Oracle Cost Management

Oracle Cost Management is a comprehensive solution that helps organizations project costs and perform cost accounting for supply chain transactions. These activities serve as a key component for complying with regulatory reporting and accounting requirements, streamlining the use of working capital in organizations, and improving profitability for businesses. Oracle Cost Management is part of the Oracle E-Business Suite, an integrated set of applications that are engineered to work together.

This chapter describes the following test flows in Oracle Cost Management:

• Inter-organization Transfers -Standard to Average costing organizations- FOB Receipt-Sub-inventory-Asset-Asset
• Inter-organization Transfers -Standard to Last-in, First-out (LIFO) costing organizations- FOB Receipt-Sub-inventory-Asset-Asset
• Inter-organization Transfers -Standard to First-in, First-out (FIFO) costing organizations- FOB Receipt-Sub-inventory-Asset-Asset
• Purchase Order Receipt - Asset Item- Asset-Sub-inventory-Average Costing Organization
• Purchase Order Receipt-Asset Item- Asset-Sub-inventory-Standard Costing Organization
• Standard Discrete Job - Standard Costing Organization
• Standard Discrete Job - Average Costing Organization
• Sales Invoice and Revenue Recognition - Standard Costing Organization

Prerequisites

• Organization parameters.
• Receiving parameters.
• WIP parameters.
• BOM parameters.
• Shipping parameters.
• Open inventory accounting period.
• Open GL period.
• Open AP period.
• Open PO period.
• Open AR period.

Profile Options

Not applicable.

Predefined Data

Table 26-1 Predefined Data for Oracle Cost Management

Window Name	Field Name	Field Value
Responsibility	Responsibility Name	Manufacturing and Distribution Manager
GL - Accounting Setup Manager -Ledger	Ledger Name	Vision Operations
Item Costs	Cost Element	Material
Item Template	Template	Purchased Item
Sub-Inventory	Sub-Inventory Code	Store

Setup Data

Not applicable.

26.1 Inter-Organization Transfers -Standard to Average Costing Organizations- FOB Receipt-Sub-Inventory-Asset-Asset

Transfers materials from standard to average costing organizations within the operating unit, where shipping network is FOB Receipt, and verifies the distributions for all transactions.
Prerequisites
Organizations are standard and average costing organizations.
Shipping network is FOB-receipt.
Profile Options
Not applicable.
Predefined Data

Table 26-2 Predefined Data for Inter-Organization Transfers -Standard to Average Costing Organizations- FOB Receipt-Sub-Inventory-Asset-Asset Flow

Window Name	Field Name	Field Value
Organization Parameters	Costing Method	Standard and Average

Setup Data

Table 26-3 Setup Data for Inter-Organization Transfers -Standard to Average Costing Organizations- FOB Receipt-Sub-Inventory-Asset-Asset Flow

Window Name	Field Name	Field Value
Organization	Organization	M1- Seattle Manufacturing (Standard costing Enabled organization)
	Organization	AVG - Average Organization (Average costing Enabled organization)
Master Items	Template	Purchased Item Template

26.2 Inter-Organization Transfers -Standard to Last-in, First-out (LIFO) Costing Organizations- FOB Receipt-Sub-inventory-Asset-Asset

Transfers material from standard to LIFO (Last-In, First-out) costing organization within the operating unit, where shipping network is FOB receipt, and verifies the distributions for all transactions.
Prerequisites

• Organizations are standard and average costing organizations.
• Shipping network is FOB-receipt.

