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Oracle Advisor Webcast
Introduction to Standard Costing
Marius Garip
Principal Technical Support Engineer
August 9, 2016

Safe Harbor Statement
The following is intended to outline our general product direction. It is intended for
information purposes only, and may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality, and should not be relied upon
in making purchasing decisions. The development, release, and timing of any features or
functionality described for Oracle’s products remains at the sole discretion of Oracle.

Oracle Advisor Webcast
Introduction to Standard Costing
Marius Garip
Principal Technical Support Engineer
August 9, 2016

Objectives
A better understanding of Standard Costing Method
Learn about the required steps to setup an Standard

Costing Organization
Understand some of the functionalities offered by Standard Costing Method

Agenda
Overview of Standard Costing
 Cost Structure and Setup of Standard Costing Organization
 Rolling Up and Update Standard Costs
 Report Pending Adjustments, Cost Type Comparison Report
 View Standard Cost History
 Purge Standard Cost Update History

Overview of Standard Costing
• Standard costing method allows you to:
• Establish and maintain standard costs
• Define cost elements for product costing
• Value inventory and WIP balances
• Perform extensive cost simulations using unlimited cost types
• Determine profit margin using expected product costs
• Update standard costs from any cost type
• Revalue on-hand inventories, intransit inventory, and discrete WIP jobs when
updating costs
• Record variances against expected product costs
• Measure your organization's performance based on predefined product cost

Setting up Standard Costing –Cost structure
• Pre-Defined Cost Elements
• Material -- The raw material/component cost at the lowest level of the bill of material determined
from the unit cost of the component item.
• Material Overhead -- The overhead cost of material, which can be used for any costs attributed to
direct material costs.
• Resource -- Direct costs, such as people (labor), machines, space, or miscellaneous charges, required
to manufacture products.
• Overhead -- The overhead cost of resource and outside processing, which is used as a means to
allocate department costs or activities.
• Outside Processing -- This is the cost of outside processing purchased from a supplier.
Tbl: CST_COST_ELEMENTS stores the five seeded cost elements: Material, Material Overhead,
Resource, Outside Processing, and Overhead

• Cost Sub-Elements
Subelements are smaller classifications of cost elements. Each Cost element can be associated with
one ore more elements.
• Material -- Material subelements classify material costs, such as plastic or metal. You use material
material subelements when defining the material cost element for the items. (Cost>Setup>Subelements >Material)
• Material Overhead -- Material Overheads are the indirect costs associated to an item.
Indirect costs can be added to the item costs on a fixed or a percentage basis. (Cost>Setup>Subelements
>Overheads)
• Resource - Define resource subelements (Cost>Setup>Subelements>Resources )
• Outside Processing -- (Cost>Setup>Subelements>Resources)
• Resource Overheads --Overhead subelements are applied in the routing and usually represents
production overhead -- (Cost>Setup>Subelements >Overheads)
Tbl: BOM_RESOURCES stores information about resources, overheads, material overheads, and
material sub-elements. COST_ELEMENT_ID determines the type of the resource.

• Basis Types
Basis types determine how costs are assigned to the item. Basis types are assigned to subelements, which
are then assigned to the item.
• Basis Types Available to Subelements
– Item
• Material / material overhead - fixed amount per item (generally for purchased components).
• Resource / outside processing / overhead - fixed amount per item moved through an operation.
– Lot
• Fixed lot charge to items or operations
• Material / material overhead - fixed cost / item’s standard lot size
• Resource / outside processing / overhead - fixed cost / standard lot quantity moved through the
operation

• Basis Types
– Resource Value
• Used with the material overhead and overhead Sub-element only and usually expressed as a rate.
• Used to apply overhead to an item, based on the resource value earned in the routing operation.
– Resource Units
• Used with the material overhead and overhead Sub-element only and usually expressed as a rate.
• Used to apply overhead to an item, based on the resource units earned in the routing operation.
– Total Value
• Used with the material overhead sub-element only and usually expressed as a rate.
• Used to apply overhead to an item, based on the total value of the item.
– Activity
• Used to directly assign the activity cost to an item. Used with the material overhead sub-element
only.

