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Fusion costing overview_high_level-final
 

Fusion costing overview_high_level-final

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    Fusion costing overview_high_level-final Fusion costing overview_high_level-final Presentation Transcript

    • SOLUTION CENTER Fusion Costing Overview Version 1.0 Released in Dec ‘07 June 2nd ,2010
    • 2Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER What’s Cost Accounting? What’s new in Fusion ? Business Flows Functional Flow Technical Architecture Costing setups Cost Processing Reports and Analytics Agenda
    • 3Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER What’s Cost Accounting? Supply Chain Activities – Procurement, Manufacturing and Distribution Finance Function – Payables Invoice, Revenue Recognition Measurement of cost for a cost object. Cost Object- It represents any activity/purpose for which separate measurement of cost is desired. Cost objects supported • Product • Job/Batch Maintain Cost Accounting Records • Accounting Distributions Balance Sheet AssetLiability Current Assets Inventory Finished Goods WIP Raw Material Income Statement Cost of Goods Sold Manufactured Trading Financial Reporting Performance evaluation Profit measurement Margin Analytics Operational Efficiency and Variance analysis Planning and Decision Support Make or buy Import vs Indigenous Budgeting Management Reporting
    • 4Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER What’s new in Fusion ? Robust Cost Accounting Functional Framework Multiple representation Item level cost method User defined cost granularity Dual Unit of Measure support Framework for landed costing Track internal profits And more…. Service Oriented Architecture – Vision to support multiple source systems
    • 5Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Core Business Flows Procurement  Simple purchases – Support Acquisition Cost on Invoice  Global Procurement – Transfer Price, PO Price Inventory Flows  Receipts and Issues  Intra-Organization Transfers  Inter-Organization Transfers – Transfer Price, Cost Plus  Cycle counts/Physical Counts Order Management  Simple sales issues and returns  Drop ship sales issues and returns – Transfer Price, Cost Plus  Revenue and COGS Matching Absorption of Overhead Costs  Multiple cost drivers  Multiple levels of rates definition  Review Under/Over absorption of overheads
    • 6Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Functional Flow Source Application Inventory Transactions Payables Invoices Revenue Recognition Events Run/Schedule Interfaces Cost Accounting RecordsRun Cost Processor Pre-Processor Average Cost Processor COGS Recognition Distribution Processor Create Cost Transactions Compute Item Costs, Absorb Overheads Match COGS to Revenue Create Cost Distributions Create Journal Entries and Post to GL Reports and Analytics
    • 7Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Technical Architecture Service Oriented Architecture (SOA)
    • 8Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Cross-Instance Cost & Financial Flow INVPO WIP SHIP INVPO WIP SHIP INVPO SHIP ETL & Master Data Management PO Receipts Inventory Shipments Costing GL Payables Receivables Fusion Costing imports receipt, inventory, manufacturing and shipment transactions from multiple AU instances and manages product costing and supply chain accounting in Fusion.
    • 9Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Costing Setups Organization Structure  Cost Organization  Cost Book Cost Profile  Cost Methods  Valuation Structure and Valuation Unit  Cost Element  Cost Component  Analysis Groups Overheads Absorption  Expense Pool  Overhead Rules
    • 10Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Fusion Organization Structure Inventory Org - M1 Inventory Org - M2 Business Unit 1 Inventory Org-D1 Inventory Org-D2 Business Unit 2 Ledger - Legal Entity
    • 11Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Cost Organization • Group of Inventory Organizations • Share costs • Uniform cost accounting policies • Centralized cost accounting process • Separate physical ownership from legal ownership • Business Rules • Cost Organization associated with Legal Entity • Can contain one or more inventory organizations belonging to a single Legal Entity • Inventory Organizations can span business units
    • 12Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Cost Organization..
    • 13Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Cost Book - Multiple Representation Currency Method Absorption Cost Book 1 USD Average Full Cost Book 2 Euro Average Full Cost Book 3 USD Average None Cost Book 4 USD Standard Full Cost Processors Inventory Transactions Financial Ledgers Primary Ledger – US GAAP France Euro Reporting Management – Lean Management – Shop Floor Corporate Reporting Requirements GAAP Cost Book 1 supports US GAAP reporting used for external US- based regulatory reporting Euro Cost Book 2 supports French ’plan comptable’ reporting used for external French country regulatory reporting Lean Cost Book 3 supports Lean reporting used for marginal cost based performance benchmarking and reporting Shop Floor Cost Book 4 supports Shop Floor reporting in standard cost operating environments (v1.1)
