Cost Accounting Solutions for Oracle Applications Accounting Oracle... · 2019-03-11 · Business...

Helping people use Oracle Applications since 1990

Copyright ©2019 Douglas Volz Consulting, Inc.+1 510 755-7050

Cost Accounting Solutionsfor Oracle Applications

Douglas Volz

Douglas Volz [email protected]

(510) 755-7050



Do You or Your Staff Feel Like This at Month-End?

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Doug Volz has Solutions for You

Professional Summary

35+ years industry, design and consulting and “firefighting” experience

Specializing in Cost Management business solutions

Recognized by Industry Peers with numerous OAUG awards:

• 2014 OAUG Member of the Year

• 2018 Presenter of the Year and 2018 Special Interest Group of the Year

Co-designed Oracle Cost Management at Oracle

Implementations with international consulting firms, in over ten countries

Led the Oracle Applications User Group for Cost Management since 2007

Presenter at Collaborate (OAUG), OpenWorld and UKOUG since 1996

Prior industry positions for General and Cost Accounting management

Business Solutions for Cost Accounting

• Change cost methods

• Inventory reconciliation

• Profit in inventory

• Intercompany

• A/P accrual reconciliation

• Fix system account setups

• Multi-org cost accounting reports

• Product line & margin analysis

• Item costing, cost rollup and update

• Cost accounting training

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OAUG2018 Presenter of the Year2014 Member of the Year



Solutions You Can Use – Over 30 Presentations!─ http://oaug.org/education-events/cpd─ http://www.volzconsulting.com/resources.html

A/P Accruals: OAUG/Collaborate & UKOUG1996/2007/2008: (R11i) How to Setup, Use and Balance Your A/P Accrual Accounts 2011: A/P Accruals for Release 12 (OAUG Cost Management SIG)

Cost Management & SLA: OAUG/Collaborate & UKOUG2009: Cost Accounting As You Want It ─ EBS R12 Cost Accounting with SLA2013: Subledger Accounting for Discrete & EAM Cost Accounting: Product Line and Expense Accounting Made Easy 2014: How to Create Shipping Burdens for Oracle Cost Management, in Spite of Subledger Accounting

Changing Cost Methods: OAUG/Collaborate2016: Who Said Changing Cost Methods With Discrete Costing Can't be Done?

Discrete & Process Cost Accounting Integration: OAUG/Collaborate2015: We Can Create Combined Oracle Cost Accounting Reports for Both Discrete and Process MFG!

Inventory Reconciliation: OAUG/Collaborate & UKOUG2010: Can We Actually Reconcile Project MFG to Inventory, WIP, Projects & G/L? What Was I Thinking?2011: 60 Inventory Orgs? 6 Ledgers? No Worries, Reconcile Your Inventory With Ease!2014: Reconcile Your Inventory to G/L Balances With Ease, From 1 to 1,000 Inventory Organizations!2017: Managing Oracle EBS Reconciliation in Manufacturing and Distribution Organizations

Period Close: OAUG/Collaborate & UKOUG2016: How to Manage the Inventory and Manufacturing Period Close and Remain Sane…

Profit in Inventory Solutions: OAUG/Collaborate2010: Does Rel. 12 Solve Global Inter-Company Issues for Multiple Ledgers, Profit in Inventory and COGS?2018: INTL: Cloud and EBS Costing, You Can Track & Eliminate Profit in Inventory (And Still Have a Life!)

Transaction Interfaces for Period Close: OAUG/Collaborate2012: Egads! How in the Dickens Do I Handle Those Month-End Interfaces? (And Why Can’t I Close My Books)

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Sample Client List

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Onsite Oracle Cost Training

1: Cost Management Introduction

2: General Oracle Navigation and Training

3: Costing Structural Overview

4: Costing Security

5: Item Costing Setup

6: Buy Item Costing for Std or Avg Costing

7: More4Apps Item Cost Wizard

8: Cost Rollup And Item Cost Review

9: Update Standard or Average Costs

10: Copying and Editing Costs

11: Purging Costs, Cost Rollups and Cost Update History

12: Cost Accounting Transactions Setup

13: COGS Accounting Solutions

14: Intercompany Transactions Setup

15: Receiving Accounting Transactions

16: Inventory (Std or Avg) Cost Accounting Transactions17: Intercompany Cost Accounting Transactions18: COGS Recognition and Margin Analysis

19: Standard or Average Cost Variances20: View Receiving, Inventory and WIP

Accounting Transactions21: How to Setup, Transact and Use Outside Processing 22: Analyze and Close WIP Jobs

23: Review Pending and Uncosted Transactions

24: Create Accounting, Period Open & Close

25: Inventory Reconciliation and Reporting

26: ICP/PII Tracking and Reporting

27: A/P Accruals

28: Custom Reporting29: Cost Accounting Checklists30: Year-End Tasks31: Appendix

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Why Not?

Originally designed to be run for a single warehouse

Does not format well into Excel (even for R12!)

Not enough details – still dig out info. transaction by transaction

Not enough summary information

Discrete Costing R12 – can’t use transaction inquiry screens – no SLA information

Process Costing R12 – too few reports, not enough information

Drives down operational efficiency

Unable to eliminate PII/ICP using standard reporting

Common Oracle EBS Reporting Complaints– Can’t Use Standard Reports



Types of ReportsWhat Type of Reports Are Needed?