Item Costing Setup Overview
Sub-Element
Defaults
Organization Sub-Elements
Setup
Cost Mass
Edits
Cost
Types Item Costing
Cost
Rollup

Setting up Standard Costing
(Inventory Responsibility> Inventory>Setup>Organizations>Define new Inventory Organization >Others button
Accounting Informations> associate accounting Information's : Ledger, Operating Unit, Legal Entity)
1.Define new organization in Inventory

(Inventory Responsibility> Inventory>Setup>Organizations>Define new Inventory Organization >Others button
Inventory Information's> Setup Organization Parameters
2.Setup Organization Parameters
•Inventory Parameters Tab: Set Organization Code , Item Master Organization , Item Calendar.
•Costing Information Tab: Costing Method is set to Standard, Setup valuation accounts.
•Transfer Detail to GL is appropriately set (Yes- to transfer accounting entries to GL)
•Other accounts Tab: PPV , IPV , Inv AP Accrual, COGS, DCOGS accounts.
Tbl: mtl_parameters-primary_cost_method =1
Tbl: mtl_parameters –
GENERAL_LEDGER_UPDATE_CODE =1
NOTE: Costs of items can be shared across organizations using standard costing.
The organization that holds the costs is called the cost master organization.
You can share costs across standard cost organizations as long as the child cost
organizations have not enabled WIP.
You cannot share costs across average costing organizations.
The two item attribute controls, Costing Enabled and Inventory Asset Value determine
whether you share costs. If you don’t plan to share costs across standard costing
organizations, set the control level for these attributes at the organization level
Costs are maintained by the cost master organization and shared by the child cost
organizations. All reports, inquiries, and processes use the shared costs. You cannot
enter costs into the child cost organizations.

Inventory Responsibility> Inventory>Setup>Items>Attribute Controls
-Costing Enabled
-Inventory Asset Value )
If you don’t plan to share costs
across standard costing
organizations, set the control level for
these attributes at the organization
level

( Cost Management Responsibility >Cost>Setup>Cost Types)
3. Define Cost Type’s

Frozen: Is an predefined cost type used to value transactions and inventory balances for
organizations that use the Standard Costing Method.
In addition you can define and update and unlimited number of additional cost types for
purposes like cost history, simulations.
Define an User Defined cost type for simulation purpose
Defined Cost type : WhatIf CST for simulation
purposes
Data is saved in Tbl: CST_COST_TYPES

(Cost Management Responsibility > Cost>Setup>Sub-elements>Material)
4. Define Material Cost Sub-element Subelements needs to be defined by user.

Defined 2 Material Subelements: Glass and
Plastic .
Data is saved in Tbl: BOM_RESOURCES

–cost_element_id =1 (Material Subelement)

(Cost Management Responsibility > Cost>Setup>Sub-elements>Overheads)
5. Define Material Overhead Cost Sub-element
Defined Material Overhead
Subelement: “Freight”
Data is saved in Tbl: BOM_RESOURCES –

cost_element_id =2 (Material Overhead)

(Cost Management Responsibility > Cost>Setup>Sub-elements >Defaults)
6. Optional: Define material overhead defaults
Optional you can define and update default material overhead subelements and rates at the organization
or category level. When you define items in oracle Inventory, these defaults are automatically used. This
speed data entry when defining items. Defaulting occurs only for new created items
ONLY. For already created items ,material
overhead cost can be manually added in Item
Cost Summary or using costing interface tables
Note 213583.1 Ext/Pub How To Import Costs
Through Interface Tables
Setup to default Mat. Overhead cost “Freight”,

All Items, Basis type :Item , Amount : 10
Data is saved in Tbl:

CST_ITEM_OVERHEAD_DEFAULTS

7. BOM Setup Required for Cost Rollup and WIP
– Define Bills of Material Parameters ( BOM Responsibility>Bill of Materials>Setup>Parameters)

