The document discusses costing structures and methods in Oracle Manufacturing. It defines key costing concepts like cost elements, sub-elements, activities, and basis types used to assign costs. It also covers average costing updates, cost recognition processes, and important reports for analyzing costs and margins.
The objective of this white paper is to assist users in better understanding and troubleshooting of discrete job closure issues. Additionally, common month end issues are addressed. When material and/or resource transactions are stuck, discrete job closure cannot be accomplished.
The objective of this white paper is to assist users in better understanding and troubleshooting of discrete job closure issues. Additionally, common month end issues are addressed. When material and/or resource transactions are stuck, discrete job closure cannot be accomplished.
This document shows the complete Pick,Pack and Ship Confirm Process in Oracle Apps using Public APIs(includes sample codes and table names from various sources)
This presentation is about how to Create Drop Ship Sales Order Across the Operating Units in R12i and then how to perform Inter company Transactions.
Here I will discuss following Process
1.Drop Ship SO Creation
2.PO Creation
3.Receiving against PO
4.AP/AR Invoice Creation
5.Intercompany Invoice Creation
Each ERP implementation has a set of main objectives, and one of them is to obtain Cost Accounting or Managerial Report for specific line of business.
As SAP, PeopleSoft or JD Edwards have such Cost Accounting module, we developed and offer a specialized module for Oracle Applications.
This document shows the complete Pick,Pack and Ship Confirm Process in Oracle Apps using Public APIs(includes sample codes and table names from various sources)
This presentation is about how to Create Drop Ship Sales Order Across the Operating Units in R12i and then how to perform Inter company Transactions.
Here I will discuss following Process
1.Drop Ship SO Creation
2.PO Creation
3.Receiving against PO
4.AP/AR Invoice Creation
5.Intercompany Invoice Creation
Each ERP implementation has a set of main objectives, and one of them is to obtain Cost Accounting or Managerial Report for specific line of business.
As SAP, PeopleSoft or JD Edwards have such Cost Accounting module, we developed and offer a specialized module for Oracle Applications.
Perpetual and Periodic inventory valuation methods are discussed in this presentation. The systems are explained using the different valuations methods (FIFO, LIFO and AVG).
Understand the various aspects of maintain inventory records, that handles your two principal financial statements ie Income Statement and Balance Sheet.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc
Hello Friends!
This is the best ppt on 'Production Cost Concepts'. I tried to include all the main topics that will also be helpful for university exams. All the topics has been explained up to the point along with the required formula.
I also tried to keep the ppt as simple as possible not including any complex language. Hope you will clear all your doubts and will also learn something new in the field of Manufacturing Technology.
Learn and Enjoy!
#Production #Productuctioncost #manufacturing #technology
Thank You!
Company 1Company #1Income StatementBalance SheetAll numbers in thoLynellBull52
Company 1Company #1Income StatementBalance SheetAll numbers in thousandsAll numbers in thousandsRevenue20182017Period Ending20182017Total Revenue14,134,73212,866,757Current AssetsCost of Revenue9,510,2388,668,505Cash And Cash Equivalents1,290,2941,111,599Gross Profit4,624,4944,198,252Short Term Investments512-Operating ExpensesNet Receivables87,86875,154Selling General and Administrative2,576,0982,395,608Inventory1,641,7351,512,886Total Operating Expenses12,086,33611,064,113Other Current Assets11,84713,642Operating Income or Loss2,048,3961,802,644Total Current Assets3,151,1572,813,049Income from Continuing OperationsLong Term Investments7121,288Total Other Income/Expenses Net-7,676-16,488Property Plant and Equipment2,382,4642,328,048Earnings Before Interest and Taxes2,048,3961,802,644Other Assets187,718166,966Interest Expense-18,847-19,569Deferred Long Term Asset Charges--Income Before Tax2,040,7201,786,156Total Assets5,722,0515,309,351Income Tax Expense677,967668,502Current LiabilitiesNet Income1,362,7531,117,654Accounts Payable1,059,8441,021,735Short/Current Long Term Debt84,973-Other Current Liabilities9,90224,559Total Current Liabilities1,926,4021,752,506Long Term Debt311,994396,493Other Liabilities434,347412,335Total Liabilities2,672,7432,561,334Stockholders' EquityPreferred Stock--Common Stock3,7963,919Retained Earnings2,071,4001,801,138Treasury Stock-318,252-272,755Capital Surplus1,292,3911,215,806Total Stockholder Equity3,049,3082,748,017Net Tangible Assets3,049,3082,748,017
