Oracle Manufacturing Costing docm Manufacturing Costing Manufacturing Costing Manufacturing Costing

1. Day 1
ü Receipt
Accounting
ü Cost Accounting
Cost Management Cloud | Workshop Agenda
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Day 4
ü Supply Chain Financial
Orchestration
Day 2
ü Discrete
Manufacturing Costing
ü Process Manufacturing
Costing
Day 3
ü Costing of Fulfillment
Flows
ü Landed Cost
Management

2. Cost Management Cloud
Manufacturing Costing
Vinit Poddar
Product Management Director
Oracle Development

3. The following is intended to outline our general product direction. It is intended for information purposes
only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or
functionality, and should not be relied upon in making purchasing decisions. The development, release,
timing, and pricing of any features or functionality described for Oracle’s products may change and remains
at the sole discretion of Oracle Corporation.
Statements in this presentation relating to Oracle’s future plans, expectations, beliefs, intentions and
prospects are “forward-looking statements” and are subject to material risks and uncertainties. A detailed
discussion of these factors and other risks that affect our business is contained in Oracle’s Securities and
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under the heading “Risk Factors.” These filings are available on the SEC’s website or on Oracle’s website
at http://www.oracle.com/investor. All information in this presentation is current as of September 2019 and
Oracle undertakes no duty to update any statement in light of new information or future events.
Safe harbor statement
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4. Agenda
• Manufacturing Costing Overview
• Discreet Manufacturing Costing
• Process Manufacturing Costing
• Reports

5. Overview | Manufacturing Process
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Cost Planning features
Input
• Purchased
Components
(Subassemblies)
Process
• Resource
Consumption
Output
• Finished
Product
Typical Manufacturing Process
Estimate standard cost
for purchased items.
Estimate rates for resource
usage and overhead
absorptions.
Calculate rolled-up cost of
finished product.

6. Overview | Application Process
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Define Items
Define Item
Structure*
Create Work
Definition
Publish
Standard Cost
Create Work
Order
Execute Order
Transfer and
Generate
Costing
Create
Accounting
Review Work
Order Costs
ü Costing Deep Dive
* Not required for process manufacturing

7. Overview | Cost Estimation
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Work
Definitions
Work Definition Name: Primary
Version 1
As of Date: 1-Apr-15
Production Priority 2
Costing Priority 1
Input Items
Resources
Work Definition: Alternate
Work Definition: Alternate 1
Select
work
definitions
based
on
scenario
criteria
Standard Cost Estimation
Work Definition Criteria
Costing Priority 1
As of Date 1-Apr-15
Input/Buy item costs Resource and
Overhead Rates
Cost Rollup
Pass the
criteria
Get Work
Definition
Standard Cost for Sub
Assemblies/ Product

8. Recap | Configuration
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InFusion Corporation
InFusion US1 LE
[BSV = 101]
InFusion US2 LE
[BSV = 102]
InFusion UK LE
[BSV = 201]
InFusion US1
Business Unit
InFusion US2
Business Unit
InFusion UK
Business Unit
InFusion US Ledger
[USD, Corp COA, US GAAP]
InFusion UK Ledger
[GBP, Corp COA,
IFRS]
InFusion UK Ledger
Secondary [USD,
Corp COA, US GAAP]
Item
Perpetual
Average Cost
Standard Cost Actual Cost
Primary Cost
Book
Secondary
Cost Book
Reporting
Cost Book
Periodic
Average Cost
Periodic Cost
Book

9. Agenda
• Manufacturing Costing Overview
• Discreet Manufacturing Costing
• Process Manufacturing Costing
• Reports

10. Discreet Manufacturing Costing | Use Case
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Packing
1 Unit
Packing
Material
Packer
1 Hr / Unit
Plant
Overhead
Testing
Assembling
Tablet
Mother Board
1 Unit
Screen
1 Unit
Frame
2 Units
Assembler
1 Hr / Unit
Machine
1 Hr / Unit
Tester
1 Hrs / Unit
Material
Resource
Electricity
Overhead 9% Material Cost