– Define Resources (BOM Responsibility>Bill of Materials>Routings>Resources) or (Cost>Setup>Sub-
elements>Resources)
– Define Departments ( Bill of Materials>Routings>Departments)
– Assign Resources to Department ( Bill of Materials>Routings>Departments>Click on Resources button)
8. WIP Setup
– Define WIP Accounting Classes and Wip Valuation Accounts ( Wip>Setup >Wip Accounting Classes)
– Define WIP Parameters ( Wip>Setup >Parameters) Required for Cost Rollup , Inventory , WIP
9. Open Inventory Accounting Period (Inventory>Accounting Close Cycle>Inventory Acct Periods)
10. Define Item Costs (Costs>Item Costs >Item Costs )

You can define costs for buy items or enter additional costs for assemblies with costs generated from the cost rollup.

Rolling Up and Updating Standard Costs
Supply Chain Cost Rollup enables you to roll up costs across multiple organizations,
with a mixture of costing methods and currencies, connected to sourcing rules. You can
perform either an single level cost rollup or a full cost rollup:
A single-level cost rollup considers only at the first level of the bill structure for each
assembly in the rollup- and rolls the costs for the items at this level into the parent.
This method does not reflect structure or cost change occurring at a level below the
first level of assemblies
A full cost rolllup first performs a bill of material explosion for assemblies. The rollup
process builds the costs of assemblies , starting with the lowest level , and works up the
structure to top-level assemblies.
This method gives you the most current bill of material structure and component costs.

The following BOM would be used in understanding the Cost rollup process.
FG1
PUR1 SUB1
PUR2 PUR3
Finished good item FG1 is manufactured from 1 purchased item (PUR1) and an sub-assembly (SUB1)
and
Sub-assembly item SUB1 is manufactured using 2 other purchased items PUR2 and PUR3

(Inventory Responsibility>Inventory>Items>Master Items)
•Define the Items and assign to Organization M10
FG1 & SUB1 –Finished Good Items

Tools>Copy From >Apply Finished Goods Template
Left: Organization Assignment >Assign to Org M10
Data is saved in Tbl: MTL_SYSTEM_ITEMS_B

Primary key for an item is the
INVENTORY_ITEM_ID and ORGANIZATION_ID

PUR1, PU2–Purchased Items

Tools>Copy From >Apply Purchased Items Template


PUR3 –Purchased Item
Tools>Copy From >Apply Purchased Items Template


( Bill of Materials>Routings>Resources) or (Cost>Setup>Sub-elements>Resources)
• Define Resources
Resources can be costed or

not. To cost resources “Costed”
checkbox must be checked.
Click on “Rates "button to

associate resource with an
cost type and to enter an
resource cost
Resources are saved inTbl:

BOM_RESOURCES –
cost_element_id =3 (Resource)

( Bill of Materials>Routings>Resources) or (Cost>Setup>Sub-elements>Resources)
• Define Resources Rates in the User Defined Cost Type
CUT- associated with the user defined cost type WhatIfCST and unit cost of resource is 12$
PRINT -associated with the user defined cost type WhatIfCST and unit cost of resource is 16
ASM - -associated with the user defined cost type WhatIfCST and unit cost of resource is 20

( Bill of Materials Responsibility >Bill of Materials>Routings>Departments)
• Define Departments
DSR1 , DSR 2, DSR3 are 3 departments

defined in Inventory Org M10
Data is saved in Tbl:

BOM_DEPARTMENTS
PK: DEPARTMENT_ID

( BOM Responsibility: Bill of Materials>Routings>Departments>Click on Resources button )
• Assign Resources to Departments
Click on Resource button to

associate resources with an Department.
This association enables the valid resources
for each department
Department/Resource association is saved

in TBL:BOM_DEPARTMENT_RESOURCES
( Bill of Materials Responsibility >Bill of Materials>Routings>Routings)
• Define Routings
Routings are defined for both assembly item FG1 and sub-assembly item SUB1
Routing for SUB1 has 2 operations 10 and 20. Item PUR2 is worked in op 10 using resource CUT and item PUR3
is worked in operation 20 using resource PRINT. In both cases the usage rate is 1.(1 unit of resource at operation)
To save time you can define standard operations– this automatically assigns resources to each operation