Company 2Company #2Income StatementBalance SheetAll numbers in thousandsAll numbers in thousandsRevenue20182017Period Ending20182017Total Revenue38,972,93435,864,664Current AssetsCost of Revenue27,831,17725,502,167Cash And Cash Equivalents3,030,2002,758,477Gross Profit11,141,75710,362,497Short Term Investments-506,165Operating ExpensesNet Receivables860,000327,166Selling General and Administrative6,923,5646,375,071Inventory4,579,0004,187,243Total Operating Expenses34,754,74131,877,238Other Current Assets-12,217Operating Income or Loss4,218,1933,987,426Total Current Assets8,469,2008,485,727Income from Continuing OperationsLong Term Investments--Total Other Income/Expenses Net-44,982-130,838Property Plant and Equipment5,255,2005,006,053Earnings Before Interest and Taxes4,218,1933,987,426Goodwill97,600100,069Interest Expense-8,860-64,295Intangible Assets-144,900Income Before Tax4,173,2113,856,588Other Assets504,000321,266Income Tax Expense1,113,4131,248,640Deferred Long Term Asset Charges-6,558Net Income3,059,7982,607,948Total Assets14,326,00014,058,015Current LiabilitiesAccounts Payable2,644,1002,488,373Short/Current Long Term Debt--Other Current Liabilities-1,429,136Total Current Liabilities5,531,3005,125,537Long Term Debt2,233,6002,230,607Other Liabilities1,512,5001,331,645Total Liabilities9,277,4008,909,706Stockholders' EquityPreferred Stock--Common Stock5,048,600628,009Retained Earnings-4,962,159Treasury Stock--441,859Capital Surplus--Other Stockholder Equity--4 ...
Different techniques of costing in strategic management accounting discussed.
Marginal costing,budgetary control, standard costing,Activity based costing,responsibility costing.
Which of the following is an advantage of corporations relative to.docxphilipnelson29183
Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?
Lower taxes.
Most common form of organization.
Reduced legal liability for investors.
Harder to transfer ownership.
The group of users of accounting information charged with achieving the goals of the business is its
auditors.
investors.
creditors.
managers.
Which of the following financial statements is concerned with the company at a point in time?
Statement of cash flows.
Retained Earnings statement.
Balance sheet.
Income statement.
An income statement
presents the revenues and expenses for a specific period of time.
reports the changes in assets, liabilities, and stockholders’ equity over a period of time.
reports the assets, liabilities, and stockholders’ equity at a specific date.
summarizes the changes in retained earnings for a specific period of time.
The most important information needed to determine if companies can pay their current obligations is the
projected net income for next year.
relationship between current assets and current liabilities.
relationship between short-term and long-term liabilities.
net income for this year.
A liquidity ratio measures the
income or operating success of a company over a period of time.
ability of a company to survive over a long period of time.
percentage of total financing provided by creditors.
short-term ability of a company to pay its maturing obligations and to meet unexpected needs for
cash.
The convention of consistency refers to consistent use of accounting principles
among firms.
among accounting periods.
throughout the accounting periods.
within industries.
Horizontal analysis is also known as
vertical analysis.
trend analysis.
linear analysis.
common size analysis.
Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time
to determine the amount and/or percentage increase or decrease that has taken place.
that has been arranged from the lowest number to the highest number.
that has been arranged from the highest number to the lowest number.
to determine which items are in error.
Vertical analysis is a technique that expresses each item in a financial statement
starting with the highest value down to the lowest value.
in dollars and cents.
as a percent of the item in the previous year.
as a percent of a base amount.
Process costing is used when
production is aimed at filling a specific customer order.
dissimilar products are involved.
the production process is continuous.
costs are to be assigned to specific jobs.
An important feature of a job order cost system is that each job
has its own distinguishing characteristics.
must be completed before a new job is accepted.
consists of one unit of output.
must be similar to previous jobs completed.
In a process cost system, product costs are summarized:
after each unit is produced..
Which of the following is an advantage of corporations relative to.docxalanfhall8953
Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?
Reduced legal liability for investors.
Harder to transfer ownership.
Lower taxes.
Most common form of organization.
The group of users of accounting information charged with achieving the goals of the business is its
managers.
auditors.
investors.
creditors.
Which of the following financial statements is concerned with the company at a point in time?
Retained Earnings statement.
Income statement.
Statement of cash flows.
Balance sheet.
An income statement
reports the changes in assets, liabilities, and stockholders’ equity over a period of time.
presents the revenues and expenses for a specific period of time.
reports the assets, liabilities, and stockholders’ equity at a specific date.
summarizes the changes in retained earnings for a specific period of time.
The most important information needed to determine if companies can pay their current obligations is the
relationship between short-term and long-term liabilities.
projected net income for next year.
net income for this year.
relationship between current assets and current liabilities.
A liquidity ratio measures the
ability of a company to survive over a long period of time.
short-term ability of a company to pay its maturing obligations and to meet unexpected needs for cash.
percentage of total financing provided by creditors.
income or operating success of a company over a period of time.
