Defining Resource Cost in Oracle Process Manufacturing (OPM)
To
reflect the cost of the resource incurred during production in the
product cost, set up routings and define the amount or number of
resources used.
Outside
production, set up overheads to reflect the amount of resources other
than the production or ingredients used in the product; you can then
include overhead costs in the cost of producing the product. In either
case, first we must define nominal usage cost associated with the
resource.
To know about defining Overheads, click the following link
Pre-requisites:
Resources
To know about how to define a resource, click the following link
Navigation: OPM Financials > Resource costs
Enter the code of the Organization for which this resource cost is effective.
Note: If
Organization is not entered then the resource cost will be considered
for all the organizations that fall under the displayed Legal entity.
Enter the Resource for which we are defining the cost.
Enter the Cost Calendar & Period for which this resource cost will be applicable.
Component class displays the component class associated with the resource & Base Currency displays the legal entity’s base currency.
Cost Details
Enter for which Cost Type this resource cost is defined.
Enter a Nominal Cost for the resource for using it for one unit of measure. For example,
if you are defining the resource cost for a mixing machine, and its
usage is measured in hours, then enter the cost of using the mixing
machine for one hour.
Enter the unit of measure in which usage of this resource is measured in UOM.
By default the system will display the unit of measure initially
defined for this resource. We can edit the value within the same unit of
measure class.
Note: Status field is not applicable
Defining Fixed Overheads in Oracle Process Manufacturing (OPM)
An overhead is a cost associated with a resource other than the resource usage assigned in the routing.
Assume
you need a laborer to clean MIXER after each use. To account for the
cost of cleanup, instead of adding another component cost to each item
that uses MIXER, you can assign an overhead to the items being produced
by that laborer on MIXER. The overhead assignment would be the time it
takes the laborer to clean MIXER multiplied by the cost per hour for the
laborer.
Navigation:
OPM Financials > Fixed Overheads
To define Fixed Overheads:
Enter the Item code to which this overhead is going to assigned.
Enter a valid Calendar, Period code & Cost type.
Base Currency code field will display the base currency of the legal entity.
Overhead Details:
Enter the Resource code and Component Class code.
To know how to create a Resource click the following link http://dj-oracleapps.blogspot.in/2014/02/creating-resources-in-oracle-process.html
To know how to create a Resource click the following link http://dj-oracleapps.blogspot.in/2014/02/creating-resources-in-oracle-process.html
Enter the Analysis code under which this overhead should appear in cost detail.
Enter the Qty of resource used in the production of this item in Resource Count. Ex: If it takes one worker to cleanup Mixer after each use, then enter 1. This number is multiplied by the Resource Usage to calculate the total resource usage.
Enter the amount of the resource used for this overhead in Resource Usage. Ex: If it takes 10 minutes for a worker to cleanup Mixer after each use, then enter 0.10
Enter the unit of measure in which the resource is yielded in Resource UOM.
Enter the amount of the item yielded in this production process during the entered .10 hours of resource usage in Item Quantity.
Enter the unit of measure in which this overhead is measured in Overhead UOM field.
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How to open new period in OPM Cost Calendar?
Navigation: OPM Financials > Setup > Cost Calendars
Query the calendar which you use
In the new line enter the Period code, Description & End Date of the period & click ‘Assignments’.
Click on the cost type you are using and click ‘Period Status’ tab.
By default the status of the new period will be ‘Never Opened’.
Click the ‘lov’ and change the status to “Open”.
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Subledger Accounting Balances Update
In this post we will see what Subledger accounting balances update concurrent is & what it does?
The
Subledger Accounting Balances Update is a standalone concurrent program
which calculates the control balances and analytical balances
(supporting reference balances) for any newly accounted transactions.
Normally,
Create Accounting and online accounting will automatically call the
Subledger Accounting Balances Update program to calculate the
control/analytical balances. However, there have been situations where
multiple online accounting programs are called simultaneously, and if
all of them have accounts which belong to either control accounts or
analytical accounts then only one of the simultaneous online accounting
programs will be successful in updating the balances.
To
ensure that balances are up to date, it is recommended that you
manually run the Subledger Accounting Balances Update program for the
ledger at least once before you run the Third Party Balances report or
before viewing Supporting Reference Balances. This is to ensure that all
balances are updated completely.
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OPM Cost Allocation Process
In this post we will see what exactly OPM Cost Allocation Process concurrent does and how to run it.
OPM
Cost Allocation process concurrent takes care of spreading the costs
down to the products as defined in Allocation definitions form.
Parameters:
Legal Entity – Enter your LE
Cost Calendar – Enter the name of your calendar
Period – Enter the period for which the cost has to be allocated.
Cost Type – Enter the costing method which you use.
Fiscal year – Fiscal year
Period – This refers to GL Period
Allocation From - Enter the from allocation code
Allocation To - Enter the to allocation code
Refresh Interface – Yes / No
In the new form enter your Ledger Name and click go.
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Setting up default value of Create Accounting mode as “Draft” (Process Manufacturing Financial)
Navigation:
OPM
Financial Responsibility – Setup – Subledger Accounting setups –
Accounting Methods Builder – Methods and definitions – Subledger
Accounting methods.
Query on user defined Subledger accounting method
Keep the cursor on application “Process Manufacturing Financials” & Click “Accounting Setups”.
In the new form enter your Ledger Name and click go.
Click “Update Accounting options” against your Ledger.
Click on “Update” button against “Subledger accounting options” Setup step
In the list of options click “Update Accounting options” against “Process Manufacturing Financials” Application
In the “Accounting Progam Mode” select “Draft”. Click on Apply button.
Thanks for the tutotiral. Very well explained! Congratulations.
ReplyDeleteI have a question at the point: "Defining Fixed Overheads in Oracle Process Manufacturing (OPM)"
When we define a fixed overhead for an item, in cost transactions is this item overhead added only once? Or is it based on ops? Following your example of 1 employee to clean the mixer:
1st Situation:
If I have 5 batches of this item in the period (and they do not have this component class: overhead). How would the cost transactions be?
And a second example for me to understand if there is a difference:
2nd Situation:
If the 5 batches have component class: Overhead. How would the cost transactions be?
Thank you