( Bill of Materials>Routings>Routing)
• Routings
Routing for FG1 has 1 operation 10
Subassembly SUB 1 and comp item PUR 1 are worked upon operation 10 using resource ASM
Backend INFO:
SELECT BROU.ASSEMBLY_ITEM_ID,BSEQ.OPERATION_SEQ_NUM,
BSEQ.DEPARTMENT_ID,BRES.*
FROM bom_operation_resources BRES,bom_operation_sequences
BSEQ,
bom_operational_routings BROU
WHERE
BRES.OPERATION_SEQUENCE_ID=BSEQ.OPERATION_SEQUENCE_ID
AND
BSEQ.ROUTING_SEQUENCE_ID=BROU.ROUTING_SEQUENCE_ID
AND (BROU.assembly_item_id, BROU.ORGANIZATION_ID) IN
( select inventory_item_id , organization_id from
mtl_system_items_b where
segment1=‘FG1' and organization_id=&org_id)
ORDER BY BROU.assembly_item_id,
BSEQ.OPERATION_SEQ_NUM, BRES.RESOURCE_SEQ_NUM;
To save time you can define standard operations– this automatically assigns resources to each operation

(Cost Management Responsibility>Cost >Setup > Subelements > Overheads)
( Click on Rates Button to associate with Departments and setup Rates)
• Define Overhead and Overhead Rates

‘Mgmt Ovh’ overhead has been defined. This overhead has been associated with the Departments DSR1 and
DSR2 and Cost type ‘WhatIfCST’.
Basis Type as Resource Value : and Rate is 0.1 (10%) for department DSR1 and 0.05 for department DSR2(5%)
Data saved in TBL:

CST_DEPARTMENT_OVERHEADS
Note:- Overheads operate at the Department Level and need to be associated with a cost type and departments

•Resource Overhead Association (Cost >Setup > Subelements > Overheads >Resources )
In order to charge the overhead based on specific resource within the Department, there needs to be an association
between the Overhead and the specific Resource within the Department.
To satisfy this condition, ‘Mgmt Ovh’ has been associated with Resource CUT in Department DSR1 and Resource PRINT
in Department DSR2
Data saved in TBL: CST_RESOURCE_OVERHEADS

(Bill of Materials Responsibility >Bills Of Materials>Setup>Parameters)
•Setup Bill of Materials Parameters
Configuration Options
box applies only to
configured items
Supply Chain Cost Rollup will ignore the

cost of the items that have the status
same as specified in BOM parameters for
the organization
BOM parameters need to be setup in order to define an Bill of Material

( BOM Responsibility>Bills Of Materials>Bills>Bills )
•Define Bill of Materials (BOM)
FG1 has component items SUB1

&PUR1 at operation 10 in dept.
DSR3
SUB1 has component items PUR2

at operation 10 in dept. DSR1 and
PUR3 at operation 20 in dept.DSR2

( Cost Responsibility >Costs>Item Costs>Item Costs) Assemblies (make items) have this
•Define initial Items Costs for purchased items control turned on, and buy items have
this control turned off by default.
PUR 2 - Material Cost of Item PUR2 has been defined as $20 with a basis type Item
Material Overhead of item PUR 2 has been be defaulted as 10$ with basis type Item
due to setup of Material Overhead Defaults
If no transaction has been
performed for the item you can
update directly Frozen Cost Type
Material Overhead “Freight “ in

Frozen Cost Type is defaulted
from initial setup of Material
Overhead Default.

•Items Costs ( Cost Responsibility >Costs>Item Costs>Item Costs)
PUR3 -Material Cost of Item PUR3 has been defined as $2 with a basis type Item
Material Overhead of item PUR 2 has been defaulted as 10$ with basis type Item
If no transaction has been

performed for the item
you can update directly
Frozen Cost Type
PUR 1 -Material Cost of Item PUR1 has been defined as $5with a basis type Item
Material Overhead of item PUR 1 has been defaulted as 10$ with basis type Item
Material Overhead Freight
in Frozen Cost Type is
defaulted from initial setup
of Material Overhead
Default.
For SUB1 and FG1– no initial cost defined –we will set the costs based on cost rollup