The convention of consistency refers to consistent use of accounting principles
within industries.
among accounting periods.
among firms.
throughout the accounting periods.
Horizontal analysis is also known as
linear analysis.
vertical analysis.
common size analysis.
trend analysis.
Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time
to determine the amount and/or percentage increase or decrease that has taken place.
that has been arranged from the highest number to the lowest number.
that has been arranged from the lowest number to the highest number.
to determine which items are in error.
Vertical analysis is a technique that expresses each item in a financial statement
starting with the highest value down to the lowest value.
as a percent of the item in the previous year.
as a percent of a base amount.
in dollars and cents.
Process costing is used when
production is aimed at filling a specific customer order.
dissimilar products are involved.
costs are to be assigned to specific jobs.
the production process is continuous.
An important feature of a job order cost system is that each job
has its own distinguishing characteristics.
must be completed before a new job is accepted.
consists of one unit of output.
must be similar to previous jobs completed.
In a process cost system, product costs are summarized:
on job cost sheets.
w.
The Art of the Pitch: WordPress Relationships and SalesLaura Byrne
Clients don’t know what they don’t know. What web solutions are right for them? How does WordPress come into the picture? How do you make sure you understand scope and timeline? What do you do if sometime changes?
All these questions and more will be explored as we talk about matching clients’ needs with what your agency offers without pulling teeth or pulling your hair out. Practical tips, and strategies for successful relationship building that leads to closing the deal.
Connector Corner: Automate dynamic content and events by pushing a buttonDianaGray10
Here is something new! In our next Connector Corner webinar, we will demonstrate how you can use a single workflow to:
Create a campaign using Mailchimp with merge tags/fields
Send an interactive Slack channel message (using buttons)
Have the message received by managers and peers along with a test email for review
But there’s more:
In a second workflow supporting the same use case, you’ll see:
Your campaign sent to target colleagues for approval
If the “Approve” button is clicked, a Jira/Zendesk ticket is created for the marketing design team
But—if the “Reject” button is pushed, colleagues will be alerted via Slack message
Join us to learn more about this new, human-in-the-loop capability, brought to you by Integration Service connectors.
And...
Speakers:
Akshay Agnihotri, Product Manager
Charlie Greenberg, Host
UiPath Test Automation using UiPath Test Suite series, part 4DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 4. In this session, we will cover Test Manager overview along with SAP heatmap.
The UiPath Test Manager overview with SAP heatmap webinar offers a concise yet comprehensive exploration of the role of a Test Manager within SAP environments, coupled with the utilization of heatmaps for effective testing strategies.
Participants will gain insights into the responsibilities, challenges, and best practices associated with test management in SAP projects. Additionally, the webinar delves into the significance of heatmaps as a visual aid for identifying testing priorities, areas of risk, and resource allocation within SAP landscapes. Through this session, attendees can expect to enhance their understanding of test management principles while learning practical approaches to optimize testing processes in SAP environments using heatmap visualization techniques
What will you get from this session?
1. Insights into SAP testing best practices
2. Heatmap utilization for testing
3. Optimization of testing processes
4. Demo
Topics covered:
Execution from the test manager
Orchestrator execution result
Defect reporting
SAP heatmap example with demo
Speaker:
Deepak Rai, Automation Practice Lead, Boundaryless Group and UiPath MVP
Key Trends Shaping the Future of Infrastructure.pdfCheryl Hung
Keynote at DIGIT West Expo, Glasgow on 29 May 2024.
Cheryl Hung, ochery.com
Sr Director, Infrastructure Ecosystem, Arm.
The key trends across hardware, cloud and open-source; exploring how these areas are likely to mature and develop over the short and long-term, and then considering how organisations can position themselves to adapt and thrive.
Neuro-symbolic is not enough, we need neuro-*semantic*Frank van Harmelen
Neuro-symbolic (NeSy) AI is on the rise. However, simply machine learning on just any symbolic structure is not sufficient to really harvest the gains of NeSy. These will only be gained when the symbolic structures have an actual semantics. I give an operational definition of semantics as “predictable inference”.
All of this illustrated with link prediction over knowledge graphs, but the argument is general.
Dev Dives: Train smarter, not harder – active learning and UiPath LLMs for do...UiPathCommunity
💥 Speed, accuracy, and scaling – discover the superpowers of GenAI in action with UiPath Document Understanding and Communications Mining™:
See how to accelerate model training and optimize model performance with active learning
Learn about the latest enhancements to out-of-the-box document processing – with little to no training required
Get an exclusive demo of the new family of UiPath LLMs – GenAI models specialized for processing different types of documents and messages
This is a hands-on session specifically designed for automation developers and AI enthusiasts seeking to enhance their knowledge in leveraging the latest intelligent document processing capabilities offered by UiPath.
