Peoplesoft Inventory Costing Version 1.1


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Thanks to Lowes Project from Capgemini. Learn from this project peoplesoft Inventory and costing module prepared ppt by own after lowes project.

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Peoplesoft Inventory Costing Version 1.1

  1. 1. Peoplesoft Inventory and Costing 9.1 Senthil kumar Janakiraman Peoplesoft Functional Consultant email Id: Together. Free your energies
  2. 2. Peoplesoft Inventory and Costing 9.1 • Overview of Inventory & Costing • Workflow • Configuration Setups • Transaction Flow • Reports
  3. 3. Overview of Inventory & Costing Inventory:- PeopleSoft Inventory enables you to Increase your Reduce your Inventory Accuracy Carrying Costs Customer Service Levels Labour Costs Inventory Write-offs PeopleSoft Inventory helps you make faster, more accurate decisions, which is critical in todays complex global inventory environments. Costing:- PeopleSoft Cost Management supports a variety of inventory costing methods that enable you to effectively Track Costs in Production as well as in your Finished goods supply chain. It also enables you to easily perform Revaluations, Analyze manufacturing performance and Perform Cost Simulations.
  4. 4. Peoplesoft Inventory Features  Define inventory business units independent of your general ledger.  Use a multilevel storage structure to provide flexibility and simplify transaction processing.  Provide ability to drive inventory balances negative and reconcile discrepancies. Stock and Location Replenishment :- • You need to know when your supply items are getting low. With powerful automation capabilities and intuitive data screens, it’s easy to replenish materials with PeopleSoft Inventory. You can:  Generate a replenishment requisition based on current stocking levels, economic order quantity (EOQ), and reorder point.  Use flexible, ad-hoc requisitioning for backorder management.  Track reorder points based on multiple criteria.
  5. 5. Peoplesoft Costing Management Features • Item Costing:- Cost Management provides full item costing functionality. - Add costs in addition to material, labor, machine, and conversion. - Calculate additional costs based on percentage of material costs, percentage of total costs, or amount per unit. - Establish transfer prices or mark-up percentages for items transferred at different costs to other business units. • Landed Costs: – To track the complete cost of an item, you can include the landed cost charges in the item’s cost. Landed cost charges can include expenses such as freight, insurance, duty, and handling. - Specify the calculation and allocation method for each charge define at landed cost charges for items. - Create cost templates specify item, item category, vendor, vendor location, ship-to ID, and purchasing business unit. - Directly associate, in PeopleSoft Purchasing, cost templates and individual charges with a purchase order header or purchase order schedule • Support of Multiple Costing Methods :– - Support the need for financial, governmental, and management reporting, you can maintain multiple cost books within a PeopleSoft Inventory business unit in those environments where you buy and sell inventory with no manufacturing. - Items in each cost book, you define a profile, consisting of a receipt cost method, a cost flow, and a deplete cost method, to value inventory transactions involving those items. - Costing approach you choose can be independent of how the inventory is physically moved. Methods are Non-cost, Standard, FIFO actual, LIFO actual, By specific lot ID and By specific serial ID, Perpetual weighted average, Periodic weighted average and Retroactive perpetual average. • Inventory Accounting :- Define the accounting entries for each transaction, transferring from one location to another location, Create Costed Transaction records for all inventory BU’s and IntraUnit processing to create balancing entries for transfers between Chartfields within the same BU.