• Run Supply Chain Cost Rollup (Cost >Supply Chain Costing>Run Supply Chain Cost Rollup)
Run Options:
 Supply Chain Cost Rollup – No Report: rolls up costs, changes cost in WhatifCST cost type, but no report
 Supply Chain Cost Rollup – Print Report: rolls up costs, cost in WhatifCST cost type and creates report
 Temporary Supply Chain Cost Rollup – Print Report: rolls up costs, only produces a report

Run Supply Chain Cost Rollup – Print

Report for
1.User defined Cost Type –What ifCST
2.Full Cost Rollup
3. Assembly Item :FG1

Cleaning/deleting of data in temp tables is done as part of the internally launched Delete Supply chain cost
Rollup request which is independent of the parent program of Supply Chain Cost Rollup.
This separation of the delete program has been done for performance reasons so that the main program
doesn't have to wait for data cleanup.
Copyright © 2016, Oracle and/or its affiliates. All rights reserved. |

Supply Chain Bills of Material Indented Cost Report



•Review Item Cost ( Cost Responsibility >Cost > Item Costs > Item Costs )
Tbl :cst_item_costs - stores item cost control information by cost type.

Cost_type_id=1 –Frozen (predefined for Standard Costing Org)
Standard Costing uses the cost of an item that exists in the ‘Frozen’ cost type only for accounting all
transactions pertaining to the Organization.
Hence, if we are satisfied with our simulated cost for the finished good item FGI we can proceed and
update the costs in Frozen Cost type with the rolled up cost in WhatIfCST .

•Cost Update ( Cost Responsibility >Cost > Item Costs > Standard Cost Update > Update Standard Costs)
Note: Inventory Period needs to be open
Tbl: cst_std_cost_adj_values -stores

adjustment details during the standard
cost update process and is used for
reporting purposes.(ie Inventory , Intransit
, Wip Standard Cost Adjustment Reports )
1. Adjustment Reports='Y' and Save Details='Y': Adjustment reports will be launched and the data will in the
cst_std_cost_adj_values table.
2. Adjustment Reports='Y' and Save Details='N': Adjustment reports will be launched. After generating the reports, data from
cst_std_cost_adj_values will be deleted.
3. Adjustment Reports='N' and Save Details='Y': After the Standard Cost Update process, the adjustment reports are not
launched but can be run manually at the later stage. The data is saved in the table cst_std_cost_adj_values.

•Cost Update ( Cost Responsibility >Cost > Item Costs > Standard Cost Update > Update Standard Costs)
New feature after

Patch:16316382:R12.BOM.C. Choosing
yes will delete any associations chosen
by customer through the resource and
overhead list.(see Doc ID 1584925.1)
Copyright © 2016, Oracle and/or its affiliates. All rights reserved. |

(Cost Responsibility> Cost > Item Costs > Item Costs )
•Review Item Cost
Costs in Frozen Cost

type have been derived
from the Cost Rollup

Updating Pending Costs to Frozen Standard Costs
• Updating pending costs to Frozen standard costs does the following:
• Updates the existing standard costs with the costs created in the new cost type and creates the resulting
adjustment accounting entries.
• If you use Work in Process, the cost update revalues discrete job balances, creates accounting adjustments, and
prints the adjustments along with the new job values in its report.
• Creates item cost history.
• Prints the Inventory, Intransit, and WIP Standard Cost Adjustment reports that detail the valuation changes in
your inventory due to the change in the standard costs.
• If you share costs across inventory organizations, the standard cost update automatically revalues the on-hand
balances in all organizations that share costs.
• Oracle recommends that you also print the Cost Type Comparison Reports to display differences in item costs for
any two cost types. You can compare by cost element, activity, subelement, department, this/previous level, or
operation.
• Optionally, saves update details for rerunning adjustment reports
• You can only update standard costs from the master costing organization, which must use standard costing.