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Reconciliation Reports

Other Reporting & Analysis

Weekly / Monthly Txn Listings

Investigative Reports

G/L to Inventory Reconciliation

A/P Accrual Reconciliation Reports

Global Inventory Value Reports

Transaction Accounting Summaries

Account Alias Reports

Transaction Accounting by Lot

Global Setup Configuration Reports

Open Internal Orders Reports

Period Open / Close Status Reports

Item Cost Comparison Reports

IPV, PPV, WIP Variance Reports

Margin Analysis Reports



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Typical Report Categories:

Cost Accounting

Item Costs

Inventory Value

Transactions and Variances

Other Reports



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Over 100 Cost Accounting Reports!

The following pages list reports completed for R11i & R12 clients

Many reports work with both Discrete and Process Cost Accounting

Depending on your use of the Oracle Applications some level of tailoring is expected (changes are necessary to these reports)

The SQL code for the following reports is in Production at multiple clients (using various reporting tools)

ICP – Intercompany Profit, also known as PII (Profit in Inventory), is a frequent sore spot with the Oracle Applications. This is the profit recognized between internal customers, profit which must be eliminated at month-end. On the following pages several of these reports help with profit in inventory tracking and elimination challenges.



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Item Cost Reports



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Inventory Value



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Period Open/Close Status & Setup Reports



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Transactions & Variances



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Transactions & Variances (Continued)



Layout Samples for Custom Reports

Multiple Organization Valuation Reports ICP/PII Inventory & Intransit Value Report

Receiving Value Report

Inventory Out-of-Balance Report

Onhand Lot Value Status Report

Multiple Organization Account Distribution Reports Material Account Summary Report

Receiving Account Summary Report

WIP Account Summary Report

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ICP – Intercompany ProfitPII – Profit in Inventory



Custom ICP/PII Inventory & Intransit Value Report

Use this report for the month-end perpetual values and to reconcile overall ICP/PII movement at month-end (ICP – Intercompany Profit)

Sample Custom Multiple Organization ReportsMultiple Organization Inventory Value Reporting

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Sample Custom Multiple Organization ReportsView Receiving Value with More Information

Custom Receiving Value Report

Shows OSP and Inventory in Receiving

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Sample Custom Multiple Organization Reports

Custom Inventory Out-Of-Balance Report Used to find differences between your cumulative accounting entries

and your perpetual balances

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Sample Custom Multiple Organization ReportsOnhand Inventory Value by Lot Number

Custom Onhand Lot Value Report

Shows inventory value with lot numbers. For both Discrete and Process Costing.

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Sample Custom Multiple Organization Reports

Custom Account Distribution Reports Custom Receiving Account Summary Report

Custom Material Account Summary Report

Custom WIP Account Summary Report

Combine all three reports into the All

Transactions Report

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About DougDoug Volz is a Senior Architect and Business Advisor for Oracle EBS projects, specializing in Cost Management and Intercompany processes. He has over 35 years of accumulated experience, including 5 years in Oracle Development (co-designing Oracle Cost Management), 20 years implementing Oracle EBS in multiple countries and 12 years in industry for Cost and Accounting Management positions. His Manufacturing and Cost systems experience covers project management, software design/development, delivery and consulting services, for both Oracle Corporation and multiple international consulting firms. Prior to his systems career, Mr. Volz also held management accounting positions for telecommunications, defense and electronics companies.

In his consulting roles, Doug has served over 100 clients. Many of these were multi-org, multi-currency with global footprints and intercompany accounting requirements. Countries included US, Mexico, UK, Netherlands, Belgium, Taiwan, PRC, Norway, Japan, Italy, Switzerland and Germany.

Doug was recognized as the 2014 OAUG Member of the Year, 2018 Associate Presenter of the Year and 2018 Special Interest Group of the Year. He leads the OAUG Cost Management Special Interest Group (since 2007) and freely gives out valued business advice to his SIG members and to the Oracle community. Doug also presents at OAUG Collaborate, UKOUG and Oracle OpenWorld conferences. In addition he advises and participates on Oracle Customer Advisory Boards and frequently meets with the Oracle Cost Development teams.

Core Expertise

Multi-organization, Multi-currency Global Implementations

Cost Accounting Business Solutions for Discrete & Process Cost Accounting

Intercompany and Profit in Inventory Inventory and A/P Accrual Reconciliation Project Management and Senior Project Advisor Core manufacturing and distribution processes

Cost Management Inventory Bills of Material WIP

Over 30 Published Papers at:

Go to www.volzconsulting/resources.com

A/P Accruals for Release 12 and 11i Change Your Cost Methods Cost Management & Subledger Accounting Costing Tips and Tricks Discrete and Process Costing Integration EAM Costing Inventory Reconciliation Profit in Inventory Solutions Transaction Interfaces for Period Close And many, many more!

Douglas Volz ([email protected])

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Any Questions?

Doug Volz

[email protected]

www. volzconsulting.com

Cost Accounting Solutions for Oracle Applications Accounting Oracle... · 2019-03-11 · Business...

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Transcript of Cost Accounting Solutions for Oracle Applications Accounting Oracle... · 2019-03-11 · Business...