Transcript Oracle Costing CustomerAdvisory Board

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, and timing of any
features or functionality described for Oracle’s
products remains at the sole discretion of Oracle.
E-Business Suite R12 Cost Accounting
Integrated with SLA
Diane Streubel – Schreiber Foods Cost Manager
Douglas Volz – OAUG Discrete Cost SIG Sub-Committee
Herve Yu – Oracle Costing Development
Costing Accounting Integrated with SLA
Agenda
• Oracle Process Costing MAC transitioning to SLA
• Oracle Discrete Costing SLA enhancements
• Case example: Discrete Costing-Product Line Accounting
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Schreiber Foods
Diane Streubel
Manager - Cost & System Development
Oracle Process Costing
MAC transitioning
to SLA
Costing Accounting Integrated with SLA
OPM MAC transitioning to SLA
• Converged inventory model
• Inventory Organizations that are Process will use Process
Costing
• Process users are denied access to Discrete Costing forms
• Process Enabled organizations can not setup costs in the Discrete
Costing application
• Sub Ledger Architecture (SLA) replaces MAC
Costing Accounting Integrated with SLA
OPM MAC transitioning to SLA
11i OPM
GMI
Purchasing
(OPM Inventory)
Cost Setup
Calculate Cost
Order
Management
Store Costs
GMD, GME
MAC
Oracle GL
Costing Accounting Integrated with SLA
OPM MAC transitioning to SLA
R12 OPM
Oracle
Inventory
Cost Setup
Purchasing
Calculate Cost
Order
Management
Store Costs
GMD, GME
SLA
Oracle GL
Costing Accounting Integrated with SLA
OPM MAC transitioning to SLA
• Subledger accounting is an intermediate step between subledger
products and the Oracle General Ledger
• Each transaction that requires accounting is represented by a
complete and balanced subledger journal entry, stored in a
common data model.
Costing Accounting Integrated with SLA
OPM MAC transitioning to SLA
11i OPM
Subledger
GL Export
I
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r
f
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General Ledger
Journal Import
Journal Posting
For G/L integration, discrete costing works the same as OPM costing
Costing Accounting Integrated with SLA
OPM MAC transitioning to SLA
R12 OPM
OPM
Payables
Oracle Subledger
Accounting
Oracle General
Ledger
Receivables
Projects
For G/L integration, discrete costing works the same as OPM costing
Costing Accounting Integrated with SLA
OPM MAC transitioning to SLA
OPM MAC
SLA
Completed material
and/or resource
transactions.
Completed material
and/or resource
transactions.
OPM Costing Engine
generates costs.
OPM Costing Engine
generates costs.
Cost Pre-processor
will create
accounting Events
OPM Subledger
process processes
these transactions to
create Journal entries
SLA accounting
program processes
the events to create
the journal entries
Costing Accounting Integrated with SLA
OPM MAC transitioning to SLA – Setup Forms
OPM MAC
SLA
COMMENTS
Fiscal Policy
Retained with few modifications
Event Fiscal Policy
Retained with few modifications
Source
Process Category
Event
Event Entity
Sub-Event
Event Class
Account Titles
Journal Line Types (JLT)
Accounting Template
Application Accounting
Definitions (AAD)
Users can define their own AADs or
modify seeded information
Account Mapping Attributes
(SLA) Sources
SLA sources are used in ADRs
Priorities and Account
Mapping
Account Derivation Rules (ADR)
More flexible. Mapping can be done
at Accounting flexfield level as well
as segment level
Test Mapping
Test Accounting Builder (TAB)
OPM Currency, OPM Ledger,
OPM Exchange Rates
Use GL setups
Costing Accounting Integrated with SLA
OPM MAC transitioning to SLA - Reports
OPM MAC
SLA
Test and Actual Subledger
Accounting
Draft and Final Accounting
Subledger Program
Accounting Pre-Processor
Run Subledger for multiple
valuation/cost methods for a
ledger
Supports multiple valuation methods
In OPM there can only be one
representation at a time. SLA
supports multiple
representations at the same
time
Run Subledger process for a
functional area
Run Pre-Processor by Process
Category
Flexible. User can have any
number of categories.