Speakers:
👨🏫 Andras Palfi, Senior Product Manager, UiPath
👩🏫 Lenka Dulovicova, Product Program Manager, UiPath
JMeter webinar - integration with InfluxDB and GrafanaRTTS
Watch this recorded webinar about real-time monitoring of application performance. See how to integrate Apache JMeter, the open-source leader in performance testing, with InfluxDB, the open-source time-series database, and Grafana, the open-source analytics and visualization application.
In this webinar, we will review the benefits of leveraging InfluxDB and Grafana when executing load tests and demonstrate how these tools are used to visualize performance metrics.
Length: 30 minutes
Session Overview
-------------------------------------------
During this webinar, we will cover the following topics while demonstrating the integrations of JMeter, InfluxDB and Grafana:
- What out-of-the-box solutions are available for real-time monitoring JMeter tests?
- What are the benefits of integrating InfluxDB and Grafana into the load testing stack?
- Which features are provided by Grafana?
- Demonstration of InfluxDB and Grafana using a practice web application
To view the webinar recording, go to:
https://www.rttsweb.com/jmeter-integration-webinar
Assuring Contact Center Experiences for Your Customers With ThousandEyes
Oracle R12.1.3 Costing Overview
1. Costing
A cost structure is the collection of definitions and methods used to cost inventory, bills of
material, and work in process.
• Organizations
• Cost organizations and shared costs
• Cost elements
• Sub-elements
• Activities
• General Ledger accounts
Inventory Organizations: In Oracle Manufacturing, each inventory organization must have a
cost structure that you define.
Cost Organizations and Shared Costs: You can share costs across standard cost organizations
as long as the child cost organizations have not enabled WIP.
You cannot share costs across average costing organizations.
Cost Elements:
1. Material - The raw material/component cost of the component item.
2. Material Overhead - The overhead cost of material, calculated as a percentage of
the total cost, or as a fixed charge per item, lot, or activity.
3. Resource - Direct costs, such as people (labor), machines, space, or miscellaneous
charges, required to manufacture products
2. Costing
4. Overhead -Overhead is used as a means to allocate department costs or activities. For
example, you can define multiple overhead sub-elements to cover both fixed and
variable overhead, each with its own rate.
5. Outside Processing - This is the cost of outside processing purchased from a supplier.
Sub-elements:
1. Material Sub-elements - Classify your material costs, such as plastic, steel, or aluminum.
Define material sub-elements and assign them to item costs.
2. Material Overhead Sub-elements - Define material overhead sub-elements and assign
them to item costs.
3. Resource Sub-elements
4. Overhead Sub-elements
5. Outside Processing Sub-elements
Note: Negative item costs are not supported in Oracle Cost Management.
Activities: An action or task you perform in a business that uses a resource or incurs cost.
Basis Types: Basis types determine how costs are assigned to the item.
1. Item: Used with material and material overhead sub-elements to assign a fixed amount per
item, generally for purchased components.
2. Lot: Used to assign a fixed lot charge to items or operations.
3. Resource Value: Used to apply overhead to an item, based on the resource value earned
in the routing operation.
3. Costing
Resource value earned in the operation x overhead rate
Resource Units: Used to allocate overhead to an item, based on the number of resource units
earned in the routing operation.
Resource units earned in an operation X overhead rate or amount
Total Value: Used to assign material overhead to an item, based on the total value of the
item.
Changing from Standard to Average Costing
You cannot change the costing method of an organization once transactions have been
performed.
4. Costing
Transactions Details-Mass Changes:
• Mass Editing Item Accounts: Mass edit account assignments for selected items. These
accounts include: Cost of Goods Sold, Encumbrance, Expense, and Sales. You can edit
your account assignments for all items, a category of items, or a specific item.
• Mass Edit Material Cost: Apply new activity rates to item costs, Create new costs and
change costs to a specified amount by a percentage or an absolute amount, Create
new costs by averaging the purchase order price for open purchase orders or historical
purchase order receipts, or actual accounts payable invoice prices for items.
• Mass Edit Material Overhead Cost: To change the overhead cost assigned to items.
Define Item Cost:
• Navigate to the Item Costs window. Choose the Costs button from either the Item
Costs Summary folder window or from the Item Costs Details window.
• Select the cost element
• Select the sub-element
• Select the activity. The default activity you associated with the sub element is the
default.
5. Costing
• Select the basis. The default is the default basis associated with the sub-element.
• Enter a percentage rate or a fixed amount, as appropriate for the basis.
• Save
Viewing Material Transaction Distributions:
• Navigate to the Material Transaction Distributions window.
• Enter the required search criteria.