  6. 6. Inventory Workflow Sales Processing Invoicing Sales Return Processing Inventory Control INVENTORY Purchasing Return Processing Purchasing Processing Receiving and Billing
  7. 7. Inventory Integration with Other Modules PeopleSoft Purchasing:- Requisition Created & Send from Product SupplyConfiguror Order Mgmt Planning Purchasing eProcurement Purchasing to Inventory as a Material Stock request if stock is available. If stock is unavailable, you can add the requisition to a PO and dispatch it to a vendor in Purchasing. Items on a PO are received from the vendor in Peoplesoft purchasing, the items can be put away in Peoplesoft Inventory BU using the Putaway processes.Maintenance Manufacturing PeopleSoft Payables:- The Landed Cost Extraction process inManagement PeopleSoft Payables can pass cost adjustments to PeopleSoft Cost Management for the stock putaway in PeopleSoft Inventory . Cost Peoplesoft Order Management:- When PeopleSoft Inventory shipsEngineering Management the items, the data is updated on the sales order. PeopleSoft Inventory also sends sales order information to PeopleSoft Billing for invoice creation. Peoplesoft Billing:- From PeopleSoft Order Management, can bePromotations Peoplesoft passed from PeopleSoft Inventory to PeopleSoft Billing for invoice creation, Mgmt or detailed pricing can be passed using miscellaneous charge codes, Inventory General Ledger including discounts, surcharges, freight, taxes, and value-added tax (VAT). Peoplesoft Cost Management:- Landed Cost Extraction Process in Demand Peoplesoft Payables can pass cost adjustments to Peoplesoft cost Planning management. Calculates the cost and creates the accounting entries to Commitment Control record Putaways, shipments, adjustments and other material movements. PeopleSoft Project Costing:- Creating a material stock request, you Quality can enter information to be used by PeopleSoft Project Costing Peoplesoft General Ledger:- Accounting entries recording the activity in Peoplesoft inventory are retrieved from Cost Management create Journal entries that are posted in the GL Business Unit. Inv Policy Projects Billing Projects Planning
  8. 8. Configuration Setups - Inventory Business Unit Set Ups - Inventory Structure Tables Set Ups - Putaway Options Set Ups
  9. 9. Inventory Business Unit Definition
  10. 10. Inventory Business Unit Options
  11. 11. Business Unit Options – Shipping Options, Replenishment Options, Revenue and Billing Defaults, RMADefaults and Estimated Shipment Definition.
  12. 12. Inventory Business Unit Counters
  13. 13. Inventory Business Unit Books Note: - Associate the cost book with a PeopleSoft Inventory business unit, ledger, and ledger group.
  14. 14. Inventory Structure Tables Set Ups • Storage Location Types • Inventory Status Types • Item Storage codes • Return Type codes • Item Packaging Codes • Backlog Reason codes • Hold Codes • Transfer Attributes Defaults • Storage Rules
  15. 15. Inventory Structure Tables setup
  16. 16. Putaway Setups
  17. 17. Common Configuration Setups for Inventory & Costing :- Define Units of Measures UOM Class UOM UOM Code Base UOM Quantity Each EA Yes Quantity Box BX No Quantity Gram GR No Weight Kilogram KG No Quantity Dozen DZ No  Define Freights Carriers DHL  Define Category Codes and Category Sets  Define Catalog Groups  Define Suppliers Suppliers Newyork Paris India  Define Buyers Buyer Category Ship to Larry Hardware Paris Raman Software India  Define Items
  18. 18. Inventory and Costing Transaction Flow Step-1 Creation of Online Purchase Order Step-2 Creation of Goods Receipt Note Step-3 Inventory Putaway Process Step-4 Creation on PO – Receipt Voucher Step-5 Land Cost Extract Process Step-6 Generate Costing Transactions and Creating Accounting Entries Step-7 Review the Cost Item Balance Step-8 Creating Adjustment Inventory Transaction – Interunit Transfer - Decrease Inventory Adjustment - Increase Inventory Adjustment
  19. 19. Step-1 Creation of Online Purchase OrderNavigation Path: Purchasing -> Purchase Order-> Add/Update PO’s* After Save PO Bottom it become generates PO ID & PO status became Approved from Open* Click on Dispatch Button it will run Dispatch Process
  20. 20. Run PO Dispatch Process - PODISPPO Status : Dispatched
  21. 21. Step-2 Creation of Goods Receipt Note Navigation Path: Purchasing  Receipts  Add/update Receipts
  22. 22. Process Receipts :- Select Application Process Name: Receiver Interface Push . Receipt Push Inventory.
  23. 23. After getting PO_RECVPUCH Process then review the Receipt Status : Moved Receipt has been processed by RECVPUSH, which creates the Landed Cost Transactions for New Receipts, and may Interface them to PeopleSoft Asset Management, PeopleSoft Inventory, or PeopleSoft Manufacturing.
