Cost & Performance Management Sig

1,573 views

Published on

Published in: Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,573
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
34
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Cost & Performance Management Sig

    1. 1. George L. Somogyi Cost & Performance Management SIG OAUG Fall 2001 San Diego
    2. 2. Agenda <ul><li>Review of Cost Management “Top Ten Enhancements” </li></ul><ul><li>Topic Presentation “Changing Costing Method from Average to Standard” </li></ul><ul><li>Open Discussion </li></ul><ul><li>SIG Business </li></ul><ul><li>Closing Comments </li></ul>
    3. 3. <ul><li>Review of Top Ten Cost Management Enhancements </li></ul>
    4. 4. Cost Management 2001 Top 10 Enhancements Product Enh # Rank Subject Response Response Text Oracle Cost Management 314431 1 ACCRUAL RECON REPORT NEEDS TO SUPRESS SMALL QTY AND AMOUNT C To internal (Oracle) review. We will need customer input to implement this suggestion. Cost Management and Financials will Oracle Cost Management 146873 2 PROVIDE DESCENDING DOLLAR INVENTORY VALUATION REPORT C To internal (Oracle) review. Oracle Cost Management 101062 3 COST ROLLUP FOR A LIST OF ITEMS (MULTIPLE ITEMS ACROSS CATEGORIES) C To internal (Oracle) review. Oracle Cost Management 101061 4 STANDARD COST UPDATE FOR A LIST OF ITEMS C To internal (Oracle) review. Oracle Cost Management 99530 5 MULTIPLE ITEM COST OF GOODS SOLD ACCOUNTS A The Client Extension allows easy separation by element. R 11.0
    5. 5. Cost Management 2001 Top 10 Enhancements Product Enh # Rank Subject Response Response Text   Oracle Cost Management 1084500 6 HOW TO UPDATE ITEM COST TO LAST PO PRICE C Additional information required: Does the customer want to run the entire process based on last PO price? Would this be a default method for the customer?   Oracle Cost Management 99527 7 NON STANDARD JOB OVERHEAD ABSORPTION C The Client Extension allows easy separation by element. Oracle Cost Management 324249 8 PROVIDE MASS EDIT FOR RESOURCE/OVERHEAD/OUTSIDE PROCESSING RATES C To internal (Oracle) review.   Oracle Cost Management 288126 9 ENH:MASS EDIT CAPABILITY FOR OUTSIDE PROCESSING ELEMENT C To internal (Oracle) review.   Oracle Cost Management 1189351 10 CALCUALTE MATERIAL OVERHEAD AS C To internal (Oracle) review.  
    6. 6. Cost Management 2000 Top 10 Enhancements <ul><li>1 – Enhancement 314431 426 Votes </li></ul><ul><ul><li>Accrual reconciliation report should suppress small qty and amount differences </li></ul></ul><ul><li>2 - Enhancement 146873 243 Votes </li></ul><ul><ul><li>Provide descending dollar inventory valuation report </li></ul></ul><ul><li>3 - Enhancement 101062 226 Votes </li></ul><ul><ul><li>Provide cost roll-up for a item(s) across multiple categories </li></ul></ul><ul><li>4 - Enhancement 101061 140 Votes </li></ul><ul><ul><li>Provide ability to run standard cost update for a list of items </li></ul></ul><ul><li>5 - Enhancement 1084500 115 Votes </li></ul><ul><ul><li>Provide option to update item standard cost to last PO price </li></ul></ul>
    7. 7. Cost Management 2000 Top 10 Enhancements <ul><li>6 - Enhancement 99527 80 Votes </li></ul><ul><ul><li>Ability to perform non-standard job overhead absorption </li></ul></ul><ul><li>7 - Enhancement 324249 72 Votes </li></ul><ul><ul><li>Provide mass edit for resource / overhead / outside processing rates </li></ul></ul><ul><li>8 - Enhancement 288126 50 Votes </li></ul><ul><ul><li>Provide mass edit capability for outside processing cost element </li></ul></ul><ul><li>9 - Enhancement 1189351 49 Votes </li></ul><ul><ul><li>Ability to calculate material overhead as % of material cost </li></ul></ul><ul><li>10 - Enhancement 1134198 45 Votes </li></ul><ul><ul><li>Ability to change sub-inventory asset account numbers when sub-inventory has balances </li></ul></ul>