Viewing WIP Transaction Distributions
• Navigate to the WIP Transaction Distributions window.
• Enter your search criteria.
Viewing WIP Value Summaries
• Navigate to the WIP Value Summary window.
• Select your search criteria.
6. Costing
Error Resubmission:
If you are using Average Inventory Costing, including Project Manufacturing Costing, then
you can resubmit cost transactions that have failed to cost, and projects that have failed to
transfer.
Use: Pending Material Transaction Form
• Navigate to the Find Material Transactions window from the Cost function.
• Select Error from the Costed or the Transferred to Projects drop–down list.
• Navigate to the Costed column of the Reason, Reference tab in the View Material
Transactions window.
Select errored transactions to resubmit as follows:
• All errors: Choose Submit all from the Tools menu
• One error: Place the cursor in the error cell and execute a control–click
• A range of errors: Select one error as above, then move the cursor to the next error and
execute a shift–click.
• Save your work
7. Costing
Average Costing: Under average cost systems, the unit cost of an item is the average value
of all receipts of that item to inventory. Each receipt of material to inventory updates the unit
cost of the item received. Issues from inventory use the current average cost as the unit cost.
Inventory value = average unit cost * quantity
For purchased items, this is a weighted average of the actual procurement cost of an
item.
For manufactured items, this is a weighted average of the cost of all resources and
materials consumed.
Average Cost Updates:
When you update average costs, items in all asset subinventories in your organization
and inventory in in-transit that is owned by your organization are updated (revalued) by new
specified cost.
• Navigate to the Update Average Cost window
• Select the Average cost update in the Type field.
• Optionally, select a Source type for the transaction.
• Select an average cost update Adjustment Account
8. Costing
• If you increase average costs, then debit your subinventory accounts and credit the
specified adjustment account. If you decrease average costs, then the reverse
adjustments are generated.
• If you are updating costs using a percentage change, then enter a default to use as
the percentage change for individual item costs.
• Select the item for the average cost update.
• Select a Cost Group.
Update the total unit average cost. Do one of the following:
• Enter a New Average Cost. This value cannot be negative. On-hand inventory in all
subinventories and intransit are revalued.
• Enter a percentage change in the item's average cost. The item cost is updated by this
percentage value. On-hand inventory in all subinventories and intransit is revalued.
• Enter the amount to increase or decrease the current on-hand inventory value. To
decrease the value, enter a negative amount. However, you cannot enter a value that
drives the inventory value negative.
Note : You cannot change the average cost value by this method unless the item has
quantity on–hand.
9. Costing
• Open the Value Change tabbed region and review the change in inventory value.
• Optionally, choose Cost Elements to update average costs by element by level.
Transferring Invoice Variance
You can transfer variances between purchase order price and invoice price back to
inventory, from your user-defined adjustment account, usually an IPV account. This lets
you value your inventory at costs as close to actual as possible.
The transfer process picks up only invoices that have been posted to GL to ensure that
the invoices are approved for payment, and that variances can be added back to
inventory.
You can only run the transfer process for one organization at a time.
Request: Transfer Invoice Variance to Inventory Valuation.
10. Costing
Average Cost = (transaction value + current inventory value) / (transaction quantity + current
on-hand quantity)
Cost Updates @
Purchase Order Receipt to Receiving Inspection No
Delivery from Receiving Inspection to Inventory Yes
Purchase Order Receipt to Inventory Yes
Return to Supplier from Receiving No
Return to Supplier from Inventory Yes
Miscellaneous Issue No (if default cost is used)
Miscellaneous Receipt No (if default cost is used)
Shipment Transaction/FOB Shipment: Sending Org No
Shipment Transaction/FOB Shipment:
Receiving Org
Yes
Direct Inter-Organization Transfer: Sending
Org
No
11. Costing
Direct Inter-Organization Transfer: Receiving
Org
Yes
Cycle Count No
Physical Inventory No
Sales Order Shipments No
RMA Receipts Yes
RMA Returns No
Average Cost Update Yes
12. New Features in R12
- Deferred COGS-
You must specify the Deferred COGS Account in the Organization Parameters
window.
Setting Up Revenue / COGS Matching
1. Navigate to the Organization Parameters window and select the Other Accounts
tab.
(N) Inventory > Setup > Organizations > Parameters (T) Other Accounts
2. Enter the Deferred COGS Account. There is no default for this account. Specify a
Deferred COGS Account for each organization.
13. Deferred COGS: How to use this feature of
Oracle Apps R12
Business Process:
In R11i When a Sales order is shipped and interface trip stop is completed. This then generate
following accounting.
Cr Inventory Valuation account Rs. 25000
Dr COGS Account Rs. 25000
In R12 when a sales order is shipped and interface trip stop is completed the following
accounting entries gets generated.
