Oracle Applications User Group

Discrete MFG SIG – Cost Group

April 27th 2010

Release 11i & 12:

Major Tables & Relationships for Costing, Session I
OAUG Discrete MFG SIG – Cost Group
April 27, 2010

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

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OAUG Discrete MFG SIG – Cost Group
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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

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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?

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Agenda – Session II
 Cost Setup  Update Standard Costs
 Define Resources  Update Standard Costs
 Define Overheads  Update Average Costs
 Define Departments  Cost History
 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

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Introduction to Session I – Costing Overview

PUR provides PO's
and Receipts
BOM's/Routings
for Roll Up
ACCOUNTS PURCHASING
PAYABLE Invoices/ INV Receipt
COST
Payments Trans & Costs
Exp Accr MANAGEMENT
Values Trans
Asset Values INV
Additions Stds Adj
Delivery
Trans Items ENGINEERING
Values BOM's
Trans
Asset Cost
FIXED GENERAL Inventory/
Accum Depr INVENTORY
ASSETS LEDGER WIP Trans
Depr Exp
Matl BILL OF
WIP Consumption & Requirements MATERIAL
WIP Completions

Project
ENG Items
Charges
planned in
Asset WORK IN
MRP
Additions PROCESS
Invoices /
Cash Receipt Trans Shipment
PROJECT Inventory Misc Trans Transactions
ACCOUNTING Transfers for Warranty
Repair Parts Items from
BOM's

WIP Supply
to MRP
CASH
ACCOUNTS MRP Release
MANAGEMENT SERVICE MRP
RECEIVABLE to WIP
(Bank Recon)

Repair ORDER
S/O Requirements
RMA's ENTRY

Invoice
Info

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Organization Overview
General Ledger

Legal Entity

Operating Unit

The Global Org can be

Global across OUs
Organization
(Item Master)

Inventory Inventory
Organization Location

FG STORES MRB
Subinventory Subinventory Subinventory

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Item Costing Setup Overview

Sub-Element
Defaults

Org Sub- Session II

Setup Elements

Cost Mass
Edits
Cost Item Costing
Types
Cost
Rollup
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Organization Setup in Cost, HRMS or Inventory

 Cost Mgmt => Setup => Account Assignments => Organization

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Organization Setup for Accounting Information

 Click on the “Others” button and you get these choices:

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Organization Setup for Accounting Information

 Associate your organization with Ledger, LE and OU

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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';

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Define your Inventory Organization

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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

SELECT organization_code,
organization_id,
primary_costing_method -- 1 = STD, 2 = AVG costing
FROM inv.MTL_PARAMETERS;

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Define your Costing Method

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Shipping Network Defaults

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Cost Account Defaults

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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)

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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

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Cost Groups

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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.
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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
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Change Gears to Item Costing Setup

 Cost Type Definition

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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- SELECT cost_type,
METHOD_
TYPE
cost_type_id,
organization_id
FROZEN (Standard) 1 1
FROM bom.CST_COST_TYPES;
AVERAGE 2 2
PENDING 3 1
FIFO 5 5
LIFO 6 6
CTO 7 1

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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

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On to Subelements

 Material Subelements

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Subelements (Continued)

 Overheads – Material Overheads

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Subelements (Continued)

Overheads – Production Overheads

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Subelements (Continued)

 Resources

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Subelements (Continued)

 OSP
Resources

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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)
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Resource Charging Concepts

Autocharge AUTOCHARGE Default Basis DEFAULT_ Typically
Type _ TYPE Type BASIS_TYPE used for:

WIP move 1 Item 1 All costs

Manual 2 Lot 2 All Costs

PO receipt 3 Resource Units 3 Prod.

Ovhds
PO Move 4 Resource Value 4 Prod.
Ovhds
Total Value 5 Mat’l
Ovhds
Activity 6 Activity
Based
Costs

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Item Cost Defaults

 Material Overhead Defaults

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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

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Item Costing

 Start with the Find Window

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Buy Item Summary Cost Information

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Item Cost Settings by Cost Type

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Where are These Cost Settings?

 CST_ITEM_COSTS
 ORGANIZATION_ID  SHRINKAGE_RATE
 COST_TYPE_ID  COST_UPDATE_ID
 INVENTORY_ITEM_ID  ROLLUP_ID
 INVENTORY_ASSET_FLAG  ASSIGNMENT_SET_ID
 LOT_SIZE  “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

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OAUG Discrete MFG SIG – Cost Group
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Where are These Summary Costs?

 CST_ITEM_COSTS
 ORGANIZATION_ID  UNBURDENED_COST
 COST_TYPE_ID  BURDEN_COST
 INVENTORY_ITEM_ID  PL_ITEM_COST
 INVENTORY_ASSET_FLAG  TL_ITEM_COST
 LOT_SIZE  PL_MATERIAL
 SHRINKAGE_RATE  PL_MATERIAL_OVERHEAD
 COST_UPDATE_ID  PL_RESOURCE_COST
 ROLLUP_ID  PL_OUTSIDE_PROCESSING
 ASSIGNMENT_SET_ID  PL_OVERHEAD_COST
 MATERIAL_COST  TL_MATERIAL
 MATERIAL_OVERHEAD_COST  TL_MATERIAL_OVERHEAD
 RESOURCE_COST  TL_RESOURCE_COST
 OUTSIDE_PROCESSING_COST  TL_OUTSIDE_PROCESSING
 OVERHEAD_COST  TL_OVERHEAD_COST
 ITEM_COST

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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 + MATERIAL_COST 0.13
MATERIAL_OVERHEAD_COST + MATERIAL_OVERHEAD_COST 0
RESOURCE_COST +
OUTSIDE_PROCESSING_COST + RESOURCE_COST 0
OVERHEAD_COST OUTSIDE_PROCESSING_COST 0
ITEM_COST OVERHEAD_COST 0
ITEM_COST 0.13

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Detailed Cost Information – Buy Items

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Where are These Detailed Costs – Buy Items?

 CST_ITEM_COST_DETAILS  RESOURCE_RATE X
 ORGANIZATION_ID  USAGE_RATE_OR_AMOUNT X
 COST_TYPE_ID  BASIS_FACTOR X
 NET_YIELD_OR_SHRINKAGE_RATE
 INVENTORY_ITEM_ID  ITEM_COST
 RESOURCE_ID
 COST_ELEMENT_ID
 ROLLUP_SOURCE_TYPE RESOURCE_RATE: 1 X
 LEVEL_TYPE USAGE_RATE_OR_AMOUNT: 0.13 X
BASIS_FACTOR: 1 X
 SOURCE_ORGANIZATION_ID NET_YIELD_OR_SHRINKAGE_RATE: 1 X
 ALLOCATION_PERCENT ITEM_COST: 0.13
 ITEM_COST

 Newly defined items might not have any cost details

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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

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What About Cost Views?

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Pre-Built or Seeded Cost View Choices

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Element by sub-element Example

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Cost Details for Buy Items

 CST_ITEM_COST_DETAILS

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OAUG Discrete MFG SIG – Cost Group
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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
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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?

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