Profile Options
Not applicable.
Predefined Data

Table 26-4 Predefined Data for Inter-Organization Transfers -Standard to Last-in, First-out (LIFO) Costing Organizations- FOB Receipt-Sub-inventory-Asset-Asset Flow

Window Name	Field Name	Field Value
Organization Parameters	Costing Method	Standard and LIFO

Setup Data

Table 26-5 Setup Data for Inter-Organization Transfers -Standard to Last-in, First-out (LIFO) Costing Organizations- FOB Receipt-Sub-inventory-Asset-Asset Flow

Window Name	Field Name	Field Value
Organization	Organization	M1- Seattle Manufacturing (Standard Costing Enabled Organization)
	Organization	M6 - Phoenix Manufacturing (LIFO Costing Enabled Organization)
Master Items	Template	Purchased Item Template

26.3 Inter-Organization Transfers -Standard to First-in, First-out (FIFO) Costing Organizations- FOB Receipt-Sub-Inventory-Asset-Asset

Transfers material from standard to FIFO (First-In, First out) costing organization within the operating unit, where shipping network is FOB receipt, and verifies the distributions for all transactions.
Prerequisites

• Organizations are standard and FIFO (First-in, First-out) costing enabled organizations.
• Shipping network is FOB-receipt.

Profile Options
Not applicable.
Predefined Data

Table 26-6 Predefined Data for Inter-Organization Transfers -Standard to First-in, First-out (FIFO) Costing Organizations- FOB Receipt-Sub-Inventory-Asset-Asset Flow

Window Name	Field Name	Field Value
Organization Parameters	Costing Method	Standard and FIFO

Setup Data

Table 26-7 Setup Data for Inter-Organization Transfers -Standard to First-in, First-out (FIFO) Costing Organizations- FOB Receipt-Sub-Inventory-Asset-Asset Flow

Window Name	Field Name	Field Value
Organization	Organization	M1- Seattle Manufacturing (Standard Costing Enabled Organization)
	Organization	M7- New Orleans Manufacturing (FIFO Costing Enabled Organization)
Master Items	Template	Purchased Item Template

26.4 Purchase Order Receipt - Asset Item- Asset-Sub-Inventory-Average Costing Organization

Creates on hand stock through purchase order receipts and verifies the distributions in an average costing organization.
Prerequisites

• Organization is average costing enabled organization.
• Sub-inventory is asset sub-inventory.
• Tax setup is disabled.

Profile Options
Not applicable.
Predefined Data

Table 26-8 Predefined Data for Purchase Order Receipt - Asset Item- Asset-Sub-Inventory-Average Costing Organization Flow

Window Name	Field Name	Field Value
Organization Parameters	Costing Method	Average
Purchase Order	Type	Standard Purchase Order

Setup Data

Table 26-9 Setup Data for Purchase Order Receipt - Asset Item- Asset-Sub-Inventory-Average Costing Organization Flow

Window Name	Field Name	Field Value
Organization	Organization	AVG - Average Organization
Master Items	Template	Purchased Item Template
Supplier	Supplier Name	Use Supplier as "Office Supplies, Inc." for creating Purchase Orders and site as "NEW YORK"

26.5 Purchase Order Receipt-Asset Item- Asset-Sub-Inventory-Standard Costing Organization

Creates on hand stock through purchase order receipts and verifies the distributions in a standard costing organization.
Prerequisites

• Organization is average costing enabled organization.
• Sub-inventory is asset sub-inventory.
• Tax setup is disabled.

Profile Options
Not applicable.
Predefined Data

Table 26-10 Predefined Data for Purchase Order Receipt-Asset Item- Asset-Sub-Inventory-Standard Costing Organization Flow

Window Name	Field Name	Field Value
Organization Parameters	Costing Method	Standard
Purchase Order	Type	Standard Purchase Order

Setup Data

Table 26-11 Setup Data for Purchase Order Receipt-Asset Item- Asset-Sub-Inventory-Standard Costing Organization Flow

Window Name	Field Name	Field Value
Organization	Organization	M1- Seattle Manufacturing
Master Items	Template	Items are created through Purchased Item template
Supplier	Supplier Name	Use Supplier as Office Supplies, Inc. for creating purchase orders and site as NEW YORK.

26.6 Standard Discrete Job - Standard Costing Organization

Creates on hand stock for the components through purchase order receipts, creates and releases standard discrete job, performs the move, issues the material, completes WIP, closes the job and verifies distributions for all the transactions in a standard costing organization.
Prerequisites

• Organization is standard costing organization.
• Sub-inventory is asset sub-inventory.
• Discrete job type is Standard.
• 3 components and 1 assembly.
• 3 resources and 3 departments.
• Tax setup is disabled.