Cr Inventory Valuation account Rs. 25000
Dr Deferred COGS Account Rs. 25000
After the AR invoice is generated and the revenue is recognized, following program will
create COGS recognition transaction. This will reflect a change in the revenue recognition
percentage for a sales order line.
1. Collect Revenue Recognition Information program
Navigation: Cost > COGS Recognition > Collect Revenue Recognition Information
2. Generate COGS Recognition Events: This will create accounting entries as follow
Navigation: Cost > COGS Recognition > Generate COGS Recognition Events
Cr Deferred account Rs. 250 (Actual Revenue %)
Dr COGS Account Rs. 250 (Actual Revenue %)
14. Deferred COGS: How to use this feature of
Oracle Apps R12
Business Process:
With this feature the COGS recognition now requires few extra concurrent requests to be
submitted.
Revenue / COGS Recognition Process Flow
When you ship confirm one or more order lines in Oracle Order Management and then
run the applicable Cost Management cost and accounting processes, the cost of goods
sold associated with the sales order line is immediately debited to a Deferred COGS
account pending the invoicing and recognition of the sales order revenue in Oracle
Receivables.
When Oracle Receivables recognizes all or part of the sales revenue associated with a sales
order line, you run a cost process that calculates the percentage of total billed revenue
recognized. Oracle Inventory then creates a cost recognition transaction that adjusts the
Deferred COGS and regular COGS amount for the order line. The proportion of total
shipment cost that is recognized as COGS will always match the proportion of total billable
quantity that is recognized as revenue.
AR revenue need to be recognized to have COGS recognized
This functionality is not optional as it is mandatory to be used in R12
To make the complete set of transactions visible in the Material Transaction screen, ‘Include
Logical Transaction’ checkbox need to be checked.
15. Deferred COGS: How to use this feature of
Oracle Apps R12
COGS Recognition and Concurrent Processes
The matching and synchronization of the earned and deferred components of sales
order revenue and COGS is accomplished by running the following COGS recognition
concurrent processes at user-defined intervals:
• Record Order Management Transactions (Optional)
• Collect Revenue Recognition Information
• Generate COGS Recognition Events
(N) Cost > COGS Recognition
16. Important Reports
COGS / Revenue Matching Report:
The report displays earned and unearned (deferred) revenue, and cost of goods sold
amounts for sales orders issues specified in the report's run-time parameters. The report
displays shipped sales order and associated sales order lines, and shows the accounts
where the earned and deferred COGS were charged.
Detailed Item Cost Report
Use the Detailed Item Cost Report to analyze item cost details for any cost type.
Discrete Job Value Report
The Discrete Job Value Report - Average Costing assists you in analyzing your standard
discrete jobs and non-standard asset jobs in project and non-project environments.
Elemental Cost Report
Use the Elemental Cost Report to report and summarize item costs by cost element.
17. Important Reports
Elemental Inventory Value Report - by Subinventory
This report displays the current on hand elemental value by subinventory for a given
organization. The report also displays on hand value as of a specified date
Inventory Master Book Report
Use the Inventory Master Book Report for reporting inventory transactions on a periodic
basis to support internal and external auditing.
Margin Analysis Reports
Use the Margin Analysis Reports to report sales revenue, cost of goods sold, and gross
margin information for each item shipped/invoiced within the specified date range.
These report earned revenue versus recognized COGS, and you can print both summary
and detail information.
Period Close Reconciliation Report
This concurrent program and report is used to create summarized transaction records,
the final step in closing your accounting period.
Period Close Pending Transactions Report
The Period Close Pending Transactions Report provides details of transactions preventing
period close.
Receiving Value Report
Use the Receiving Value Report to display item quantity, valuation, and detailed receipt
information for the receiving inspection location
18. Cost Management Integration with Other
Modules
INV Receipt
Trans &
Exp Accr
GENERAL
LEDGER
ACCOUNTS
PAYABLE
PURCHASING
FIXED
ASSETS
ACCOUNTS
RECEIVABLE
INVENTORY
ORDER
ENTRY
WORK IN
Shipment PROCESS
Transactions
Invoice
Info
BILL OF
MATERIAL
MRP
Repair
RMA's
SERVICE
WIP Supply
to MRP
MRP Release
to WIP
S/O Requirements
ENGINEERING
COST
MANAGEMENT
BOM's/Routings for Roll Up
Costs
Values
Trans
ENG Items
planned in
MRP
WIP Consumption &
WIP Completions
Asset
Additions
Invoices/
Payments
Asset Cost
Accum Depr
Depr Exp
PUR provides PO's
and Receipts
Delivery
Trans
Invoices/
Cash Receipt
Trans
Items
BOM's
Items from BOM's
Matl Requirements
Inventory/
WIP Trans
Values Trans
Values INV
Stds Adj
Misc Trans
for Warranty
Repair Parts
CASH
MANAGEMENT
(Bank Recon)
19. Reports
Margin Analysis reports
You can use cost management to determine profitability by analyzing costs
associated with revenue-generating activities.