    8. 8. Cost Management 1999 Top 10 Enhancements <ul><li>1 - Enhancement 99530 275 Votes </li></ul><ul><ul><li>Multiple item cost of goods sold accounts </li></ul></ul><ul><li>2 - Enhancement 171202 258 Votes </li></ul><ul><ul><li>Provide visibility of last actual item purchase price </li></ul></ul><ul><li>3 - Enhancement 304454 238 Votes </li></ul><ul><ul><li>Cost rollup and WIP costing need to support phantom resources </li></ul></ul><ul><li>4 - Enhancement 167347 205 Votes </li></ul><ul><ul><li>Provide facility to launch INV to GL post simultaneously </li></ul></ul><ul><ul><li>for all INV orgs </li></ul></ul><ul><li>5 - Enhancement 79191 160 Votes </li></ul><ul><ul><li>Improve receiving / inspection accounting </li></ul></ul>
    9. 9. Cost Management 1999 Top 10 Enhancements <ul><li>6 - Enhancement 146873 153 Votes </li></ul><ul><ul><li>Provide descending dollar inventory valuation report </li></ul></ul><ul><li>7 - Enhancement 124969 145 Votes </li></ul><ul><ul><li>Provide multiple currency support in inventory </li></ul></ul><ul><li>8 - Enhancement 92579 110 Votes </li></ul><ul><ul><li>Provide transaction detail for GL transfer </li></ul></ul><ul><li>9 - Enhancement 304457 103 Votes </li></ul><ul><ul><li>Recognize variances as they occur, not just at work </li></ul></ul><ul><ul><li>order close (dup 293914 -1997) </li></ul></ul><ul><li>10 - Enhancement 83627 102 Votes </li></ul><ul><ul><li>Provide category sub-totals in Sub-Inventory Value Report </li></ul></ul>
    10. 10. <ul><li>“ Changing Costing Method from Average to Standard” </li></ul><ul><li>Doug Volz </li></ul><ul><li>KPMG Consulting </li></ul>
    11. 11. Changing Cost Method <ul><li>Background </li></ul><ul><ul><li>Changing the costing method for 20 average cost inventory organizations, from average to standard costing. Want to minimize the use of SQL, AND share standard costs. No material overheads are involved. </li></ul></ul>
    12. 12. Changing Cost Method <ul><li>Steps </li></ul><ul><li>1. Freeze all transactions, that is don't create, process any inventory transactions, make sure there are no rows in </li></ul><ul><li>a. RCV_TRANSACTIONS_INTERFACE </li></ul><ul><li>b. MTL_TRANSACTIONS_INTERFACE </li></ul><ul><li>c. MTL_MATERIAL_TRANSACTIONS_TEMP </li></ul><ul><li>d. MTL_MATERIAL_TRANSACTIONS where the costed_flag = 'N' (uncosted material transactions) </li></ul><ul><li>You can also view the Pending transactions in the Accounting Close Cycle screens </li></ul><ul><li>2. Run the Inventory Value Report in each Inventory Organization, to get the average costs and a baseline before you make any changes. </li></ul>
    13. 13. Changing Cost Method <ul><li>Steps </li></ul><ul><li>3. In SQLPLUS, change the primary_cost_method from the value 2 to 1 for every organization, thereby making them all use standard costing. Note that the cost_type_id is the same value as the primary_cost_method. 1 is for standard costing, 2 is for average costing. </li></ul><ul><li>There is NO way to edit this value in MTL_PARAMETERS using the form. The Inventory Parameters form will not let you as transactions exist in the inventory organizations. </li></ul><ul><li>The SQL statement is: </li></ul><ul><ul><ul><li>update mtl_parameters </li></ul></ul></ul><ul><ul><ul><li>set primary_cost_method = 1 </li></ul></ul></ul><ul><ul><ul><li>REM 1 = is for standard costing </li></ul></ul></ul><ul><ul><ul><li>/ </li></ul></ul></ul><ul><ul><ul><li>commit </li></ul></ul></ul><ul><ul><ul><li>/ </li></ul></ul></ul>
    14. 14. Changing Cost Method <ul><li>Steps </li></ul><ul><li>4. In SQLPLUS, change the primary_cost_method from the value 2 to 1 for4. You now need to create the desired costs in the new cost type in the Master Cost Organization, Run the Standard Cost Update in the Cost Master Organization first, and then USE SQL to set the Master_cost_organization_id for all of the other inventory organizations. The sequence is important, as you do not want to run the Standard Cost Update across all of your costing organizations. The inventory adjustments will be WRONG. </li></ul><ul><li>a. Create the needed cost type. When you share standard costs, the child cost organizations do not hold any item costs at all. So you will need to setup a new unimplemented cost type, maybe called 'Old Avg', check on the box for &quot;Multi-Org&quot; so you can use the same identical name and cost_type_id for all of your child costing organizations. Again, the easiest way to do this may be to use the &quot;Copy Costs Across organizations&quot; functionality, copy the desired costs into the Master Cost Organization, or in some other fashion create the desired costs in the Master Cost Organization. </li></ul>
