GE Hungary Zrt.

Energy Division
EBS Release 11.5.10.2 version

Overview
Cost Management
new functions and integration

Katalin Krausz
Oracle Hungary
01. April 2008

Copyright © Oracle Corporation, 2004. All rights reserved.

 Goals and Objectives

 Overview EBS release 11i10 new Supply Chain

modules/product
 Overview GE Oracle Work in Process module
integration
 Overview new GE Work in Process new functions of
Oracle Apps 11.5.10.2 version
 Interview with Cost Management Superuser for
next training preparation

Copyright © Oracle Corporation, 2004. All rights reserved.

Oracle Applications development history
 Release 1 – Oct 1987
 No Release 2
 Release 3 – Nov 1988
 Release 4 – Jan 1989
 Release 5 – May 1989
 Release 6 – Oct 1989
 Release 7 – March 1990
 Release 8 – Nov 1990
 Release 9 – June 1992
 Release 10 Character (10C) – 1995
 Release 10 Smart Client (10SC) – 1996
 Release 10.7 (Character and Smart Client) – Feb 1997
 Release 10.7 Network Computing Architecture (10.7NCA) – Jan
1998
 Release 11 – Apr 1998
 Release 11i – May 2000
 Release 12 – Apr 2007

Copyright © Oracle Corporation, 2004. All rights reserved.

 Overview EBS release 11i10 new Supply
Chain modules/product
Procurement
• Sourcing Manufacturing
• Procurement Contracts • Mfg Scheduling
• Discrete Manufacturing
• iProcurement
• Flow / Lean Mfg
• Services Procurement
• Process Manufacturing
• Purchasing
• Project Manufacturing
• Supplier Collaboration • Shop Floor Mgmt
• Oracle Supplier Network • Mfg Intelligence
• Payables
• Purchasing Intelligence
Logistics
Order Management • Inventory Management
• Order Management • Mobile SC Apps
• Configurator • Warehouse Mgmt
• Advanced Pricing • Transportation Planning
• Release Management • Transportation Exec
• Receivables • Sensor Based Services
• Order Intelligence
New in 11i.10 • Fulfillment Intelligence

Copyright © Oracle Corporation, 2004. All rights reserved.

 Overview EBS release 11i10 new Supply
Chain modules/product
Product Development Service
• Adv Product Catalog • iSupport
• UCCnet Trading Connector • TeleService
• CAD Sharing & Viewing • Field Service
• Collaboration Suite • Mobile Field Service
• Product Intelligence • Advanced Scheduler
• Spares Management
SC Planning • Depot Repair
• Collaborative Planning • Service Contracts
• Demand Planning • Interaction Center
• Advanced SC Planning
• Constraint Optimization Service Intelligence
• Inventory Optimization • Enterprise Asset Mgmt
• Global Order Promising • Self-Service Work Reqs
• Exception Management • Property Manager
• Planning Intelligence New in 11i.10 • Maintenance Intelligence

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 Overview Oracle EBS modules integration
Order
A/R
Management
Cost Management

Inventory

General
BOM/ ASCP Ledger
Formulas
WIP

Purchasing A/P

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Overview Oracle Cost Management Integration
with BOM (1)
BOM Cost
Management
A Issue
Material
B C
item,
BOM
resource
overhead
Costing costs
by cost type
Op Op Op Op
10 20 30 40

Routing

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Overview Oracle Cost Management Integration
with BOM (2)
Pending cost rollup Pending cost rollup
Cost type: Frozen Cost type: Pending
A A
B C BOM
B C

Routing
Op Op Op Op Op Op
Op Op
10 20 30 40 20 30
10 40

Frozen cost: 25.00 Frozen cost: 15.00

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Overview Oracle Cost Management Integration
with BOM (3)

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Overview Oracle Cost Management Integration
with Inventory and WIP

Transactions

Oracle
Transaction valuation
Inventory

Oracle Cost
Management
Transactions

Oracle WIP

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Overview Oracle Cost Management Integration
with Inventory and WIP and PO
Inventory Work in Process Purchase
Order
Issue OSP PO
Material requisition

Raw Material
Inventory Supplier
Complete OSP PO
Assemblies receipt

Finished Jobs and Finished

Goods Schedules Goods
Subinventory Subinventory

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Overview Oracle Cost Management Integration
with General Ledger

Oracle Cost Management uses the chart of accounts defined

in Oracle General Ledger.
If you do not use Oracle General Ledger, you define your
chart of accounts in Oracle Inventory or in Oracle Cost
Management.

Transaction valuation

Chart of accounts

Oracle Oracle Cost

General Ledger Management

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Overview Oracle WIP transaction valuation
WIP costing
Absorption accounts

Resource charges Overhead charges

WIP valuation accounts

Material
Standard discrete job Job
transactions
Inventory Nonstandard asset job
close WIP
elemental variance
accounts Nonstandard expense job accounts

Repetitive schedule
Cost update
transaction Assembly scrap transaction
Standard cost adjustment accounts Scrap account

Assembly completion transactions

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Overview Oracle WIP transactions (1)

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Overview Oracle WIP transaction (2)

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Overview Oracle WIP transaction (3)

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Overview Oracle WIP transaction valuation

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 Cost Management
ORACLE 11.5.10.2 new functions
 Supply Chain Cost Rollups
 Support for Enhance Intercompany (See in the Inventory)
 Support for Global Procurement in a Shared Services Environment
(See Purchasing in the Procurement Family)
 Support for Retroactive Price Changes (See Purchasing in the
Procurement Family)
 Increased Flexibility for Charges to Maintenance Work Orders - (See
Enterprise Asset Maintenance)
 Support for Direct Labor Purchase Order for Maintenance Work Orders
(See Enterprise Asset Maintenance)
 Support for Linking of Maintenance Work Orders (See Enterprise Asset
Maintenance)

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 Cost Management
Supply Chain Cost Rollup (1)
 The Supply Chain Cost Rollup enables you to roll up costs across
multiple organizations, with a mixture of costing methods and
currencies, connected to sourcing rules.
 The Supply Chain Cost Rolllup program uses sourcing rules.
 Set the profile option, CST:Cost Rollup – Wait for Table Lock, to lock
Cost Management tables for the rollup. If set to Yes, the program will
continually attempt to lock the tables.
 To submit a Supply Chain Cost Rollup Request. Optionally select a
value in the Assignment Set field.Once you have defined your sourcing
rules and bills of distribution, you assign them to particular items
and/or organizations. These groupings are called assignment sets. This
is where sourcing strategies are defined for a particular supply chain
network.
 Prerequsition: Sourcing rule decision and setup by inventory
organization.
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 Cost Management
Supply Chain Cost Rollup (2)
Costing process without Supply Chain Cost Rollups

1. Creation new Items (produced, purchased)

2. BOM, Routings
3. Set up Cost Elements, Sub-Elements at the Costing Inventory
4. Cost rollup at the Costing Inventory
5. Copy costs to all orgs (pending)
6. Cost Update (all orgs)

Costing process with Supply Chain Cost Rollups

1. Creation new Items (produced, purchased)

2. BOM, Routings
3. Set up Cost Elements, Sub-Elements at the Costing Inventory
4. Supply Chain Cost Rollup (pending)
5. Cost Update (all orgs)

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 Cost Management
Supply Chain Cost Rollups (2)

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 Cost Management
Support for Enhance Intercompany

 In this release, Oracle Inventory has introduced Enhance

Intercompany transactions to support Drop Shipment
across Sets of Books, Shared Procurement Services, and
Ownership Transfer during sales order shipments across
operating units. Oracle Cost Management costs and
performs the accounting for both the physical and financial
flows See Enhanced Intercompany in the Inventory RCD for
more information on this project and its significance to
global corporations. Caret

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 Cost Management
Support for Global Procurement in a Shared Services
Environment

 Cost Management supports Global Procurement in a

Shared Services Environment (See Purchasing in the
Procurement Family).

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 Cost Management
Support for Retroactive Price Changes

 Cost Management supports Retroactive Price Changes

(See Purchasing in the Procurement Family). Retroactive
Price Changes automatically create adjustments to
Accounts Payable Accruals and Encumbrance Reversal for
the effected receipts.
 The Retroactive Price Variance account holds the
difference between the original price and the revised price.

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 Cost Management
Increased Flexibility for Charges to Maintenance Work Orders

 You can choose whether or not to charge items from

expense subinventories to maintenance work orders based
on your business practices. If you choose to charge these
items, Cost Management will credit the subinventory's
expense account. You can use both methods for different
classes of maintenance work orders. (See Enterprise Asset
Maintenance -- Issue/Return of Rebuildable Items.

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 Cost Management
Increased Flexibility for Charges to Maintenance Work Orders

 Cost Management supports the direct shop floor delivery of

labor charges and equipment charges. You can include
labor and equipment charges on a purchase order for
maintenance work orders. Cost Management includes these
charges on the estimate for the work order, and charges
the work order upon delivery of these services. You can
view these charges by work order or by maintained asset.
(See Enterprise Asset Maintenance -- Direct Purchases
Charged to Appropriate Cost Categories.)

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 Cost Management
Support for Linking of Maintenance Work Orders

 Using Parent and Child Work Order Relationships, you can

view Work Order Cost by Parent-Child Work Order
Hierarchy. (See Enterprise Asset Maintenance - Work
Order Linking -- Work Order Costing.)

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 KÉRDÉSEK
VÁLASZOK

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