Cost Management Cloud | Workshop Agenda

Day 1 Day 2 Day 3 Day 4

ü Receipt ü Discrete ü Costing of Fulfillment ü Supply Chain Financial

Accounting Manufacturing Costing Flows Orchestration

ü Cost Accounting ü Process Manufacturing ü Landed Cost

Costing Management

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Cost Management Cloud
Manufacturing Costing

Vinit Poddar
Product Management Director
Oracle Development
Safe harbor statement

The following is intended to outline our general product direction. It is intended for information purposes
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Oracle undertakes no duty to update any statement in light of new information or future events.

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Agenda

• Manufacturing Costing Overview

• Discreet Manufacturing Costing
• Process Manufacturing Costing
• Reports
 Overview | Manufacturing Process

Typical Manufacturing Process

Input Process Output

• Purchased • Resource • Finished

Components Consumption Product
(Subassemblies)

Cost Planning features

Estimate standard cost Estimate rates for resource

Calculate rolled-up cost of
for purchased items. usage and overhead
finished product.
absorptions.

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 Overview | Application Process
ü Costing Deep Dive

Transfer and
Define Items Execute Order Generate
Costing

Define Item Create Work Create

Structure* Order Accounting

Create Work Publish Review Work

Definition Standard Cost Order Costs

* Not required for process manufacturing

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 Overview | Cost Estimation

Work Definition Name: Primary Standard Cost Estimation

Select work definitions based on scenario criteria

Version 1
As of Date: 1-Apr-15 Work Definition Criteria Input/Buy item costs Resource and
Production Priority 2 Costing Priority 1 Overhead Rates
Costing Priority 1
As of Date 1-Apr-15
Input Items
Work Definitions

Resources
Pass the
criteria
Work Definition: Alternate

Work Definition: Alternate 1 Cost Rollup

Get Work
Definition

Standard Cost for Sub

Assemblies/ Product

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 Recap | Configuration

InFusion Corporation
InFusion UK Ledger InFusion UK Ledger
InFusion US Ledger
[GBP, Corp COA, Secondary [USD,
[USD, Corp COA, US GAAP] IFRS] Corp COA, US GAAP]

InFusion US1 LE InFusion US2 LE InFusion UK LE

[BSV = 101] [BSV = 102] [BSV = 201]
Primary Cost Secondary Reporting Periodic Cost
Book Cost Book Cost Book Book
InFusion US1 InFusion US2 InFusion UK
Business Unit Business Unit Business Unit

Perpetual Periodic
Standard Cost Actual Cost
Average Cost Average Cost

Item

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Agenda

• Manufacturing Costing Overview

• Discreet Manufacturing Costing
• Process Manufacturing Costing
• Reports
 Discreet Manufacturing Costing | Use Case

Tablet

Assembling Testing Packing

Material

Packing
Mother Board Screen Frame Material
1 Unit 1 Unit 2 Units 1 Unit
Resource

Assembler Machine Tester Packer

1 Hr / Unit 1 Hr / Unit 1 Hrs / Unit 1 Hr / Unit

Overhead
Plant

Electricity
Overhead 9% Material Cost

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 Discreet Manufacturing Costing | Work Order Cost | Standard

Component Cost Resource Overhead WIP Material Issue WIP Resource Charging

Mother Board – Assembler – 1*50 (50) WIP Valuation 40 Dr WIP Valuation 50 Dr

1*40 (40)
Material Inventory 40 Cr Resource Absorption 50 Cr
Overhead –
Budget

Machine – 1*30 (30)

Screen – 1*30 (30) 9% of WIP Valuation 30 Dr WIP Valuation 30 Dr
Tester – 2*15 (30) Material
Frame – 2*10 (20) Inventory 30 Cr Resource Absorption 30 Cr
Packer – 1*25 (25) Cost
Packing – 1*5 (5)
WIP Valuation 20 Dr WIP Valuation 30 Dr
Inventory 20 Cr Resource Absorption 30 Cr
Mother Board – Assembler – 1*50 (50)
1*40 (40) Material WIP Valuation 5 Dr WIP Valuation 12.50 Dr
Actual

