Discrete manufacturing costing document

1. Oracle Applications User Group
Discrete MFG SIG – Cost Group
April 27th 2010
Release 11i & 12:
Major Tables & Relationships for Costing, Session I

2. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 2
Background
 Explore the Discrete Cost Applications
 Look behind the forms and reports and see the
underlying tables and data structures
 The goal is to provide a better understanding for how the
Applications work
 Session I focuses on item cost basics; Session II focuses
on Cost Rollup, Update and Mass Edits

3. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 3
Agenda – Session I
 Introduction for the next two sessions
 Session I – Basic Item Costing and Organization Definition
 Session II – Cost Rollup and Cost Transactions
 Costing Overview
 Cost Structure Overview
 Organization Overview
 Cost Setup
 Define Cost Types
 Define Material Sub-elements
 Define Material Overhead Sub-elements
 Define Overheads
 Define Resources
 Define Material Overhead Defaults

4. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 4
Agenda – Session I (continued)
 Item Costing
 Buy Items
 Item Cost Summary Table
 Item Cost Details Table
 Item Cost Views & Inquiries
 Wrap Up – How Did We Do?

5. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 5
Agenda – Session II
 Cost Setup
 Define Resources
 Define Overheads
 Define Departments
 Supply Chain / Sourcing Rules Setup
 Rollup And Item Cost Review
 Rollup and Rollup Cost Review Overview
 Define BOMs and Routings
 Make Item Costing
 Copying, Editing, and Purging Costs
 Copy Costs Between Cost Types and Between Inventory Organizations
 Mass Editing Cost Information
 Mass Editing Item Accounts
 Purging Cost Information
 Update Standard Costs
 Update Standard Costs
 Update Average Costs
 Cost History

6. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 6
Introduction to Session I – Costing Overview

7. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 7
Organization Overview
FG
Subinventory
STORES
Subinventory
MRB
Subinventory
Global
Organization
(Item Master)
Inventory
Organization
Inventory
Location
General Ledger
Operating Unit
The Global Org can be
across OUs
Legal Entity

8. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 8
Item Costing Setup Overview
Cost
Types
Sub-
Elements
Sub-Element
Defaults
Item Costing
Cost Mass
Edits
Cost
Rollup
Org
Setup
Session II

9. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 9
Organization Setup in Cost, HRMS or Inventory
 Cost Mgmt => Setup => Account Assignments => Organization

10. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 10
Organization Setup for Accounting Information
 Click on the “Others” button and you get these choices:

11. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 11
Organization Setup for Accounting Information
 Associate your organization with Ledger, LE and OU

12. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 12
Organization Tables – What Did You Just Use?
 HR_ORGANIZATION_INFORMATION
 Holds basic information for organizations
 Simultaneously holds the LE, OU, Ledger and Inventory ids
 Specify the org_information_context = 'Accounting Information‘
SELECT hoi.organization_id inv_organization_id,
hoi.org_information_id unique_key,
hoi.org_information_context type_of_data,
hoi.org_information1 ledger_id, -- set_of_books_id in R11i
hoi.org_information2 LE_ID,
hoi.org_information3 OU_ID
FROM hr.HR_ORGANIZATION_INFORMATION hoi
WHERE hoi.org_information_context = 'Accounting Information';

13. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 13
Define your Inventory Organization

14. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 14
Define Your Inventory Organization
 MTL_PARAMETERS
 Defines your basic inventory organization controls
• Costing Method
• Valuation accounts (Average Costing), default valuation accounts (Std)
• Purchase price, invoice price variance, inventory A/P accrual accounts
• Negative quantities allowed (yes or no)
• Enabled products: EAM, Project MFG, WMS, Process, etc.
• And many, many more attributes
SELECTorganization_code,
organization_id,
primary_costing_method -- 1 = STD, 2 = AVG costing
FROM inv.MTL_PARAMETERS;

15. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 15
Define your Costing Method

16. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 16
Shipping Network Defaults

17. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 17
Cost Account Defaults

18. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 18
More Organization Tables
 HR_ALL_ORGANIZATION_UNITS
 Holds the names for your different types of organizations
 Here is a combined query to get your inventory org information:
SELECT gl.name “Ledger”,
haou2.name "Operating Unit",
haou.name “Inventory Org”
mp.organization_code "Org Code“
FROM inv.mtl_parameters mp,
hr.hr_organization_information hoi,
hr.hr_all_organization_units haou,
hr.hr_all_organization_units haou2,
gl.gl_ledgers gl
WHERE hoi.org_information_context = 'Accounting Information'
AND hoi.organization_id = mp.organization_id
AND hoi.organization_id = haou.organization_id -- inventory organization name
AND haou2.organization_id = to_number(hoi.org_information3) -- operating unit id
AND gl.ledger_id = to_number(hoi.org_information1) -- ledger_id (R11i set of books)

19. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 19
Organization Views to Help You
 Here are useful organization views
 ORG_ORGANIZATION_DEFINITIONS
 CST_ORGANIZATION_DEFINITIONS
 HR_OPERATING_UNITS_ALL
 For performance on custom reports I advocate storing the following
information in MTL_PARAMETERS using ATTRIBUTE columns:
 OPERATING_UNIT_ID
 LEGAL_ENTITY_ID
 BUSINESS_GROUP_ID
 LEDGER_ID
 CURRENCY_CODE

20. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 20
Cost Groups

21. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 21
Cost Groups
 Defaulted for Discrete Costing, one Cost Group per Organization
 Can have multiple CGs for Project MFG & Warehouse Mgmt (WMS)
 Project MFG allows multiple item costs by project or project group
 For WMS, per the reference manual:
 First, for all costing methods, accounts are determined by the cost group,
not by the subinventory or the organization parameters. The cost groups
allow items in the same subinventory to be held in different accounts.
 For actual costing, such as Average, FIFO, and LIFO, organizations, item
costs are held by the cost groups. When cost groups are assigned by item
status, the cost groups hold different item costs for items of different
status. In FIFO and LIFO organizations, the layer cost is maintained with
the cost group.
 In a Standard cost organization, a single Standard Cost is maintained for
each item. All inventory of that item, regardless of Cost Group, carries the
same Standard Cost.

22. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 22
Which Tables for Cost Groups?
 CST_COST_GROUPS
 COST_GROUP_ID
 COST_GROUP
 ORGANIZATION_ID
 CST_COST_GROUP_ACCOUNTS
 COST_GROUP_ID
 MATERIAL_ACCOUNT
 MATERIAL_OVERHEAD_ACCOUNT
 RESOURCE_ACCOUNT
 OVERHEAD_ACCOUNT
 OUTSIDE_PROCESSING_ACCOUNT
 CST_COST_GROUP_ASSIGNMENTS
 COST_GROUP_ID
 ORGANIZATION_ID

23. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 23
Change Gears to Item Costing Setup
 Cost Type Definition

24. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 24
What Did You Just Use for Cost Types?
 CST_COST_TYPES
 COST_TYPE_ID
 COST_TYPE
 ORGANIZATION_ID (only used if multi-org is unchecked)
 COSTING_METHOD_TYPE
 Reserved Cost Types
COST TYPE COST_TYPE_ID COSTING-
METHOD_
TYPE
FROZEN (Standard) 1 1
AVERAGE 2 2
PENDING 3 1
FIFO 5 5
LIFO 6 6
CTO 7 1
SELECTcost_type,
cost_type_id,
organization_id
FROM bom.CST_COST_TYPES;

25. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 25
Change Gears to Item Cost Setup
 Seeded Cost Elements – No Form to Access This
 COST_ELEMENT_ID
 COST_ELEMENT
COST_ELEMENT COST_ELEMENT_ID
Material 1
Material Overhead 2
Resource 3
Outside Processing 4
Overhead 5

26. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 26
On to Subelements
 Material Subelements

27. OAUG Discrete MFG SIG – Cost Group
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Helping people using Oracle Applications since 1990 Slide 27
Subelements (Continued)
 Overheads – Material Overheads

28. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 28
Subelements (Continued)
Overheads – Production Overheads

29. OAUG Discrete MFG SIG – Cost Group
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Helping people using Oracle Applications since 1990 Slide 29
Subelements (Continued)
 Resources

30. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 30
Subelements (Continued)
 OSP
Resources

31. OAUG Discrete MFG SIG – Cost Group
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Helping people using Oracle Applications since 1990 Slide 31
Where Are These Subelements?
 BOM_RESOURCES
 RESOURCE_ID
 RESOURCE_CODE
 ORGANIZATION_ID
 COST_ELEMENT_ID
 PURCHASE_ITEM_ID (for OSP Resources)
 FUNCTIONAL_CURRENCY_FLAG
 UNIT_OF_MEASURE
 RESOURCE_TYPE
 AUTOCHARGE_TYPE
 STANDARD_RATE_FLAG (1 or 2)
 DEFAULT_BASIS_TYPE
 ABSORPTION_ACCOUNT
 RATE_VARIANCE_ACCOUNT
 ALLOW_COSTS_FLAG (1 or 2)

32. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 32
Resource Charging Concepts
Autocharge
Type
AUTOCHARGE
_ TYPE
WIP move 1
Manual 2
PO receipt 3
PO Move 4
Default Basis
Type
DEFAULT_
BASIS_TYPE
Typically
used for:
Item 1 All costs
Lot 2 All Costs
Resource Units 3 Prod.
Ovhds
Resource Value 4 Prod.
Ovhds
Total Value 5 Mat’l
Ovhds
Activity 6 Activity
Based
Costs

33. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 33
Item Cost Defaults
 Material Overhead Defaults

34. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 34
Where Are the Material Overhead Defaults?
 CST_ITEM_OVERHEAD_DEFAULTS
 ORGANIZATION_ID
 ITEM_TYPE
 CATEGORY_SET_ID
 CATEGORY_ID
 MATERIAL_OVERHEAD_ID
 BASIS_TYPE
 USAGE_RATE_OR_AMOUNT

35. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 35
Item Costing
 Start with the Find Window

36. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 36
Buy Item Summary Cost Information