Assigned to one or more
event classes
Detailed Subledger Report
COMMENTS
Is retained and has been
modified to use SLA repository
Costing Accounting Integrated with SLA
OPM MAC transitioning to SLA
• Most of the steps are automated using migration scripts
• All the Account Definitions would be migrated as ADRs
• Manual Steps to be completed are:
• Assign Account Derivation Rules to Journal Line Definitions
• Validate Application Accounting Definition
• Assign User Subledger Accounting Method to Ledger
Costing Accounting Integrated with SLA
OPM MAC transitioning to SLA - Process
Update the Account Derivation Rule conditions.
Ex: Add Item/Item Class/Organizations
Validate the Application Accounting Definition
Run OPM Accounting Pre-Processor
Run OPM Accounting Pre-Processor
Run Create Accounting in Draft mode
Check Create Accounting report and Journal
Entries report
Run Create Accounting in Final mode to create GL
accounting entries
Costing Accounting Integrated with SLA
OPM MAC transitioning to SLA - Summary
• NO LOSS of functionality by moving to SLA model
• A new sub-menu created under Cost Management for SLA forms.
• Fiscal Policy and Event Fiscal Policy screens retained with minor
modifications. Most of the fields will be read-only.
• OPM Event model mapped to SLA event model.
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OAUG Discrete Cost SIG Sub-Committee
Douglas Volz
Douglas Volz Consulting, Inc.
Oracle Discrete Costing SLA
Enhancements
Costing Accounting Integrated with SLA
Increased Flexibility: Oracle Discrete Costing SLA
Release 11i account recognition “pain points” eliminated by SLA:
• SLA removes limitations for recording COGS and Revenue (still
uses Cost Account Generator/workflow and A/R AutoAccounting)
• Recording inventory and WIP accounts with more flexibility
• Flexible variance account recognition for:
•
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Invoice price variance
Purchase price variance
Average cost adjustment
Standard cost adjustment
Manufacturing variances
Account aliases
Freight charges
And most other inventory, manufacturing and related account entries
Sub Ledger Accounting(SLA)
Key Concepts
• Event Model: definition of the subledger transaction types and
lifecycle
• Entity : Classification of source of transaction
• Event Class: Classifies transaction types for accounting rule
purposes
• Event Type: for each transaction type, defines possible actions with
accounting significance
ENTITY
Material Transaction, Receiving
or WIP or Write Off
EVENT
CLASS
Logical grouping of events which
have similar kind of accounting
EVENT
TYPE
The most granular level of
business event which has
accounting impact
Sub Ledger Accounting(SLA)
Setup and Process
JOURNAL ENTRY SETUPS
Define/copy and modify
journal line types
PROCESS
Enter Transaction(s)
Cost Manager
Define/copy and modify
account derivation rules
Create Accounting*
Define/copy and modify
descriptions
Transfer Journal Entries to GL
*Run ‘Create Accounting – Cost Management’ concurrent request for
accounting all transactions from the Cost Management – SLA
responsibility.
Receiving Accounting can be generated in the Purchasing
responsibilities using the ‘Create Accounting – Receiving’ concurrent
request.
These requests have an option to transfer the entries created to
General Ledger. A separate process is also available.
Sub Ledger Accounting(SLA)
Setup and Process
Accounting
Configurations
Subledger
Journal Entries
Transactions
GL
Journal Entries
and Balances
Accounting
Program
Subledger
Balances
Accounting Events
Journal Entry Setup
Cost Management
SLA
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Oracle Corporation - Discrete Costing
Development
Herve Yu
Senior Principal Engineer
Case Example: Discrete CostingProduct Line Accounting
Costing Accounting Integrated with SLA
Case Example: Purchase Price Variance product Line
Example: Record Purchase Price Variance by Product Line
• We have two brands of cell phones, Samsung and Nokia
• We want to track variances by cell phone brands
• We are going to use 2 different ways to address this same requirement
• Cost/SLA mapping set capability
• Category Accounting – Cost/Global Accounting migrated to SLA in R12.1
• A word for Inventory period close and Cost/SLA upgrade
Cost/SLA mapping set capability
Costing Accounting Integrated with SLA
Cost/SLA mapping set capability:PPV by product Line
• Product Line Setup Steps
Set up your product line using SLA mapping set
1. Enter your SLA account derivation rule for Purchase Price Variance
accounts
2. Associate the new account derivation rule to your Journal Line Type
