Release 11i.2 Cost Management Functional Transfer of Information. Kaity Rasmussen
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2 Release 11i.2 Cost Management Functional Transfer of Information Kaity Rasmussen
3 New Features FIFO/LIFO Costing Supply Chain Rollup Operations Yield Costing
4 Business Need for FIFO/LIFO Costing Some companies think that either FIFO or LIFO provides more accurate costing than Average Costing. Some industries traditionally use FIFO costing.
5 Major features of FIFO/LIFO Costing Two new costing methods Inventory Organizations can be FIFO, LIFO, Average, or Standard Costing. Organizations with different costing methods can transfer inventory to each other. You can use Periodic Costing in addition to either perpetual costing method
6 Major features of FIFO/LIFO Costing All the functionality of Average Costing All manufacturing transactions supported Same look and feel in transaction forms Unlimited cost types for simulations as in Standard Costing
7 Major features of FIFO/LIFO Costing (cont.) Mixed mode manufacturing including Project Manufacturing and Flow Projects inherit the costing method of the Inventory Organization Layer Costs are held for each Project Cost Group Flow manufacturing looks and feels the same regardless of the costing method.
8 Major features of FIFO/LIFO Costing (cont.) Layer Cost Updates You update costs separately by layer. You can update cost elements by level.
9 Major features of FIFO/LIFO Costing All the reports and inquiries Inventory reports have the same look and feel. You can view the transactions affecting each layer.
10 Setup for FIFO/LIFO Costing Select LIFO or FIFO as the costing method for the new organization. Setup is nearly identical to an Average Costing Organization.
11 New Features FIFO/LIFO Costing Supply Chain Rollup Operations Yield Costing
12 Supply Chain Cost Rollup What is it? A new concurrent program On top of perpetual costing Launched similarly to Assembly Rollup With results held in a Cost Type
13 Supply Chain Cost Rollup Major Features Uses existing costs to minimize data input. Allows infinite Cost Types. Allows infinite sourcing rules. Provides detail and summary reports. Facilitates updating frozen costs.
14 Supply Chain Cost Rollup What value does it provide? Provides simluation for the enterprise Combines cost for buying and making items Can be use to create a global standard cost
15 Supply Chain Cost Rollup What differentiates it from Assembly Rollup? Combines MRP sourcing rules with BOM structures Cost rollup across organizations Different BOM structures by organization Flexible cost setup Automatic currency conversion
16 Supply Chain Cost Rollup Numerical Example BOM/Cost Structure Sourcing Rule Structure
17 Supply Chain Cost Rollup Numerical Example Supply Chain Cost Rollup Results
18 Supply Chain Cost Rollup How does it work? Setup user-defined costs and buy costs Define items, BOM, routings Define rollup and buy cost types Setup costs in rollup and buy cost types Setup MRP sourcing rules Define sourcing rules Assign sourcing rules to Assignment Set Run Supply Chain Cost Rollup
19 Coming Soon Define Item Buy Costs By Vendor By Vendor Site By Quantity Brackets Define shipping and markup costs for Shipping Networks And much more...
20 New Features FIFO/LIFO Costing Supply Chain Rollup Operations Yield Costing
21 Business Need for Operations Yield Costing Semiconductor Industry Yield cost is major part of total costs. Number of operations is high. Cost per operation is often high. Jobs need to split and merge. Scrapped items can be reused
22 Major features of Operations Yield Costing Yield Cost is calculated for each operation. Variance from expected yield is calculated at each operation. Routings can be very flexible. Scrap Cost is accurately tracked.
23 Major features of Operations Yield Costing (cont.) Reused scrapped items are tracked through a Bonus account. Lot Based jobs and discrete jobs can be in the same organization.
24 Setup for Operations Yield Costing Set up have much of the look and feel of discrete jobs. Separate WIP accounting classes allow the special costing for Lot Based Jobs.
25
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