Profile Options
Not applicable.
Predefined Data

Table 26-12 Predefined Data for Standard Discrete Job - Standard Costing Organization Flow

Window Name	Field Name	Field Value
Item Template	Template	Purchased Item Finished Good
Purchase Order	Type	Standard Purchase Order

Setup Data

Table 26-13 Setup Data for Standard Discrete Job - Standard Costing Organization Flow

Window Name	Field Name	Field Value
Organization	Organization	M1- Seattle Manufacturing
Master Items	Components	Components are created through Purchased Item template
Master Items	Assembly	Assembly is created through Finished Good template
Supplier	Supplier Name	Use Supplier as Office Supplies, Inc. for creating purchase rrders and site as NEW YORK.
WIP Accounting Classes	Define Ledger Accounts	Discrete

26.7 Standard Discrete Job - Average Costing Organization

Creates on hand stock for the components through purchase order receipts, creates and releases standard discrete job, performs the move, issues the material, completes WIP, closes the job and verifies distributions for all the transactions in an average costing organization.
Prerequisites

• Organization is standard costing organization.
• Sub-inventory is asset sub-inventory.
• Discrete job type Standard.
• 3 components and 1 assembly.
• 3 resources and 3 departments.
• Tax setup is disabled.

Profile Options
Not applicable.
Predefined Data

Table 26-14 Predefined Data for Standard Discrete Job - Average Costing Organization Flow

Window Name	Field Name	Field Value
Organization Parameters	Costing Method	Average
Purchase Order	Type	Standard Purchase Order

Setup Data

Table 26-15 Setup Data for Standard Discrete Job - Average Costing Organization Flow

Window Name	Field Name	Field Value
Organization	Organization	M3
Master Items	Components	Components are created through Purchased Item template
	Assembly	Assembly is created through Finished Good template
Supplier	Supplier Name	Use Supplier as Office Supplies, Inc. for creating purchase orders and site as NEW YORK.
WIP Accounting Classes	Define Ledger Accounts	Discrete

26.8 Sales Invoice and Revenue Recognition - Standard Costing Organization

Creates on hand stock for components through purchase order receipt, books the sales order, issues the material to customer, identifies the COGS and revenue, and verifies distribution for all the transactions.
Prerequisites

• Organization is standard costing organization.
• Sub-inventory is asset sub-inventory.

Profile Options
Not applicable.
Predefined Data

Table 26-16 Predefined Data for Sales Invoice and Revenue Recognition - Standard Costing Organization Flow

Window Name	Field Name	Field Value
Item Template	Template	Finished Good
Enter Price List	Price List Name	Corporate

Table 26-17 Predefined Data for Sales Invoice and Revenue Recognition - Standard Costing Organization Flow

Concurrent Request Name	Parameter	Parameter Values
Workflow background Process	Item Type Process Deferred Process Timed out	OM Order Line Yes No
Autoinvoice Master Program	Invoice Source Default Date	Order Entry Enter as per requirement
Revenue Recognition Master Program
Record Order Management Transactions	Ledger	Vision Operations (USA)
Collect Revenue Recognition Information	Ledger Start Date End Date	Vision Operations (USA) Enter as per requirement Enter as per requirement
Generate COGS Recognition Events	Ledger	Vision Operations (USA)

Setup Data

Table 26-18 Setup Data for Sales Invoice and Revenue Recognition - Standard Costing Organization Flow

Window Name	Field Name	Field Value
Organization	Organization	M1- Seattle Manufacturing
Master Items	Assembly	Item is created through Finished Good template
Purchase Order	Type	Standard Purchase Order.
Supplier	Supplier Name	Use Supplier as Office Supplies, Inc. for creating purchase orders and site as NEW YORK.
Customer	Customer Name	User Customer as Computer Service and Rentals for creating Sales Order.
Unit of Measure	Code	EA