3. Associate the Application Accounting Definition with Subledger
Accounting Method
Costing Accounting Integrated with SLA
Cost/SLA mapping set capability:PPV by product Line
• Product Line Accounting – Descriptive flexfield
Costing Accounting Integrated with SLA
Cost/SLA mapping set capability:PPV by product Line
• Product Line Accounting – Descriptive flexfield
Costing Accounting Integrated with SLA
Cost/SLA mapping set capability:PPV by product Line
• Mapping set – Account Derivation Rule
Costing Accounting Integrated with SLA
Cost/SLA mapping set capability:PPV by product Line
• Mapping set – Account Derivation Rule
Costing Accounting Integrated with SLA
Cost/SLA mapping set capability:PPV by product Line
• SLA Journal Line / Derivation Rule
Costing Accounting Integrated with SLA
Cost/SLA mapping set capability:PPV by product Line
• Associate Journal Lines Definition to the Event Class
Costing Accounting Integrated with SLA
Cost/SLA mapping set capability:PPV by product Line
• Note the same ADR is usable for Standard Cost Update
Costing Accounting Integrated with SLA
Cost/SLA mapping set capability:PPV by product Line
• Note the same ADR is usable for Standard Cost Update
Costing Accounting Integrated with SLA
Cost/SLA mapping set capability:PPV by product Line
• Associate SLA Definition to the SLA Method/Ledger
Costing Accounting Integrated with SLA
Cost/SLA mapping set capability:PPV by product Line
• Assign product line code to the inventory item
Costing Accounting Integrated with SLA
Cost/SLA mapping set capability:PPV by product Line
• The material subledger from 11i still exists
Inventory
Inventory
Receiving
Matl
Overhead
Absorption
PPV
Costing Accounting Integrated with SLA
Cost/SLA mapping set capability:PPV by product Line
• SLA Entries That Go to Your G/L
Costing Accounting Integrated with SLA
Cost/SLA mapping set capability:PPV by product Line
• For the Standard Cost Update That Go to Your G/L
Category Accounting – Cost/Global
Accounting migrated to SLA in R12.1
Costing Accounting Integrated with SLA
Product Line Category Accounting:Global Accounting
• Create a new structure
under the key flexfield
“Item Category”
Costing Accounting Integrated with SLA
Product Line Category Accounting:Global Accounting
• Create a new structure
under the key flexfield
“Item Category”
• Create category codes
Costing Accounting Integrated with SLA
Product Line Category Accounting:Global Accounting
• Create a new structure
under the key flexfield
“Item Category”
• Create category codes
• Create category set
Costing Accounting Integrated with SLA
Product Line Category Accounting:Global Accounting
• Create a new structure
under the key flexfield
“Item Category”
• Create category codes
• Create category set
• Assign “Product Line
Accounting” functional
area category set
Costing Accounting Integrated with SLA
Product Line Category Accounting:Global Accounting
• Product Line category account
Costing Accounting Integrated with SLA
Product Line Category Accounting:Global Accounting
• Account Derivation Rule would have used a source directly
Costing Accounting Integrated with SLA
Case Example - Conclusion
• Summary Notes
• Product line accounting can be achieved in many ways without using
Costing Hook.
• In R12 SLA is the Oracle R12 accounting platform and Costing supplies
application sources from INV,WIP,RCV… to build the accounting journals.
• One caveat: Pre-Release 12 subledger accounting reports are reading
data from Costing distribution layer (such as the Material Account
Distribution Summary or Detail Reports). Those reports will not show SLA
journals. SLA provides a set of new accounting reports (such as Journal
Entries Report, Accounting Analysis Report…) which can be modified as
desire using BI Publisher.
Costing Accounting Integrated with SLA
Inventory Period Close and Upgrade
• Inventory Period Close Process
• Inventory interim G/L transfer has been replaced by SLA
• The Inventory Accounting Period close works just like it did before,
however, SLA now sends accounting information to the general ledger
• Upgrade Process
• Customers have option of migrating the whole historical data to SLA or
choose which periods data to be migrated.
• Customers get option to either upgrade in downtime when upgrading or
anytime after the upgrade process.
• Default for Cost management is to migrate the present calendar year data
to SLA.
Costing Accounting Integrated with SLA
Additional information are available:
• R12 Oracle Subledger Accounting – Implementation Guide
• R12 Oracle Cost Management – User Guide
• R12 Oracle Process Manufacturing Cost Management - User Guide
THANK YOU