Use the Margin Analysis Reports to report sales revenue, cost of goods sold, and
gross margin information for each item shipped/invoiced within the specified date
range.
You can print reports in summary and in detail.
The costing method of the organization is independent of margin analysis
reporting and does not affect the procedure to run margin analysis reports.
Gross Margin vs. Gross Profit
Generally, direct cost of goods sold is shipped inventory valued at one of the
costing methods.
Gross Margin = Revenue – Direct Cost of Goods Sold
Other cost of sales includes manufacturing variances, freight and duty, royalty,
warranty and other indirect costs.
Gross Profit = Gross Margin – Other Cost of Goods Sold
20. Reports
Old Program/Report New Program/Report in R12
Assembly Cost Rollup Supply Chain Cost Rollup
Consolidated Bill of Material Supply Chain Consolidated Bill of Material
Indented Bill of Material Supply Chain Consolidated Indented Bill of Material
Inventory Value Report Inventory Value Report – by Subinventory
Inventory Value Report – W.Mgt Inventory Value Report – by Cost Group
All Inventories Value Report All Inventories Value Report – by Subinventory
All Inventories Value Report – Avg All Inventories Value Report – by Cost Group
Elemental Inventory Value Report Elemental Inventory Value Report– by Subinventory
Elemental Inventory Value Report– by Cost Group
Inventory Master Book Report
21. Period End Processing
• In R12, Oracle introduced two changes to help with identifying transactions that would
prevent you from closing the period.
• The first is the ability to drilldown to transactions from the Accounting Periods form.
• The second is a Period Close Pending Transaction report
22. Integration with other Modules
• In R12, there are three new modules that integrate with Cost Management
1. Subledger Accounting,
2. Oracle Process Manufacturing
3. Landed Cost Management.
24. Period Close Process R12- Sequence
1. Order Management / Shipping
2. Cash Management / Treasury
3. Payables
4. Receivables
5. Purchasing
6. Inventory / Costing
7. Projects
8. Assets
9. General Ledger
25. Period Close Process R12- Process
Order Management:
• Complete All Transactions for the Period Being Closed
• Ensure all Interfaces are Completed for the Period (Optional)
• Review Open Orders and Check the Workflow Status
• Review Held Orders
• Review Discounts
• Review Backorders
• Review and Correct Order Exceptions
• Reconcile to Inventory
• Reconcile to Receivables (Optional)
• Run Standard Period End Reports
26. Period Close Process R12- Process
Cash Management:
• Load Bank Statements
• Reconcile Bank Statements
• Create Miscellaneous Transactions
• Review AutoReconciliation Execution Report
• Resolve Exceptions on the AutoReceonciliation Execution Report
• Run Bank Statement Detail Report
• Run Transactions Available for Reconcilaition Report
• Resolve Un-reconciled Statement Lines
• Run the GL Reconciliation Report
• Run the Account Analysis Report for the General Ledger Cash Account
• Review the Account Analysis Report
• Correct any Invalid Entries to the General Ledger Cash Account (Optional)
• Perform the Bank Reconciliation
27. Period Close Process R12- Process
Payables
• Complete All Transactions for the Period Being Closed
• Run the Payables AutoApproval Process for All Invoices / Invoice Batches
• Review & Resolve Amounts to Post to the General Ledger
• Reconcile Payments to Bank Statement Activity for the Period
• Transfer All Approved Invoices Payments, Reconciled Payments to the General Ledger
• Review the Payables to General Ledger Posting Process After Completion
• Submit the Unaccounted Transactions Sweep Program
• Close the Current Oracle Payables Period
• Accrue Uninvoiced Receipts
• Reconcile Oracle Payables Activity for the Period
• Run Mass Additions Transfer to Oracle Assets
• Open the Next Payables Period
• Run Reports for Tax Reporting Purposes (Optional)
• Run the Key Indicators Report (Optional)
• Purge Transactions (Optional)
28. Period Close Process R12- Process
Receivables
• Complete All Transactions for the Period Being Closed
• Reconcile Transaction Activity for the Period
• Reconcile Outstanding Customer Balances
• Review the Unapplied Receipts Register
• Reconcile receipts.
