EDU35A0Y- Oracle Cost Management

8/12/2019 EDU35A0Y- Oracle Cost Management

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Copyright 2005, Oracle. All rights reserved.

Oracle Cost Management

Manufacturing Functional Foundation


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Objectives

After completing this lesson, you should be able to dothe following:

Understand the costing methods supported in

Cost Management Identify the major tables used in Cost Management

Discuss the open interfaces and applicationprogram interfaces for Cost Management


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Agenda

Cost Management Overview

Cost Management Transactions and EntityRelationship Diagrams

Cost Management Open Interfaces andApplication Program Interfaces


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Oracle Cost Management Overview

Production ProfitabilityInventory

Analysis Audit trailItem costs


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Cost Structure

A cost structure is the collection of definitions andmethods used to cost inventory, bills of material, andwork in process. The cost structure is composed of:

Organizations Cost organizations and shared costs

Cost elements

Subelements

Activities Basis types

General ledger accounts


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Cost Rollup and Updates

Cost Rollup

Cost Update

EngineeringInformation


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8/19Copyright 2005, Oracle. All rights reserved.

Standard Cost Actual Cost Variance

Standard Costing



Average Costing

Average Unit Cost for XYZ on February 28, 2005 = $2.40

January 13, 2005

February 02, 2005

February 27, 2005

March 16, 2005

Receipt Date Amount

$10.00

$14.00

$12.00

$11.00

April 08, 2005 $14.00

Quantity

4

6

5

5

6

Receipts for Item XYZ

Average Unit Cost for XYZ on April 09, 2005 = $2.35



FIFO/LIFO Costing

FIFO (First In/First Out)

LIFO (Last in/First Out)



Periodic Costing

Periodic Costing is an option that enables you to valueinventory on a periodic basis. There are three principalobjectives of periodic costing:

To capture actual acquisition costs based onsupplier invoiced amounts plus other directprocurement charges required by nationallegislation or company policy

To capture actual transaction costs using fully

absorbed resource and overhead rates To average inventory costs over a prescribed

period, rather than on a transactional basis



Agenda





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Standard Cost Type

CST_ACTIVITIESBOM_

RESOURCES

CST_COST_ELEMENTS

CST_ITEM_COST_DETAILS

CST_ITEM_COSTS

MTL_SYSTEM_ITEMS_B

CST_COST_TYPES



Average, FIFO, LIFO Cost Types

CST_LAYER_COST_DETAILS

CST_ACTIVITIESBOM_

RESOURCES

CST_COST_ELEMENTS

CST_QUANTITY_LAYERS

CST_ITEM_COSTS

MTL_SYSTEM_ITEMS_B

CST_COST_TYPES



Resource and Overhead Costs

BOM_RESOURCES

MATERIAL OVERHEAD

MATERIALOVERHEAD

RESOURCE/OUTSIDE

PROCESSING

CST_RESOURCE_OVERHEADS

CST_DEPARTMENT_OVERHEADS

BOM_DEPARTMENTS

CST_COST_TYPES

CST_RESOURCE_

COSTS



Agenda







Periodic Cost Open Interface


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Summary

In this lesson, you should have learned how to:

Describe the costing methods supported in CostManagement

Identify the major tables used in Cost Management Discuss the open interfaces and application

program interfaces for Cost Management

EDU35A0Y- Oracle Cost Management

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