost at
WHS1) / (Previous Balance + Transfer Qty)
= ((500 * $6) + (100 * $5)) / (500 + 100) = (3000 + 500)/600 = $5.8333 per LB

Setting Up Expense Allocations