37. OAUG Discrete MFG SIG – Cost Group
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Helping people using Oracle Applications since 1990 Slide 37
Item Cost Settings by Cost Type

38. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 38
Where are These Cost Settings?
 CST_ITEM_COSTS
 ORGANIZATION_ID
 COST_TYPE_ID
 INVENTORY_ITEM_ID
 INVENTORY_ASSET_FLAG
 LOT_SIZE
 SHRINKAGE_RATE
 COST_UPDATE_ID
 ROLLUP_ID
 ASSIGNMENT_SET_ID
 “Who Columns”
 Only items with an INVENTORY_ASSET_FLAG of ‘1’ (Yes)
can have a cost record
 The item costs in your Costing Method Cost Type (Standard,
Average, etc.) are controlled by the forms and programs

39. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 39
Where are These Summary Costs?
 CST_ITEM_COSTS
 ORGANIZATION_ID
 COST_TYPE_ID
 INVENTORY_ITEM_ID
 INVENTORY_ASSET_FLAG
 LOT_SIZE
 SHRINKAGE_RATE
 COST_UPDATE_ID
 ROLLUP_ID
 ASSIGNMENT_SET_ID
 MATERIAL_COST
 MATERIAL_OVERHEAD_COST
 RESOURCE_COST
 OUTSIDE_PROCESSING_COST
 OVERHEAD_COST
 ITEM_COST
 UNBURDENED_COST
 BURDEN_COST
 PL_ITEM_COST
 TL_ITEM_COST
 PL_MATERIAL
 PL_MATERIAL_OVERHEAD
 PL_RESOURCE_COST
 PL_OUTSIDE_PROCESSING
 PL_OVERHEAD_COST
 TL_MATERIAL
 TL_MATERIAL_OVERHEAD
 TL_RESOURCE_COST
 TL_OUTSIDE_PROCESSING
 TL_OVERHEAD_COST

40. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 40
Summary Cost Relationships
 CST_ITEM_COSTS– General formulas
 TL Cost + PL Cost = ITEM_COST
 UNBURDENED_COST + BURDENED_COST = ITEM_COST
 ∑ Cost Elements = ITEM_COST
COLUMN Value
MATERIAL_COST 0.13
MATERIAL_OVERHEAD_COST 0
RESOURCE_COST 0
OUTSIDE_PROCESSING_COST 0
OVERHEAD_COST 0
ITEM_COST 0.13
MATERIAL_COST +
MATERIAL_OVERHEAD_COST +
RESOURCE_COST +
OUTSIDE_PROCESSING_COST +
OVERHEAD_COST
ITEM_COST

41. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 41
Detailed Cost Information – Buy Items

42. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 42
Where are These Detailed Costs – Buy Items?
 CST_ITEM_COST_DETAILS
 ORGANIZATION_ID
 COST_TYPE_ID
 INVENTORY_ITEM_ID
 RESOURCE_ID
 COST_ELEMENT_ID
 ROLLUP_SOURCE_TYPE
 LEVEL_TYPE
 SOURCE_ORGANIZATION_ID
 ALLOCATION_PERCENT
 ITEM_COST
 RESOURCE_RATE X
 USAGE_RATE_OR_AMOUNT X
 BASIS_FACTOR X
 NET_YIELD_OR_SHRINKAGE_RATE
 ITEM_COST
 Newly defined items might not have any cost details
RESOURCE_RATE: 1 X
USAGE_RATE_OR_AMOUNT: 0.13 X
BASIS_FACTOR: 1 X
NET_YIELD_OR_SHRINKAGE_RATE: 1 X
ITEM_COST: 0.13

43. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 43
Cost Relationships: Summary and Detail
 General Concepts
 ∑ CST_ITEM_COST_DETAILS = ∑ CST_ITEM_COSTS
 True by COST_ELEMENT_ID, LEVEL_TYPE or in total
 When you run a Cost Mass Edit it automatically corrects the
Summary Cost table to equal ∑ CST_ITEM_COST_DETAILS
 If not equal the Standard Cost Update will fail
 If not equal the ∑ (Qty X Unit Costs) ≠ ∑ accounting entries

44. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 44
What About Cost Views?

45. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 45
Pre-Built or Seeded Cost View Choices

46. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 46
Element by sub-element Example

47. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 47
Cost Details for Buy Items
 CST_ITEM_COST_DETAILS

48. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 48
Extensible Cost Views
 You can build your own item cost views
 These views are registered in CST_INQUIRY_TYPES
 This table drives the Cost View Inquiry screens
• UNIQUE_ID
• INQUIRY_NAME
• DESCRIPTION
• USER_DEFINED
• GUI_TEMPLATE_TYPE
• VIEW_NAME
• COLUMN1_HEADING
• COLUMN2_HEADING
• INVENTORY_FLAG
• DISABLE_DATE
• …various prompt columns

49. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 49
End of Session I
 How Did We Do?
 Looking for feedback
 Is this useful?
 Want less detail? More Detail?
 More technical information? Or less technical information?

50. OAUG Discrete MFG SIG – Cost Group
April 27, 2010
Helping people using Oracle Applications since 1990 Slide 50