( BOM Responsibility >Bills Of Materials>Bills>Bills of Material)
Indicates that only 80% of the usage quantity of
Bill of Materials (BOM) the component on the bill actually survives to be
incorporated into the finished assembly
(Cost Responsibility> Cost>Setup>Cost Types:WhatIfCST)

Indicate whether to include the effect of component
yield when rolling up costs for this cost type.

For every 1 unit of PUR2 used in the making of SUB1, 0.8 units would effectively get utilized and the
remaining 0.2 units would go unutilized or waste. In order to see that 1 unit of SUB1, effectively gets
utilized 1/0.8 or 1.25 units of component PUR2.

(Navigation: Cost Responsibility>Cost > Item Costs > Item Costs > Item Costs Summary > Item Costs Details)
•Shrinkage Rate
Enter the manufacturing shrinkage rate as 0.2 for the Finished Good ‘FG1’.
Shrinkage-expected loss of assembly
item in the manufacturing process
Cost rollup uses the value entered here to determine the incremental component requirements
due to the assembly shrinkage of the current item.
All the costs displayed in the ‘extended cost’ column of the earlier Supply Chain Bills of Material Indented
would get multiplied by the following factor:
1/ (1 – manufacturing shrinkage)  1 / (1 – 0.2)

Shrinkage
factor
114.5* 1/(1-0.2)=143.125

Reporting Pending Adjustments
(Cost Management Responsibility> Cost>Report>Cost>Pending>Run Report Pending Cost Adjustments)
• Report pending adjustments to simulate a change in standard costs.
This launches two processes, one to simulate a cost update from the cost type that you
specify to the Frozen cost type, and one to launch the Inventory, Intransit, and WIP
Standard Cost Adjustment reports.
These reports enable you to preview the changes that the standard cost update would
perform for current inventory balances. These same three reports are run as part of a
cost update. In this case, the reports show adjustments made to the inventory
valuation by the cost update process.
To exemplify this report I have done an misc receipt of qty 10 for assembly Item FG1
1. Inventory Responsibility >Setup>Organizations>Subinventories>First define an subinventory (Ex :Store)
2. Inventory Responsibility>Transactions>Miscellaneous Transactions >Transaction Type: Misc Receipt

Reporting Pending Adjustments
(Cost Management Responsibility >Cost>Report>Cost>Pending>Run Report Pending Cost Adjustments)
Old cost in Frozen New Cost in WhatIfCST Possible value adjustments

Cost Type CostType in Inventory
107 143.125
To exemplify this report I have

done an misc receipt of qty 10 for
assembly Item FG1.This was done
at Frozen Cost (ie 107)

Cost Type Comparison Report
( Cost Management>Reports>Cost>Item Cost Type Comparison Report )
Use Cost Type Comparison Report to review the

differences in your item costs by cost type
Choose how to compare the item cost

By :Cost Element, Subelement, Department,
Activity, Operation, Level Type

Cost Type Comparison Report
( Cost Management>Reports>Cost>Item Cost Type Comparison Report )

Viewing Standard Cost History
( Cost Management Responsibility> Cost>Item Costs>Standard Cost Update>View Cost History)
You can view standard cost history and inventory adjustment values and quantities for items using the
View Cost History window
All historical cost information for your items is displayed for each cost update, even if you did not choose to save cost
update details. All item costs updated or defined using the Define Item Cost window are also displayed.
Tables: cst_standard_costs, cst_elemental_costs , cst_cost_updates holds the Item Cost History data
CST_STANDARD_COSTS- stores item cost and standard cost adjustment history for every item for every cost update
CST_COST_UPDATES -stores a record for every Update Standard Cost request submitted
CST_ELEMENTAL_COSTS -stores the elemental item cost history for every cost update

Viewing and Purging Standard Cost Update History
(Cost Management Responsibility> Cost>Item Costs > Standard Cost Update >Standard Cost History )
You can view previous standard cost update requests , options and ranges using the View Standard Cost
Update window.
When you update costs and choose to save details, information associated with the update is retained so that
you can rerun adjustment reports.
When you no longer needs such information, you can purge it using Purge Standard Cost History Window

