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  • OPM Costing Fundamentals - Actual

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    Oracle Process Manufacturing allows users to develop and maintain standard, actual, and lot costs using various cost methods. It facilitates valuing material and resource transactions during production and inventory management. Key functions include defining costs by organization, item, cost calendar, cost types, and analysis codes. Actual costs are calculated based on raw material receipt transactions from purchase orders as well as production batch events that issue materials and resources. Accounting integration occurs through purchase order, production, sales, and adjustment journals.

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    OPM Costing Fundamentals_Actual

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    OPM Costing Fundamentals_Actual

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    Oracle Process Manufacturing allows users to develop and maintain standard, actual, and lot costs using various cost methods. It facilitates valuing material and resource transactions during production and inventory management. Key functions include defining costs by organization, item, cost calendar, cost types, and analysis codes. Actual costs are calculated based on raw material receipt transactions from purchase orders as well as production batch events that issue materials and resources. Accounting integration occurs through purchase order, production, sales, and adjustment journals.

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    183 views21 pages

    OPM Costing Fundamentals - Actual

    Uploaded by

    khaled_ghrbia
    Oracle Process Manufacturing allows users to develop and maintain standard, actual, and lot costs using various cost methods. It facilitates valuing material and resource transactions during production and inventory management. Key functions include defining costs by organization, item, cost calendar, cost types, and analysis codes. Actual costs are calculated based on raw material receipt transactions from purchase orders as well as production batch events that issue materials and resources. Accounting integration occurs through purchase order, production, sales, and adjustment journals.

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    of 21

    Oracle Process

    Manufacturing

    Costing Fundamentals
    OPM Costing
    • Develop and Maintain costs using the following cost
    methods:
    – Standard Costs
    – Actual Costs
    – Lot Costs
    • Valuing material and resource transactions in Production
    • Valuing material Transaction in Inventory(Purchasing &
    Inventory Valuation) and Shipping
    • Create journals in OPM Subledger using Oracle
    Subledger Accounting
    • Monitor and simulate costs using reports and inquiries
    Defining Costs
    • OPM Cost Management lets you define costs by:
    – Inventory Organization
    – Item
    – Cost Calendar and Period
    – Cost Types
    – Cost Component Class
    – Analysis Code
    Raw Material Cost
    Costs of raw materials are
    captured based on the raw material
    purchase order receipts and or invoices

    Raw
    Materials
    Actual Cost Calculation
    Actual Cost Calculation

    Item A
    Prior Prior Period Transaction Transaction Current Period
    Period Ending Cost QTY Price Item Cost
    Balance (PO QTY) (PO Price)
    ?
    10 10 10 15 12.5
    ?
    20 ? 12.5 ? 10 12 12.33

    Period Ending Balance 30 ?


    Period Unit Cost 12.33 ?
    Finished Product Cost

    Materials + Resources

    Finished Product

    Expenses
    Formula

    Routing
    Routing

    Operation

    Activity

    Resource Resource Cost


    Actual Cost Adjustment

    • Purchase Order Receipt Event


    • Production Batch Event
    • Sales Event
    • Miscellaneous Issue/Receipt Event
    Accounting Integration

    • Purchase Order Receipt Event


    • Production Batch Event
    • Sales Event
    • Miscellaneous Issue/Receipt Event
    Purchase Order Receipt Event

    Receiving materials into receiving area


    Dr/ Receiving Account (Qty x PO Price)
    Cr/ AP Accrual Account (Qty x PO Price)

    Delivering materials into inventory


    Dr/ Material Account (Qty x PO Price)
    Cr/ Receiving Account (Qty x PO Price)
    Purchase Order Receipt Event

    Registering supplier Invoice


    Dr/ AP Accrual Account (Receiving Qty x Invoice unit price)
    Cr/ Accounts Payable
    Dr/Cr/ Invoice Price Variance (Receiving Qty x Variance between

    the PO and Invoice price)

    Adding Invoice Price Variance to unit cost


    Dr/Cr/ Invoice Price Variance (Receiving Qty x Variance between the
    PO and Invoice price)
    Dr/Cr/ Material Account (Receiving Qty x Variance between the
    PO and Invoice price)
    Purchase Order Receipt Event

    Registering Acquisition Cost Invoice


    Dr/ Accrued Acquisition Cost (Receiving Qty x unit Acquisition Cost)
    Cr/ Accounts Payable

    Adding Acquisition Cost to unit cost


    Dr/ Material Account (Qty x Unit Acquisition Cost)
    Cr/ Accrued Acquisition Cost (Qty x Unit Acquisition Cost)
    Production Batch Event

    Material Issue from W/H to Production


    Dr/ WIP (Actual Unit Cost x Qty)
    Cr/ Raw Material Account (Actual Unit Cost x Qty)

    Issuing resources to production


    Dr/ WIP (Resource Usage Time x Resource Unit Cost)
    Cr/ Resource Control Account (Resource Usage Time x Resource
    Unit Cost)
    Production Batch Event

    Receiving Finished Good From Production


    Dr/ Finished Good Account (Resource and Material Cost)
    Cr/ WIP (Resource and Material Cost)
    Sales Event - Issue

    Ship Material to Customer


    Dr/ Cost Of Good Sold (COGS) Account
    Cr/ Finished Good Account

    Issue invoice of shipped material


    Dr/ Receivables Account (Customer)
    Cr/ Revenue Account (Sales Acc)
    Sales Event - Return

    Receive Material from Customer


    Dr/ Finished Good Account
    Cr/ Cost Of Good Sold (COGS) Account

    Customer Credit Memo


    Dr/ Revenue Account
    Cr/ Receivables Account (Customer)
    Accounting Integration

    Miscellaneous Issue/Receipt Event


    Dr/Cr/ Inventory Account
    Dr/Cr/ Adjustment Account
    Period-End Closing Steps
    Record or Yes Run
    Run Actual Costs
    Verify Preliminary
    Cost Process OK?
    Transactions Cost Update

    Adjust No
    Cost Or

    Run Yes
    Create Draft Journals
    Accounting
    Accounting OK?
    Preprocessor
    No
    Period-End Close

    Close Run Final Run


    Inventory Cost Create Final
    Accounting
    Period Update Accounting
    Preprocessor

    Transfer to
    GL
    Oracle Process
    Manufacturing

    Thank you

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