  24. 24. Step-3 Inventory Putaway Process Navigation Path: Inventory  Putaway Stock  Load Staged Items Navigation Path: Inventory  Putaway Stock  Correct Staged Errors Note: If review any Items showing errors status mostly the storage Location will be blank or not define. Remedy to define the storage location then system will allow to saving.
  25. 25. Stock room Feedback:-Navigation Path: Inventory  Putaway Stock  Stockroom FeedbackNote: After Review and update the actual putaway information based on a putaway planclick on putaway checkbox and click on Top Right Side Putaway Button.
  26. 26. Complete Putaway ProcessNavigation Path: Inventory  Putaway Stock  Complete Putaway
  27. 27. Step-4 Creation on PO – Receipt Voucher  Search from voucher receiver Lookup criteria page enter Receipt No or PO No. and select & click on copy selected lines.  After Enter Invoice no. & Date and save the voucher.  Check Entry status : Postable, Match Status: Ready, Approval Status: Approved and Post Status: Unposted.  Run the Match Process Name: AP_MATCH.  After Match Process Run Status will be change to Matched  Run the Voucher Posting  Review the voucher Post status : Posted
  28. 28. Step-5 Land Cost Extract Process
  29. 29. Step-6 Generate Costing Transactions and Creating Accounting Entries
  30. 30. Transaction Costing and Accounting Line Creation Process flow:- Cost flow for Inventory Transactions:- Inventory Transactions (TRANSATION_INV) Transaction Costing:- Process Name: Transaction_INV Inventory system posts inventory transactions into the Transaction Costing Process TRANSACTION_INV table, from there Peoplesoft Cost Management can assign costs to the Cost Accounting Creation Process transactions and create accounting entries. Accounting Line Creation Process Accounting Line Creation Process flow:- Process Name: CM_ACCTG_LINE The Cost Accounting Creation Process Accounting Entries (CM_CSTACTG) is an application engine process. (CM_ACCTG_LINE) 8. Transaction Costing Process (CM_COSTING). This application engine process picks up these inventory transactions and attaches costs to each transaction based on the item’s cost Profile. Journal Generator Process 9. Accounting Line Creation Process (CM_ALC). This application engine process picks up the calculated costs, creates the accounting entries, and stores the entries in the CM_ACCTG_LINE table. Journal Entries for the General Ledger
  31. 31. Step-7 Review the Cost Item Balance :- Navigation Path: Cost Accounting  Item Costs Review Costs  Item Cost
  32. 32. Step-8 Creating Adjustment Inventory Transaction – Interunit Transfer :- Creating Increase / Decrease Inventory Adjustments - Decrease Inventory Adjustment - Increase Inventory Adjustment Navigation Path: Inventory  Manage Inventory  Adjustments
  33. 33. Generate Costing Transactions:-Process Name: CM_TRANSACTIONSNavigation Path: Cost Accounting  Inventory and Mfg Accounting Create Accounting Entries  Cost AccountingCreation Process Name: CM_CSTACCTG Navigation Path: Cost Accounting  Inventory and Mfg Accounting Create Accounting Entries  Cost Accounting Creation
  34. 34. Peoplesoft Delivery Reports:- Inventory Reports:- - Peoplesoft Inventory Storage Locations – Report Id INS2000 - Peoplesoft Inventory Putaway Plan – Report Id INS3500 - Utilization Type Calculation Report – Report Id INS5100 - Slow Moving Inventory – Report Id INS5200 - Negative Balance Report – Report Id INS5300 - Stock Status Report – Report Id INS5400 - Lot Trace Report – Report Id INC5575 - Inventory Value Report – Report Id INS7000 - Inventory Balance Audit – Report Id INS9090 - Consumer Usage Reconciliation – Report Id INS9070 Costing Report :- -Average Cost Adjustment /PPV – Report Id CMS1000 -Item Cost profiles – Report Id CMS2000 -Overridden Cost Profiles – Report Id CMS2001 -On Hand Value Report – Report Id CMS2010 -Total Purchase Variance – Report Id CMS3010 -Standard Purchase Variance – Report Id CMS3020
  35. 35. How to get Peoplesoft Inventory & Costing Context HelperSenthil Kumar Janakiraman – Functional Consultantemail Id: Together. Free your energies