    15. 15. Changing Cost Method <ul><li>Steps </li></ul><ul><li>4. </li></ul><ul><li>b . Use the Standard Cost Update to create your new set of Frozen costs in the Master Cost Inventory Organization. As the master cost organization is probably your Master Inventory Organization, you should not have any inventory onhand quantities and will not have any Standard Cost Inventory Value Adjustments. At any rate, after completion, you will need to run the Inventory GL Transfer, and then Post in the Oracle General Ledger. If you did have accounting entries/adjustments, in the General Ledger, reverse the Journal Batch, as these entries are useless and the inventory adjustments are incorrect. </li></ul>
    16. 16. Changing Cost Method <ul><li>Steps </li></ul><ul><li>4. </li></ul><ul><li>c. You MUST use SQL to change the master cost organization parameter in MTL_PARAMETERS for all of the non-Master Cost organizations, the Inventory Parameters form will NOT let you do this. </li></ul><ul><li>The SQL is: </li></ul><ul><ul><ul><li>update mtl_parameters mp </li></ul></ul></ul><ul><ul><ul><li>set mp.cost_organization_id = </li></ul></ul></ul><ul><ul><ul><li>(select mp2.organization_id from mtl_parameters mp2 </li></ul></ul></ul><ul><ul><ul><li>where mp.organization_code = 'GLO') </li></ul></ul></ul><ul><ul><ul><li>and mp.organization_code != 'GLO' </li></ul></ul></ul><ul><ul><ul><li>/ </li></ul></ul></ul><ul><ul><ul><li>commit </li></ul></ul></ul><ul><ul><ul><li>/ </li></ul></ul></ul><ul><li>(Note, edit the above statement for the correct value for the organization code for your master cost organization, such as MTR, GLO, MST, etc.) </li></ul>
    17. 17. Changing Cost Method <ul><li>Steps </li></ul><ul><li>5. Rerun the Inventory Value Report in each Inventory Organization, to get the new Frozen Standard costs, so you can manually compare the &quot;Old Avg“ costs and the new common standard costs and make a manual General Ledger journal entry to correct the inventory/stock balances. </li></ul><ul><li>6. Once the inventory values are confirmed, and the system is tested with a few misc. inventory issues/receipts, let the users back on to the system. </li></ul>
    18. 18. Open Discussion <ul><li>R11i Discussion </li></ul><ul><ul><li>R11i upgrade story </li></ul></ul><ul><ul><li>R11i implementation story </li></ul></ul><ul><ul><li>Features, functionality, specific problems and work-arounds </li></ul></ul><ul><ul><li>Tars and patches </li></ul></ul><ul><ul><li>Missing functionality </li></ul></ul>
    19. 19. <ul><li>SIG Business </li></ul>
    20. 20. SIG Mission Statement <ul><li>The mission of the ”Cost and Performance Management” SIG is to meet the needs and interests of the user community in the areas of cost and performance management by providing an open forum for the exchange of ideas, and communicating issues and problems shared by the group. </li></ul><ul><li>As Oracle has expanded its product offerings, we now cover topics of interest as they relate to the Oracle Activity Based Management (Oracle ABM), Oracle Balanced Score Card (Oracle OBC), Cost Management applications, and performance reporting tools. </li></ul>
    21. 21. SIG Business <ul><li>We need you! </li></ul><ul><li>Ideas for future meetings </li></ul><ul><li>Guest presenters </li></ul><ul><li>SIG officer election </li></ul>
    22. 22. Closing Comments <ul><li>SIG e-mail address cost@oaug.com </li></ul><ul><li>Contact Information </li></ul><ul><ul><li>George L. Somogyi, Arthur Andersen, LLP </li></ul></ul><ul><ul><li>Telephone: 312-931-8937 </li></ul></ul><ul><ul><li>E-mail: [email_address] </li></ul></ul>

    ×