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Oracle Cost Management
Manufacturing Functional Foundation
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Objectives
After completing this lesson, you should be able to dothe following:
Understand the costing methods supported in
Cost Management Identify the major tables used in Cost Management
Discuss the open interfaces and applicationprogram interfaces for Cost Management
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Agenda
Cost Management Overview
Cost Management Transactions and EntityRelationship Diagrams
Cost Management Open Interfaces andApplication Program Interfaces
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Oracle Cost Management Overview
Production ProfitabilityInventory
Analysis Audit trailItem costs
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Cost Structure
A cost structure is the collection of definitions andmethods used to cost inventory, bills of material, andwork in process. The cost structure is composed of:
Organizations Cost organizations and shared costs
Cost elements
Subelements
Activities Basis types
General ledger accounts
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Cost Rollup and Updates
Cost Rollup
Cost Update
EngineeringInformation
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Standard Cost Actual Cost Variance
Standard Costing
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Average Costing
Average Unit Cost for XYZ on February 28, 2005 = $2.40
January 13, 2005
February 02, 2005
February 27, 2005
March 16, 2005
Receipt Date Amount
$10.00
$14.00
$12.00
$11.00
April 08, 2005 $14.00
Quantity
4
6
5
5
6
Receipts for Item XYZ
Average Unit Cost for XYZ on April 09, 2005 = $2.35
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FIFO/LIFO Costing
FIFO (First In/First Out)
LIFO (Last in/First Out)
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Periodic Costing
Periodic Costing is an option that enables you to valueinventory on a periodic basis. There are three principalobjectives of periodic costing:
To capture actual acquisition costs based onsupplier invoiced amounts plus other directprocurement charges required by nationallegislation or company policy
To capture actual transaction costs using fully
absorbed resource and overhead rates To average inventory costs over a prescribed
period, rather than on a transactional basis
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Agenda
Cost Management Overview
Cost Management Transactions and EntityRelationship Diagrams
Cost Management Open Interfaces andApplication Program Interfaces
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Standard Cost Type
CST_ACTIVITIESBOM_
RESOURCES
CST_COST_ELEMENTS
CST_ITEM_COST_DETAILS
CST_ITEM_COSTS
MTL_SYSTEM_ITEMS_B
CST_COST_TYPES
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Average, FIFO, LIFO Cost Types
CST_LAYER_COST_DETAILS
CST_ACTIVITIESBOM_
RESOURCES
CST_COST_ELEMENTS
CST_QUANTITY_LAYERS
CST_ITEM_COSTS
MTL_SYSTEM_ITEMS_B
CST_COST_TYPES
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Resource and Overhead Costs
BOM_RESOURCES
MATERIAL OVERHEAD
MATERIALOVERHEAD
RESOURCE/OUTSIDE
PROCESSING
CST_RESOURCE_OVERHEADS
CST_DEPARTMENT_OVERHEADS
BOM_DEPARTMENTS
CST_COST_TYPES
CST_RESOURCE_
COSTS
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Agenda
Cost Management Overview
Cost Management Transactions and EntityRelationship Diagrams
Cost Management Open Interfaces andApplication Program Interfaces
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Cost Management Open Interfaces andApplication Program Interfaces
Periodic Cost Open Interface
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Summary
In this lesson, you should have learned how to:
Describe the costing methods supported in CostManagement
Identify the major tables used in Cost Management Discuss the open interfaces and application
program interfaces for Cost Management
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