• Reconcile Receipts to Bank Statement Activity for the Period
• Post to the General Ledger
• Reconcile the General Ledger Transfer Process
• Reconcile the Journal Import Process
• Print Invoices
• Print Statements (Optional)
• Print Dunning (Reminder) Letters (Optional)
• Close the Current Oracle Receivables Period
• Reconcile Posted Journal Entries
• Review Unposted Items Report
• Open the Next Oracle Receivables Period
• Run Reports for Tax Reporting Purposes (Optional)
• Run Archive and Purge programs (Optional)
29. Period Close Process R12- Process
Purchasing
• Complete All Transactions for the Period Being Closed
• Review the Current and Future Commitments (Optional)
• Review the Outstanding and Overdue Purchase Orders (Optional)
• Follow up Receipts-Check with Suppliers
• Identify and Review Un-invoiced Receipts (Period End Accruals)
• Follow Up Outstanding Invoices
• Complete the Oracle Payables- Period End Process
• Run Receipt Accruals – Period End Process
• Reconcile Accounts – Perpetual Accruals
• Perform Year End Encumbrance Processing. (Optional)
• Close the Current Purchasing Period.
• Open the Next Purchasing Period.
• Run Standard Period End Reports (Optional)
30. Period Close Process R12- Process
Inventory/WIP
• Complete All Transactions for the Period Being Closed.
• Check Inventory and Work In Process Transaction Interfaces.
• Check Oracle Order Management Transaction Process.
• Review Inventory Transactions.
• Balance the Perpetual Inventory.
• Validate Work In Process Inventory.
• Transfer Summary or Detail Transactions
• Close the Current Oracle Payables and Oracle Purchasing Periods
• Close the Current Inventory Period
• Open the Next Inventory Period
• Run Standard Period End Reports (Optional)
31. Period Close Process R12- Process
Projects
• Change the Current Oracle Projects Period Status from Open to Pending Close
• Open the Next Oracle Projects Period
• Complete All Maintenance Activities
• Run Maintenance Processes
• Complete All Transaction Entry for the Period Being Closed
• Run the Final Cost Distribution Processes
• Interface Transactions to Other Applications (AP, GL, FA)
• Generate Draft Revenue for All Projects
• Generate Invoices
• Run Final Project Costing and Revenue Management Reports
• Transfer Invoices to Oracle Receivables
• Interface Revenue to General ledger (Project Billing Only)
• Run Period Close Exception and Tieback Reports
• Change the Current Period Oracle Projects Status from Pending Close to Closed
• Advance the PA Reporting Period (Optional)
• Update Project Summary Amounts
• Restore Access to User Maintenance Activities
• Permanently Close the Oracle Projects Period (Optional)
• Reconcile Cost Distribution Lines with General Ledger (Optional)
32. Period Close Process R12- Process
Assets
• Complete All Transactions for the Period Being Closed
• Assign All Assets to Distribution Lines
• Run Calculate Gains and Losses (Optional)
• Run Depreciation
• Create Journal Entries
• Rollback Depreciation and/or Rollback Journal Entries (Optional)
• Create Deferred Depreciation Journal Entries (Optional)
• Depreciation Projections(Optional)
• Review and Post Journal Entries
• Reconcile Oracle Assets to Oracle General Ledger Using Reports.
• Run Responsibility Reports (Optional)
• Archive and Purge Transactions (Optional)
33. Period Close Process R12- Process
General Ledger
• Ensure the Next Accounting Period Status is Set to Future Entry
• Complete Oracle Sub-ledger Interfaces to Oracle General Ledger
• Upload Journals from ADI (Applications Desktop Integrator) to Oracle General Ledger
• Complete Non-Oracle Sub-ledger Interfaces to Oracle General Ledger (Optional)
• Generate Reversal Journals (Optional)
• Generate Recurring Journals (Optional)
• Generate Mass Allocation Journals (Optional)
• Review and Verify Journal Details of Unposted Journal Entries
• Post All Journal Batches
• Run General Ledger Trial Balances and Preliminary Financial Statement Generator
Reports (FSGs)
• Revalue Balances (Optional)
• Translate Balances (Optional)
• Consolidate Sets of Books (Optional)
• Review and Correct Balances (Perform Reconciliations)
• Enter Adjustments and / or Accruals and Post
• Perform Final Adjustments
• Close the Current Oracle General Ledger Period
• Open the Next Oracle General Ledger Period
• Run Financial Reports for the Closed Period
• Run Reports for Tax Reporting Purposes (Optional)
• Perform Encumbrance Year End Procedures (Optional)
34. Period Close Process R12- Navigation
Period Navigation
Purchasing : Purchasing Responsibility > Setup > Financials > Accounting > Control
Purchasing Periods
Inventory : Inventory Responsibility > Accounting Close Cycle > Inventory Accounting
Periods
GL: General Ledger Responsibility > Open/Close
AP: Payables Responsibility > Setup > Calendar > Accounting > Accounting Periods
AR: Receivables Responsibility > Control > Accounting > Open/Close Period