Machine – 1*30 (30) Overhead – Inventory 5 Cr Resource Absorption 12.50 Cr

Screen – 1*30 (30)
Tester – 2*15 (30)
9% of
Frame – 2*10 (20) Material WIP Product Completion WIP Job Close (Accounts for any
Packing – 1*5 (5)
Packer – 0.5*25 (12.50) Cost Variance)
Inventory Valuation 95 Dr
WIP Valuation 95 Cr WIP Valuation 12.50 Dr
Estimated Costs: Actual Costs: Efficiency Variance 12.50 Cr
Inventory Valuation 105 Dr
Material = 40 + 30 + 20 + 5 = 95 Material = 40 + 30 + 20 + 5 = 95
WIP Valuation 105 Cr
Labor = 50 + 30 + 25 = 105 Labor = 50 + 30 + 12.50 = 92.50
Inventory Valuation 30 Dr
Machine = 30 Machine = 30 WIP Valuation 30 Cr

Material Overhead = 9% X 95 = Material Overhead = 9% X 95 = Inventory Valuation 8.55 Dr

8.55 8.55 Material O/H Absorption 8.55 Cr

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 Discreet Manufacturing Costing | Work Order Cost | Actual / Average

Resource Overhead WIP Material Issue * WIP Resource Charging

Assembler – 1*50 (50) WIP Valuation 40 Dr WIP Valuation 50 Dr

Material Inventory 40 Cr Resource Absorption 50 Cr
Overhead –
Budget

Machine – 1*30 (30)

9% of WIP Valuation 30 Dr WIP Valuation 30 Dr
Tester – 2*15 (30) Material Inventory 30 Cr Resource Absorption 30 Cr
Packer – 1*25 (25) Cost
WIP Valuation 20 Dr WIP Valuation 30 Dr
Inventory 20 Cr Resource Absorption 30 Cr
Mother Board – Assembler – 1*50 (50)
1*40 (40) Material WIP Valuation 5 Dr WIP Valuation 12.50 Dr
Actual

Machine – 1*30 (30) Overhead – Inventory 5 Cr Resource Absorption 12.50 Cr

Screen – 1*30 (30)
Tester – 2*15 (30)
9% of
Frame – 2*10 (20) Material WIP Product Completion WIP Job Close (Accounts for any
Packing – 1*5 (5) Packer – 0.5*25 (12.50) Cost Variance)
Inventory Valuation 95 Dr
WIP Valuation 95 Cr No Accounting
Estimated Costs: Actual Costs:
Inventory Valuation 92.50 Dr
Material = 40 + 30 + 20 + 5 = 95 Material = 40 + 30 + 20 + 5 = 95 * In case charges like Non recoverable
WIP Valuation 92.50 Cr
tax, Invoice price variance, tax price
Labor = 50 + 30 + 25 = 105 Labor = 50 + 30 + 12.50 = 92.50 variance, overheads are available on
Inventory Valuation 30 Dr
the item cost, the WIP valuation will
Machine = 30 Machine = 30 WIP Valuation 30 Cr
also be loaded with the corresponding
costs.
Material Overhead = 9% X 95 = Material Overhead = 9% X 95 = Inventory Valuation 8.55 Dr
8.55 8.55 Material O/H Absorption 8.55 Cr

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Agenda

• Manufacturing Costing Overview

• Discreet Manufacturing Costing
• Process Manufacturing Costing
• Reports
 Process Manufacturing Costing | Use Case
Raw Sugar

Shredding Purification Evaporation Centrifugalizing Drying & Cooling

Material

Sugar Lime Sulphur

Raw

Cane Stone Di Oxide

9,479 KG
1,185 KG 5 KG

Vacuum
Resource

Crusher Rotary Labor Labor Centrifugal Labor Drier Labor

Labor Filter Pan
Mills

2 Hr/Batch 1 Hr/Batch 4 Hr/Batch 2 Hr/Batch 1 Hr/Batch 1 Hr/Batch 1 Hr/Batch 1 Hr/Batch 2 Hr/Batch 1 Hr/Batch
By-product
Products &

Trash Press Mud Molasses Raw Sugar

47 KG 285 KG 427 KG 1,000 KG

Overhead
Plant

Electricity
Overhead 9% Material Cost

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 Process Manufacturing Costing | Important Links

Process Manufacturing Introduction

Process Manufacturing Overview and Costing – Session 1
Process Manufacturing Overview and Costing – Session 2

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Agenda

• Manufacturing Costing Overview

• Discreet Manufacturing
• Process Manufacturing
• Reports
 Reports | Work Order Costs | Summary

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 Reports | Work Order Costs | Details

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 Reports | Work Order Costs | Variance

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 Reports | WIP Inventory Valuation

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Thank You

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