    • 14Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Cost Book - Multiple Representation • Achieved through Cost Books • Cost Org-Cost Book mapped to Ledgers • Mandatory association of cost organization with a primary ledger • Book assigned to a primary ledger becomes ‘Primary Cost Book’ • Ledger-less cost books for cost simulation • Flexible transaction processing for Secondary Books • Option to disable journal entries • Option to disable cost processing • Combination of Cost Organization and Cost Book inherit ledger attributes from General Ledger  Currency  Calendar  Chart of Accounts  Sub Ledger accounting method • Date effectively to support • Reporting changes • Organization structure changes • Mergers & Acquisitions
    • 15Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Cost Organization – Cost Book
    • 16Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Cost Profile Set of attributes that determines the cost computation rules • Cost Sharing • Specify level of cost sharing • Configured using Valuation structure and Valuation unit • Cost Calculation Rules • Cost Method • Costing Unit of Measure • Cost Granularity • Cost Elements • Cost Component Mapping • Can be defined at different levels • Cost Organization – Cost Book using ‘Default cost profiles’ • Item Category using ‘Default cost profiles’ • Item using ‘Item cost profiles’
    • 17Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Cost Profile New Reference Data Sharing feature
    • 18Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Cost Sharing • Valuation Structure • Determines the level of cost sharing • Cost Sharing levels • Cost Organization • Inventory Organizations • Sub Inventories • Locators • Grade • Lot • Serial • Valuation Unit • Specific identification for a cost sharing entity • Example: Inventory Org M1, Lot#12233, Sub Inventory FG • Manual or Automatic creation based on Valuation Structure definition
    • 19Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Configurable Cost Calculation Levels Valuation Structure Inventory Org Sub-inventory Cost Processor Locator Inventory Org Valuation Units Lot Sub-Inventory Grade Serial Number Inventory Issue Trx Cost processor calculates cost based on attributes of the Valuation Structure. In this example, item cost is calculated and maintained by sub-inventory and by inventory organization Inventory Org - Miami $12.50 Sub-inventory A $12.00 Sub-inventory B $9.50 Sub-inventory C $16.00
    • 20Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Valuation Structure Definition
    • 21Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Cost Calculation Rules Defined using Cost Profile, which contains:  Cost Method – Perpetual Average Costing  Costing Unit of Measure (Primary/Secondary)
    • 22Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Cost Granularity Definition of break up of costs Unlimited cost elements representing cost break up Behavior of cost element determined by element types:  Material  Overhead  Profit in Inventory Cost break up from source systems captured through Cost Components  Purchase Order Cost Components – PO Price, Freight, Tax, Invoice Variance  Inter-Organization transfers – Transfer Price, Source Organization Cost, Freight  Miscellaneous Transactions – User defined Cost Components mapped to appropriate Cost Elements User defined views of cost through Analysis groups  Each view can contain selected cost elements as per need  Classification of Cost Elements through Analysis Codes
    • 23Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Cost Element Cost Element Cost Element Type Cost Component Analysis Groups Marginal Costing Cost Sheet Direct Material Material PO Price Variable Direct Material Indirect Material Material Non Recoverable Tax Variable Direct Material Direct Material Material Transfer Price Variable Direct Material Handling charges Overhead Variable Factory Overheads Inspection Overhead Fixed Factory Overheads Utilities Overhead Fixed Factory Overheads
    • 24Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Cost Element
    • 25Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Cost Component Mapping
    • 26Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Default Cost Profiles
    • 27Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Item Cost Profiles
    • 28Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Transaction Processing Unified cost processor using Run Control Cost Processing split into multiple stages  Pre-Processor  Perpetual Average Cost Processor  COGS Recognition Process  Distribution Processor
    • 29Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Cost Processing
    • 30Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Item Cost
    • 31Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Item Cost Details
    • 32Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Cost History
    • 33Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Cost Comparison
    • 34Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Cost Accounting Distributions
    • 35Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Reports and Analytics OLTP OBIAKPI OBIAReport Inventory Valuation     Margin Analysis     In-Transit Valuation  *   Costing Sub Ledger Balances Review  Accrual Reconciliation  Un-invoiced Receipts Accrual   COGS and Revenue Matching   Accrual Clearing    Item Cost and Value Trend     Item Cost Breakdown   Period Validation Status  Receiving Balances   Overhead Assignment  Metric BIP Reports OTBI Dashboard
    • 36Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Sample Report
    • 37Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Cost Accountant Dashboard
    • 38Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Cost Accountant Dashboard
    • 39Oracle Rightshore™ Delivery © Copyright Capgemini 2005 All Rights Reserved SOLUTION CENTER Q&A