11. Discreet Manufacturing Costing | Work Order Cost | Standard
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WIP Material Issue
WIP Valuation 40 Dr
Inventory 40 Cr
WIP Valuation 30 Dr
Inventory 30 Cr
WIP Valuation 20 Dr
Inventory 20 Cr
WIP Valuation 5 Dr
Inventory 5 Cr
WIP Resource Charging
WIP Valuation 50 Dr
Resource Absorption 50 Cr
WIP Valuation 30 Dr
Resource Absorption 30 Cr
WIP Valuation 30 Dr
Resource Absorption 30 Cr
WIP Valuation 12.50 Dr
Resource Absorption 12.50 Cr
WIP Product Completion
Inventory Valuation 95 Dr
WIP Valuation 95 Cr
Inventory Valuation 105 Dr
WIP Valuation 105 Cr
Inventory Valuation 30 Dr
WIP Valuation 30 Cr
Inventory Valuation 8.55 Dr
Material O/H Absorption 8.55 Cr
Estimated Costs:
Material = 40 + 30 + 20 + 5 = 95
Labor = 50 + 30 + 25 = 105
Machine = 30
Material Overhead = 9% X 95 =
8.55
WIP Job Close (Accounts for any
Variance)
WIP Valuation 12.50 Dr
Efficiency Variance 12.50 Cr
Component Cost Resource
Mother Board –
1*40 (40)
Screen – 1*30 (30)
Frame – 2*10 (20)
Packing – 1*5 (5)
Assembler – 1*50 (50)
Machine – 1*30 (30)
Tester – 2*15 (30)
Packer – 1*25 (25)
Material
Overhead –
9% of
Material
Cost
Overhead
Actual Costs:
Material = 40 + 30 + 20 + 5 = 95
Labor = 50 + 30 + 12.50 = 92.50
Machine = 30
Material Overhead = 9% X 95 =
8.55
Mother Board –
1*40 (40)
Screen – 1*30 (30)
Frame – 2*10 (20)
Packing – 1*5 (5)
Machine – 1*30 (30)
Tester – 2*15 (30)
Packer – 0.5*25 (12.50)
Material
Overhead –
9% of
Material
Cost
Budget
Actual
Assembler – 1*50 (50)

12. Discreet Manufacturing Costing | Work Order Cost | Actual / Average
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WIP Material Issue *
WIP Valuation 40 Dr
Inventory 40 Cr
WIP Valuation 30 Dr
Inventory 30 Cr
WIP Valuation 20 Dr
Inventory 20 Cr
WIP Valuation 5 Dr
Inventory 5 Cr
WIP Resource Charging
WIP Valuation 50 Dr
Resource Absorption 50 Cr
WIP Valuation 30 Dr
Resource Absorption 30 Cr
WIP Valuation 30 Dr
Resource Absorption 30 Cr
WIP Valuation 12.50 Dr
Resource Absorption 12.50 Cr
WIP Product Completion
Inventory Valuation 95 Dr
WIP Valuation 95 Cr
Inventory Valuation 92.50 Dr
WIP Valuation 92.50 Cr
Inventory Valuation 30 Dr
WIP Valuation 30 Cr
Inventory Valuation 8.55 Dr
Material O/H Absorption 8.55 Cr
Estimated Costs:
Material = 40 + 30 + 20 + 5 = 95
Labor = 50 + 30 + 25 = 105
Machine = 30
Material Overhead = 9% X 95 =
8.55
WIP Job Close (Accounts for any
Variance)
No Accounting
Resource
Assembler – 1*50 (50)
Machine – 1*30 (30)
Tester – 2*15 (30)
Packer – 1*25 (25)
Material
Overhead –
9% of
Material
Cost
Overhead
Actual Costs:
Material = 40 + 30 + 20 + 5 = 95
Labor = 50 + 30 + 12.50 = 92.50
Machine = 30
Material Overhead = 9% X 95 =
8.55
Mother Board –
1*40 (40)
Screen – 1*30 (30)
Frame – 2*10 (20)
Packing – 1*5 (5)
Machine – 1*30 (30)
Tester – 2*15 (30)
Packer – 0.5*25 (12.50)
Material
Overhead –
9% of
Material
Cost
Budget
Actual
Assembler – 1*50 (50)
* In case charges like Non recoverable
tax, Invoice price variance, tax price
variance, overheads are available on
the item cost, the WIP valuation will
also be loaded with the corresponding
costs.

13. Agenda
• Manufacturing Costing Overview
• Discreet Manufacturing Costing
• Process Manufacturing Costing
• Reports

14. Process Manufacturing Costing | Use Case
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Centrifugalizing
Plant
Overhead
Evaporation
Shredding
Raw Sugar
Raw
Material
Resource
Electricity
Overhead 9% Material Cost
Purification Drying & Cooling
Sugar
Cane
9,479 KG
Lime
Stone
1,185 KG
Sulphur
Di Oxide
5 KG
Products
&
By-product
Trash
47 KG
Press Mud
285 KG 1,000 KG
Crusher
Mills
2 Hr/Batch
Labor
1 Hr/Batch
Rotary
Filter
4 Hr/Batch
Labor
2 Hr/Batch
Vacuum
Pan
1 Hr/Batch
Labor
1 Hr/Batch
Centrifugal
1 Hr/Batch
Labor
1 Hr/Batch
Drier
2 Hr/Batch
Labor
1 Hr/Batch
Raw Sugar
Molasses
427 KG

15. Process Manufacturing Costing | Important Links
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Process Manufacturing Introduction
Process Manufacturing Overview and Costing – Session 1
Process Manufacturing Overview and Costing – Session 2

16. Agenda
• Manufacturing Costing Overview
• Discreet Manufacturing
• Process Manufacturing
• Reports

17. Reports | Work Order Costs | Summary
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18. Reports | Work Order Costs | Details
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19. Reports | Work Order Costs | Variance
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20. Reports | WIP Inventory Valuation
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21. Thank You
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