Viewing and Purging Standard Cost Update History
Cost Management Responsibility> Cost>Item Costs > Standard Cost Update >Purge Cost Update History
Update Date LOV is not supposed to

show updates that were run in inventory
periods that have not been closed
Option code << Cost Update Adjustment Details >> purges only data from CST_STD_COST_ADJ_VALUES
Option code <<Item cost history >>purges data from cst_standard_costs, cst_elemental_costs , cst_cost_updates
Option code <<Adjustment details and item cost history>> data from all above tables will be purged

Summary
What we covered today
Cost Structure and steps to setup an Standard

Costing Organization
Supply Chain Cost Rollup and Update Standard Cost Process
View Item cost history, View Historical Cost update details, Purge Item
cost history and standard cost updates info.

Top Articles and Community Links
 Oracle Cost Management User's Guide Release 12.1 Part Number E1363505
http://docs.oracle.com/cd/E18727_01/doc.121/e13635/toc.htm
 Guide to Standard Costing: An Oracle White Paper (Doc ID 259971.1)
 Oracle Cost Management SIG Sessions (Doc ID 1478881.1)

Q&A
• To ask a question on the phone
line, select *1 on your phone.
• To ask a question online, use the
Q&A area at the top.
• Your question will be read aloud in
the order received.
• Question can also be asked on the
My Oracle Support Communities

Oracle Advisor Webcast Series
Locating Current Schedule & Archived Recordings
Review the current schedule

and archived recording for your
product from Doc 740966.1
Select E-Business Suite

Manufacturing

Oracle Advisor Webcast Program
Locating Current Schedule & Archived Recordings
Access the Manufacturing

directly via Doc ID 1455888.1
Drill down to your area of

interest

Stay Connected
Value Chain Planning Support Social Media Channels
My Oracle Support Cost Management Community:
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My Oracle Support Blogs:

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Learn More - Resources and References on Support Portals
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Learn More - Resources and References to Get Proactive
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Check out the Get Proactive Portfolio for your products. Get familiar with the top
proactive tools. Doc 432.1
Ask the Get Proactive Team get-proactive_ww@oracle.com
Get Proactive Events Calendar

Automatically updated to include latest Advisor Webcasts, MOS Essentials
trainings, user group sessions, and more
Stay Informed about Upcoming Events. Doc 125716.1

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THANK YOU

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MFG CST Advisor Webcast 2016 0809

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MFG CST Advisor Webcast 2016 0809

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ATTENTION – AUDIO Options

Option 1: Voice Streaming Audio Broadcast Option 2: Teleconference (Dial In)

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 Check out Document ID 740966.1

 Select your area of interest

 Scan through the list of Current Topics

 Register for the session of your interest

 For upcoming < Your Product Area> Advisor

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A better understanding of Standard Costing Method

Learn about the required steps to setup an Standard

Understand some of the functionalities offered by Standard Costing Method

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 Cost Structure and Setup of Standard Costing Organization

 Rolling Up and Update Standard Costs

 Report Pending Adjustments, Cost Type Comparison Report

 View Standard Cost History

 Purge Standard Cost Update History

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1.Define new organization in Inventory

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3. Define Cost Type’s

Data is saved in Tbl: CST_COST_TYPES

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4. Define Material Cost Sub-element Subelements needs to be defined by user.

Data is saved in Tbl: BOM_RESOURCES

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Data is saved in Tbl: BOM_RESOURCES –

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Setup to default Mat. Overhead cost “Freight”,

Data is saved in Tbl:

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– Define Bills of Material Parameters ( BOM Responsibility>Bill of Materials>Setup>Parameters)

10. Define Item Costs (Costs>Item Costs >Item Costs )

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FG1 & SUB1 –Finished Good Items

Data is saved in Tbl: MTL_SYSTEM_ITEMS_B

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PUR1, PU2–Purchased Items

Data is saved in Tbl: MTL_SYSTEM_ITEMS_B

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Data is saved in Tbl: MTL_SYSTEM_ITEMS_B

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Resources can be costed or

Click on “Rates "button to

Resources are saved inTbl:

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DSR1 , DSR 2, DSR3 are 3 departments

Data is saved in Tbl: