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OAUG Cost Sub-Committee – 1
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Standard Processes
OAUG Cost Sub-Committee – 2
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
What happens when?
Process PO Receipt into Stock
Process PO Receipt/OSP into WIP
Issue materials to a work order
Complete an assembly
Ship to a customer
Average Cost Update
Miscellaneous issues and receipts
Inter-Org transfers
OAUG Cost Sub-Committee – 3
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Process PO Receipt into Stock (Oracle Purchasing)
EnterPO Receipt Transaction
RCV Transactions
Interface
RCV_TRANSACTIONS
RCV_RECEIVING_SUB_LEDGER
RCV_SHIPMENT HEADERS
RCV_SHIPMENT_LINES
GL_INTERFACE
Process PO Receipt into Receiving
Start
Receiving Transaction Processor
Receiving Shipments
Created
Accounting Entries Created
Frequently have stuck transactions for both
PO Receipts and RMAs
All Purchasing transactions go into
here in detail without a GL Group ID
Purchasing creates a receipt and delivery transaction (only the receipt is accounted for) and Inventory creates
the delivery transaction
MTL_SUPPLY
OAUG Cost Sub-Committee – 4
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Process PO Receipt into Stock (Oracle Inventory)
EnterPO Delivery Transaction
RCV Transactions
Interface
RCV_TRANSACTIONS
MTL_MATERIAL_TRANSACTIONS_
TEMP
MTL_MATERIAL_TRANSACTIONS
Process PO Receipt into Stock – Delivery into InventoryStart
Receiving Transaction Processor
Accounting Entries Created
Purchasing creates shadow delivery transaction (only the receipt is accounted for
in Purchasing) and Inventory creates the accounted for delivery transaction
Inventory Transaction Processor
Mat’l Cost Transaction Processor
MTL_TRANSACTION_ACCOUNTS
Here you get stuck uncosted transactions,
mostly Intransit Delivery Transactions
Here you get unprocessed transactions – but they are
considered to be part of your onhand quantities
MTL_ONHAND_QUANTITIES_DETAIL
RCV_SHIPMENT HEADERS
RCV_SHIPMENT_LINES
MTL_SUPPLY
Supply is relieved since the goods as going into stock
OAUG Cost Sub-Committee – 5
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Process PO Receipt/OSP into WIP (same process as before)
EnterPO Receipt Transaction
RCV Transactions
Interface
RCV_TRANSACTIONS
RCV_RECEIVING_SUB_LEDGER
RCV_SHIPMENT HEADERS
RCV_SHIPMENT_LINES
GL_INTERFACE
Process PO Receipt into Stock
Start
Receiving Transaction Processor
Receiving Shipments
Created
Accounting Entries Created
Frequently have stuck transactions for both
PO Receipts and RMAs
All Purchasing transactions go into
here in detail without a GL Group ID
MTL_SUPPLY
OAUG Cost Sub-Committee – 6
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Process OSP PO Receipt into WIP (Oracle WIP)
EnterPO Delivery Transaction
RCV Transactions
Interface
RCV_TRANSACTIONS
WIP_TRANSACTIONS
WIP_TRANSACTION_ACCOUNTS
Process PO OSP Receipt into WIP – Delivery into WIPStart
Receiving Transaction Processor
Accounting Entries Created
Purchasing creates shadow delivery transaction (only the receipt is accounted for
in Purchasing) and WIP creates the accounted for OSP “delivery” transaction
WIP Cost Transaction Processor
The WIP Cost Processor creates the resource/overhead
entries, & the accounting for resources and resource
overheads
WIP_PERIOD_BALANCES
RCV_SHIPMENT HEADERS
RCV_SHIPMENT_LINES
MTL_SUPPLY
Supply is relieved since the goods as going into WIP
OAUG Cost Sub-Committee – 7
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Issue Materials to a Work Order
EnterComponent
Issue Transactions
MTL_MATERIAL_TRANSACTIONS_
TEMP
MTL_MATERIAL_TRANSACTIONS
Issue Materials to a Work Order
Start
Accounting Entries Created
Inventory Transaction Processor
Mat’l Cost Transaction Processor
MTL_TRANSACTION_ACCOUNTS
Here you get unprocessed transactions – but they are
considered to be part of your onhand quantities
These could be manual (push) or automatic (backflush)
WIP_PERIOD_BALANCES
MTL_ONHAND_QUANTITIES_DETAIL
Here you get stuck uncosted transactions
OAUG Cost Sub-Committee – 8
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Complete an Assembly
WIP Completion Transaction
MTL_MATERIAL_TRANSACTIONS_
TEMP
MTL_MATERIAL_TRANSACTIONS
Complete An Assembly From WIP
Start
Accounting Entries Created
Inventory Transaction Processor
Mat’l Cost Transaction Processor
MTL_TRANSACTION_ACCOUNTS
Here you get unprocessed transactions – but they are
considered to be part of your onhand quantities
This transaction could create backflush transactions, depending on your setup
WIP_PERIOD_BALANCES
MTL_ONHAND_QUANTITIES_DETAIL
MTL_SUPPLY
Quantities in stock are increased
Supply from WIP is
decreased
Here you get stuck uncosted transactions,
OAUG Cost Sub-Committee – 9
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Ship to a Customer – Step One – Pick Release
Pick Release & Staging
Material Accounting Entries
Inventory & Cost
Pick ReleaseInventory
Transaction Processor
MTL_MATERIAL_TRANSACTIONS_
TEMP
PICK Transaction
Matl Cost Processor
MTL_MATERIAL_TRANSACTIONS
MTL_TRANSACTIONS_INTERFACE
Accounting Entries
InventoryTransaction Processor
OAUG Cost Sub-Committee – 10
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Ship to a Customer – Step Two – Ship Confirm
Pick Release & Staging
Ship Confirm
OE Interface
Material Accounting Entries
AR Invoice Interface
Auto Invoice
MTL_MATERIAL_TRANSACTIONS
Invoices CreatedCustomerInvoice
Customer ShipmentCOGS
Accounts Receivable
Inventory & Cost
Pick Release
Transactions not OE Interfaced are a major problem – also called “Unprocessed
Shipments”
Inventory Transaction Processor
Matl Cost Processor
MTL_TRANSACTIONS_INTERFACE
Accounting Entries
Accounting Entries
MTL_MATERIAL_TRANSACTIONS_
TEMP
Inventory Transaction Processor
Here you get unprocessed transactions – but they are considered to be part of your
onhand quantities
OAUG Cost Sub-Committee – 11
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Average Cost Update
MTL_MATERIAL_TRANSACTIONS_
TEMP
Material Accounting Entries
MTL_MATERIAL_TRANSACTIONS
Average Cost Update
Submit Average Cost Update
Accounting Entries
Creates Entry to be
Processed by the Inv.
Transaction Processor
MTL_CST_TXN_COST_DETAILS
Item Average Cost History
CST_ITEM_COSTS
CST_ITEM_COST_DETAILS
Material Cost Processor
Inventory Transaction Processor
Updated Item Costs
Submit Onninen Update Avg Costs
MTL_TRANSACTIONS_
INTERFACEThe Onninen Update Average Cost
Program inserts into the Transactions Open Interface –
MTL_TRANSACTIONS_INTERFACE table
OAUG Cost Sub-Committee – 12
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Miscellaneous Issue / Receipt Transactions
EnterMisc.
Transactions
MTL_MATERIAL_TRANSACTIONS_
TEMP
MTL_MATERIAL_TRANSACTIONS
Misc. Issue / Receipt Transaction
Start
Accounting Entries Created
Inventory Transaction Processor
Mat’l Cost Transaction Processor
MTL_TRANSACTION_ACCOUNTS
Here you get unprocessed transactions – but they are
considered to be part of your onhand quantities
These could be Account Alias or Account Issue/Receipt or
Misc. Issue/Receipt
MTL_ONHAND_QUANTITIES_DETAIL
Here you get stuck uncosted transactions
OAUG Cost Sub-Committee – 13
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Inter-Organization Transfers
EnterInter-Org Shipment
Transaction
MTL_MATERIAL_TRANSACTIONS_
TEMP
MTL_MATERIAL_TRANSACTIONS
Inter-Organization Shipment Transaction
Start
Accounting Entries Created
Inventory Transaction Processor
Mat’l Cost Transaction Processor
MTL_TRANSACTION_ACCOUNTS
Here you get unprocessed transactions – but they are
considered to be part of your onhand quantities
This example assumes use of intransit inventory
MTL_ONHAND_QUANTITIES_DETAIL
MTL_SUPPLY
Intransit Inventory is kept in MTL_SUPPLY, not in
MTL_ONHAND_OUANTITIES_DETAIL table
Uncosted transactions are in this table
OAUG Cost Sub-Committee – 14
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Inter-Organization Transfers
EnterInter-Org Receipt
Transaction
MTL_MATERIAL_TRANSACTIONS_
TEMP
MTL_MATERIAL_TRANSACTIONS
Inter-Organization Receipt TransactionStart
Accounting Entries Created
Inventory Transaction Processor
Mat’l Cost Transaction Processor
MTL_TRANSACTION_ACCOUNTS
Here you get unprocessed transactions – but they are considered to be part of
your onhand quantities
This example assumes use of internal requisitions and
intransit inventory
MTL_ONHAND_QUANTITIES_DETAIL
Uncosted transactions are in this table
MTL_SUPPLY
Intransit Inventory is kept in MTL_SUPPLY, not in MTL_ONHAND_OUANTITIES_DETAIL table
If you use internal requisitions, the Inter-Org Receipt transaction will also create
entries into RCV_SHIPMENT_HEADERS, RCV_SHIPMENT_LINES and
RCV_TRANSACTIONS
RCV_SHIPMENT HEADERS
RCV_SHIPMENT_LINES
Receiving Shipments
CreatedMTL_SUPPLY
RCV Transactions
Interface
RCV_TRANSACTIONS
Receiving Transaction Processor
OAUG Cost Sub-Committee – 15
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Pending and Uncosted Transactions
OAUG Cost Sub-Committee – 16
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Pending and Uncosted Transactions
Every inventory organization needs to close its accounting period
You can set up an organization hierarchy to centralize the “key entry” part of closing the inventory organization
But every inventory organization has its own item costs
All inventory accounting entries are written in batch
You cannot close the Inventory Accounting Period if there are pending (incomplete) material movement transactions
You cannot close the Inventory Accounting Period if there is material movement that is not costed (accounting entries have not been written)
Pending and uncosted transactions usually reflect the time delay in running the Inventory Processor (for the quantity movement) and the Material Cost Processor (for the accounting entries)
OAUG Cost Sub-Committee – 17
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Month End Close
Dis
trib
utio
n C
en
tre
Acco
un
tin
g
7.0 ReconcileInv entory
Balances toSubledgers & G/L
5.0 Close Periodf or Inv entory and
WIP
6.0 Run Reports& Snapshot
reportinginf ormation
3.0 CompleteTransactionsand/or Clear
Errors
Pending?
Mat'l/WIP/POTransaction Detail
Reports
8.0 Book & rev iewaccruals, prepaids,corporate transf ers
in the GL
1.0 Book all miscinv entory / WIP
transactions
Yes
No
Prior to first workday First workday
A/P Closeby COB
workday -1
DC Closecomplete
9.0 Perf orm Massallocations: cost
pool cost centresto f inal cost
centres
Trial BalanceReport
Month End
ClosePurchasing
G/L ImportProcess
CloseProjects
Rev iewPending &uncosted
TransactionInterf aces
4.0 Check f ortransactions with
zero unit costs
2.0 Open nextInv entory period
workday -1
10.0 Notif yCorporate is
closed
ApplicableDiscrete Jobs
Close byworkday -1
OAUG Cost Sub-Committee – 18
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Review Pending and Uncosted TransactionsIT
Dis
trib
utio
n A
cco
un
ting
Need toreview forpending oruncostedtransactions
Transactionreview
complete
Are cost/transactionmanagersrunning?
Start Cost/InterfaceManagerprocess
1.0 View AllPending/Uncosted
Transactions
Pendingtransactions
remain?
Yes
Step 5.0 ResubmitPending
Transactions
Pending orUncosted?
Step 2.0 ResubmitUncosted
transactions
Step 3.0 FindPending
Transactions
Step 4.0 Analyzeerror message and
correct pendingtransactions
Pending
Uncosted
Step 6.0 ContactIT
IT PendingTransaction
process
Able tocorrect?
No
Yes
Uncostedtransactions
remain?
Yes
Yes
No
No
IT UncostedTransaction
Process
Pending oruncosted trans.
exist?
Yes
A
A
No
Step 1.1 ViewTransaction
Manager Status
No
Step 1.2 ContactIT
Step 2.1 ContactIT
StartTransactionMonitoringProcess
Step 7.0 InformDistribution Center
Run InterfaceErrors Report
OAUG Cost Sub-Committee – 19
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Pending Oracle Transactions
Pending Oracle Transactions
Resolution Required Transactions
Pending Transactions Name
Description Interface Table Name Navigation for Cost Manager
Unprocessed Material
Material transactions “halfway” processed and stuck in the material temporary table. Usually shipment/RMA transactions. This is an internal Oracle table.
MTL_MATERIAL_TRANSACTIONS_TEMP
View Transactions> Pending Transactions
Uncosted Material Material transactions where the quantity movement has been completed, but the accounting entries have not been recorded. The Cost Manager creates the accounting entries for the material transactions. This table is the resting place of all inventory related transactions.
MTL_MATERIAL_TRANSACTIONS where the costed_flag = ‘N’ or ‘E’
View Transactions> Material Transactions, query up all entries where the “Costed” field displays “No” or “Error”
OAUG Cost Sub-Committee – 20
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Pending Oracle Transactions
Pending Oracle Transactions
Resolution Required Transactions
Pending Transactions Name
Description Interface Table Name Navigation for Cost Manager
Pending WIP Costing WIP resource, OSP resource, and job close transactions that are pending or erred. The Cost Manager creates the accounting entries for the resource, overhead, OSP and job close transactions. This table may be used to populate external resource costs into the Oracle Applications.
WIP_COST_TXN_INTERFACE
View Transactions> Pending Resource Transactions
Unprocessed Shipping Transactions
Pending shipments not yet processed. To clear these, assuming no underlying data issues, you need to go to the Order Management module > Shipping > Trip Stop SRS selection and run the trip stop interface. If this does not work, there may be underlying data issues with the delivery or trip stop.
WSH_DELIVERY_DETAILS
There is no Cost Management Navigation. Go to Order Management > Shipping > Trip Stop SRS to run the Trip Stop interface
OAUG Cost Sub-Committee – 21
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Pending Oracle Transactions
Pending Oracle Transactions
Resolution Recommended Transactions
Pending Transactions Name
Description Interface Table Name Navigation for Cost Manager
Pending Receiving PO Receipt Transactions that have erred out. The receiving transactions always use this interface table, sometimes, for unexplained reasons, a stray transaction will error out. This table may be used to populate external receiving transactions.
RCV_TRANSACTIONS_INTERFACE There is a Receiving Interface Errors Report using the Purchasing Responsibility.
Pending Material Pending material transactions from an external system, such as EDI or bar-coding. Note that the shipment transactions initially load this table, then clear it, and load the pending material transactions interface, MTL_MATERIAL_TRANSACTIONS_TEMP.
MTL_TRANSACTIONS_INTERFACE View Transactions>
TransactionOpenInterface
Pending Shop Floor Move
Pending WIP shop floor move transactions, internal or external to Oracle.
WIP_MOVE_TXN_INTERFACE View Transactions> Pending Move Transactions
OAUG Cost Sub-Committee – 23
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
GL Integration with Inventory and Work In Process
Inventory Period Calendars vs. GL Period Calendars
Concept of shared chart of accounts and set of books
Interim GL transfers and transfer options (summary vs. detail)
GL to Inventory drill-down capabilities, online and via reports
Period close processing in Oracle Inventory, and Journal Import in Oracle General Ledger
OAUG Cost Sub-Committee – 24
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Inventory Periods Vs. General Ledger Periods
Every GL Set of Books has its own Financial Calendar
Purchasing, Payables, Receivables have their own calendar by Operating Unit
Inventory and WIP share the same financial calendar but have one for each Inventory Organization
This means that you have to open and close each inventory period in each inventory organization, separately from the GL, Purchasing, Payables and Receivables
→Note: if you close Inventory, or Purchasing or General Ledger, you cannot do a PO Receipt or Return or OSP Receipt or Return
OAUG Cost Sub-Committee – 25
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Interim GL transfers and transfer options (summary vs. detail)
You can transfer when you want to within the accounting period
You can transfer to the General Ledger in detail or in summary
OAUG Cost Sub-Committee – 26
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
GL to Inventory drill-down capabilities, online and via reports
Since Release 10 there has been reporting drill down capability
The GL Journal Header stores the inventory org code in the Journal Batch Name, and the Inventory GL Batch ID
Run the Material Account Distribution, WIP Account Distribution Reports by GL Batch ID, to get the appropriate entries you find in the General Ledger.
In Release 11.5.9 + patches and 11.5.10 you can transfer to GL in detail, summarize when you run journal import, AND have drill-down capability from Oracle General Ledger.
→ Note: Due to the transaction volumes, it is not useful to drill-down for large accounts, from the G/L back into the material accounting or wip accounting details. So if you do use the online drill-down capabilities, please be careful or you will “hang” your session.
OAUG Cost Sub-Committee – 27
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Period close processing in Oracle Inventory
What Happens?
Transfers entries in summary or detail to the GL Interface table
Marks the entries in the Inventory and WIP subledger as been transferred (cannot do it twice!)
Creates a GL Batch Id for the respective entries, and for the GL Journal Batch Header
Prior to Release 11.5.10, stores summary values by inventory organization by subinventory (blank subinventories are for intransit)
In Release 11.5.10, stores period-end inventory values and costs by inventory organization by subinventory by each individual item
Release 11.5.10 also creates a detailed reconciliation report that compares the cumulative onhand values against the cumulative accounting values
OAUG Cost Sub-Committee – 28
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Inventory & WIP Reconciliation
OAUG Cost Sub-Committee – 29
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Reconciling Inventory & WIP to General Ledger
Basic reports to use, when to run, timing considerations
Sample spreadsheet
What to do when you can’t reconcile
OAUG Cost Sub-Committee – 30
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
How to Balance the Receiving Valuation Accounts
Use the Receiving Valuation Reports to get the month-end balances
Use the Receiving Account Distribution Report for monthly increases to the Receiving Valuation Account
Use the Material Distribution Summary Report for monthly decreases to the Receiving Valuation Account
→ Note: the quantities and values for the Receiving Valuation Reports are “on demand” – they must be run at the correct time, after the period is closed and before the new accounting period has transactions.
OAUG Cost Sub-Committee – 31
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
How to Balance the Inventory (Stores) Valuation Accounts
Use the Inventory Valuation Reports to get the month-end balances
Use the Transaction Historical Summary Report – also called the “Rollback Report” to get a prior balance for subinventories (only)
Use the Period Close Value Summary Report, for a double check
Use the Material Distribution Summary Report for monthly totals
→ Note: the quantities and values for the Inventory Valuation Reports are “on demand” – they must be run at the correct time, after the period is closed and before the new accounting period has transactions.
OAUG Cost Sub-Committee – 32
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
How to Balance the Intransit Valuation Accounts
Use the Intransit Valuation Reports to get the month-end balances
Choose Yes for the option “Only Display Inventory You Own”
Use the Material Distribution Summary Report for monthly totals
→ Note: the quantities and values for the Intransit Valuation Reports are “on demand” – they must be run at the correct time, after the period is closed and before the new accounting period has transactions.
OAUG Cost Sub-Committee – 33
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
How to Balance the WIP Valuation Accounts
Use the WIP Valuation Report to get the month-end balances (No cut-off issues!!)
Choose the option to include closed jobs
Use the WIP Account Summary and Material Distribution Summary Reports for monthly totals
→ Note: the quantities and values for the WIP Valuation Reports are stored by accounting period, you may run these any time after period close as needed.
OAUG Cost Sub-Committee – 34
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Sample Reconciliation Spreadsheet and Example
OAUG Cost Sub-Committee – 35
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
What do you do when you can’t Reconcile?
Reasons
Report cut-off issues
Incorrect misc. inventory transactions
Disabling a code combination during the month
Subledger miscodings
Manual GL journal entries
Back-dated transactions from external system feeds
Miscoded purchase orders
Delivering goods to a closed work order
OAUG Cost Sub-Committee – 36
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Report Cut-Off Issues
The following reports need to be run at the correct time (before new transactions occur in the following accounting period):
Inventory Value Report
All Inventories Value Report
Receiving Value Report
Intransit Value Report
Corrective action:
Run the reports at midnight on the last day of the month. Also run the Material and Receiving Account Distribution reports to capture daily transactions that need to be subtracted away.
OAUG Cost Sub-Committee – 37
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Incorrect Misc. Inventory Transactions
Check for miscellaneous inventory transactions, where the offset account is the same as the subinventory valuation account
When this happens, debits = credits, the accounting effect is zero, but the onhand quantities have changed. Your cumulative accounting is out of balance with your onhand value reports
Use the Transaction Distribution Inquiry to find these transactions. Query for entries that hit your subinventory valuation accounts, but the Accounting Line Type is “Account”
Corrective action:
Reverse the miscellaneous transaction (assuming the standard costs have not changed) and replay the transaction with a correct offset account.
OAUG Cost Sub-Committee – 38
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Disabling a code combination during the month
If you disable a code combination during the month, AND it has been used in Inventory or WIP subledger, it will not come over to the GL Interface. For other subledgers it will fail in journal Import (Payables, others)
You can find this by comparing the summary material distribution reports to your GL entries (if able to run journal import and post to GL)
Corrective action:
For Inventory or WIP, manual journal entry to book the difference (or SQL to reset the transaction and run the Interim Inventory Transfer to G/L)
For other subledgers, fix in the GL interface (it will be an unbalanced entry).
OAUG Cost Sub-Committee – 39
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Sub ledger Miscoding
Miscoded Purchase Orders cause permanent differences once the corresponding line item is received
Departments such as Accounts Payable and Accounts Receivable intermittently reference inventory accounts during coding, causing permanent differences
You must not code any Receivable or Payable entries to a system account
System accounts include your Inventory Accounts, AP Accrual Accounts (Inventory and Expense), Intransit, Inter-org Clearing Accounts or Receiving Inventory Account
Corrective actions:
Reverse subledger entry if possible, or correct via manual GL entry.
OAUG Cost Sub-Committee – 40
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Manual GL journal entries
Manual General Ledger journal entries become an automatic reconciliation item
Typically you only write reversing entries to correct the balances at month-end, but in the new month you should perform the transaction in the respective subledger
OAUG Cost Sub-Committee – 41
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Back-dated transactions from external system feeds
Backdated transactions which occur in the following month affect the GL but are not reflected within the perpetual records. This in-turn causes temporary accounting differences from month to month precluding our ability to benchmark perpetual activity
Sources of backdated transactions include:
Late inventory period closes
External system feeds
Corrective actions:
Enter a manual reversing journal entry
OAUG Cost Sub-Committee – 42
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Delivering goods to a closed work order
Oracle provides us with the ability to deliver Outside Processing (OSP) vendor receipts to closed work orders
This causes a permanent difference as the corresponding work order is not charged and the costs are not reflected within the perpetual records (WIP balances) accordingly
Corrective actions:
Reopen the work order and make corrections
OAUG Cost Sub-Committee – 43
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Release 12 Enhancements
OAUG Cost Sub-Committee – 44
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Inventory Value Reports Enhancements
The following reports can now be run with an As-of Date:
Inventory Value Report – By Subinventory
Inventory Value Report – By Cost Group
Elemental Inventory Value Report – By Subinventory
Elemental Inventory Value Report – By Cost Group
All Inventories Value Report
All Inventories Value Report – By Cost Group
Intransit Value Report
Receiving Value Report
OAUG Cost Sub-Committee – 45
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Period Close Diagnostics
Drilldown from Pending Transactions form to transaction details forms, that allows users to more quickly view the details of the transactions that are preventing period close
Diagnostic report (in XML Publisher) showing all transactions holding up period close
System Alert messages and e-mail notifications to users in case of costing errors to ensure timely resolution of erred transactions and prevent panic at period end
OAUG Cost Sub-Committee – 47
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Topics for the remainder of 2007
November – Period Close Interfaces, November 27th
December – No meeting, next meeting in January 2008
OAUG Cost Sub-Committee – 48
Discrete MFG SIG – Cost Sub-CommitteeOctober 24, 2007
Other Issues/Concerns
Start enhancement list for discussion in 2008