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Oracle Process ManufacturingCost Management User's GuideRelease 12.2Part No. E49061-15March 2021
Oracle Process Manufacturing Cost Management User's Guide, Release 12.2Part No. E49061-15Copyright 1998, 2021, Oracle and/or its affiliates.Primary Author:Madhusmita MahapatroThis software and related documentation are provided under a license agreement containing restrictions onuse and disclosure and are protected by intellectual property laws. Except as expressly permitted in yourlicense agreement or allowed by law, you may not use, copy, reproduce, translate, broadcast, modify, license,transmit, distribute, exhibit, perform, publish, or display any part, in any form, or by any means. Reverseengineering, disassembly, or decompilation of this software, unless required by law for interoperability, isprohibited.The information contained herein is subject to change without notice and is not warranted to be error-free. Ifyou find any errors, please report them to us in writing.If this is software or related documentation that is delivered to the U.S. Government or anyone licensing it onbehalf of the U.S. Government, then the following notice is applicable:U.S. GOVERNMENT END USERS: Oracle programs, including any operating system, integrated software,any programs installed on the hardware, and/or documentation, delivered to U.S. Government end users are"commercial computer software" pursuant to the applicable Federal Acquisition Regulation and agencyspecific supplemental regulations. As such, use, duplication, disclosure, modification, and adaptation of theprograms, including any operating system, integrated software, any programs installed on the hardware,and/or documentation, shall be subject to license terms and license restrictions applicable to the programs. Noother rights are granted to the U.S. Government.This software or hardware is developed for general use in a variety of information management applications.It is not developed or intended for use in any inherently dangerous applications, including applications thatmay create a risk of personal injury. If you use this software or hardware in dangerous applications, then youshall be responsible to take all appropriate fail-safe, backup, redundancy, and other measures to ensure itssafe use. Oracle Corporation and its affiliates disclaim any liability for any damages caused by use of thissoftware or hardware in dangerous applications.Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks oftheir respective owners.Intel and Intel Xeon are trademarks or registered trademarks of Intel Corporation. All SPARC trademarks areused under license and are trademarks or registered trademarks of SPARC International, Inc. AMD, Opteron,the AMD logo, and the AMD Opteron logo are trademarks or registered trademarks of Advanced MicroDevices. UNIX is a registered trademark of The Open Group.This software or hardware and documentation may provide access to or information about content, products,and services from third parties. Oracle Corporation and its affiliates are not responsible for and expresslydisclaim all warranties of any kind with respect to third-party content, products, and services unlessotherwise set forth in an applicable agreement between you and Oracle. Oracle Corporation and its affiliateswill not be responsible for any loss, costs, or damages incurred due to your access to or use of third-partycontent, products, or services, except as set forth in an applicable agreement between you and Oracle.For information about Oracle's commitment to accessibility, visit the Oracle Accessibility Program website athttp://www.oracle.com/pls/topic/lookup?ctx acc&id docacc.Oracle customers that have purchased support have access to electronic support through My Oracle Support.For information, visit http://www.oracle.com/pls/topic/lookup?ctx acc&id info or visit http://www.oracle.com/pls/topic/lookup?ctx acc&id trs if you are hearing impaired.
ContentsSend Us Your CommentsPreface1OverviewOPM Cost Development Area.1-1Cost Management Process Flow.1-2Defining Costs. 1-3Establishing Standard Costing. 1-5Establishing Actual Costing. 1-5Establishing Lot Costing. 1-6Retroactive Pricing. 1-6Valuing Inventory and Resource Transactions. 1-8Monitoring and Simulating Costs. 1-92Oracle Cost Management Command CenterOracle Cost Management Command Center User Interface. 2-2Overview. 2-2Period Health Check (Process) Dashboard. 2-3WIP Valuation (Process) Dashboard. 2-133Setting UpSetting Up in Other Applications. 3-2Setting Profile Options. 3-4Understanding Cost Types. 3-32Standard Costing. 3-32iii
Actual Costing. 3-33Lot Cost Type. 3-37Defining Cost Types. 3-38Defining Cost Calendars. 3-40Assigning Calendar to Legal Entity. 3-41Setting the Period Status. 3-41Defining Component Groups. 3-43Defining Cost Component Classes. 3-43Defining Cost Analysis Codes. 3-46Defining Costing Organization Associations.3-47Defining Fiscal Policies. 3-48Defining Event Fiscal Policies. 3-49Assigning Ledgers. 3-50Defining Percentage Overhead Codes . 3-50Defining Overhead Priorities .3-52Defining Overhead Percentage. 3-53Defining Source and Target Variable Overhead Components Associations. 3-54Defining Cost Factors . 3-55Defining Resource Costs. 3-56Defining Fixed Overheads. 3-58Setup and Configuration Steps for Cost Management Command Center. 3-60Loading Cost Management Data.3-604Using Standard CostingRequirements. 4-2Understanding Standard Cost. 4-5Factors Affecting Standard Costs. 4-5Defining Standard Item Costs. 4-10Defining Recipe, Routings, and Formulas.4-13Defining Resources and Resource Costs. 4-13Defining Rollup Source Organizations. 4-13Running Standard Cost Rollup. 4-15Cost Rollup Error Messages. 4-18Viewing Standard Costs. 4-18Viewing Overhead Details. 4-18Viewing Routing Costs. 4-19Viewing Formula Costs. 4-20Viewing Item Costs. 4-21Item Cost List Window. 4-22iv
5Using Actual CostingRequirements. 5-2Understanding Actual Costing. 5-3Actual Cost Calculation Methods. 5-3Describing Transactions in Actual Costs. 5-5Transactions Impacting Raw Material Costs. 5-6Transactions Impacting Product Costs. 5-13Calculating PMAC Cost with Circular References.5-21Setting Up Expense Allocations. 5-22Defining Allocation Codes. 5-22Defining Allocation Basis. 5-23Defining Expenses to Allocate. 5-25Using Material Cost Component Classes. 5-26Defining Adjustment Reason Codes. 5-27Processing Cost Allocations. 5-27Running the Actual Cost Process. 5-28Viewing the Actual Cost Process. 5-31Viewing Actual Cost Error Messages. 5-32Aborting or Resetting the Actual Cost Process. 5-32Viewing Actual Cost Transactions.5-33Viewing Item Cost List. 5-35Item Cost List Window. 5-37Viewing Overhead Details. 5-37Viewing Routing Costs.
Welcome to Release 12.2 of the Oracle Process Manufacturing Cost Management User's Guide. This guide assumes that you have working knowledge of your business area's processes, tools, principles, and customary practices. It also assumes that you are familiar with Oracle Process Manufacturing. If you have never used Oracle Process
