Basics of OPM Financials (Oracle Webcast)

2009 Oracle Corporation Proprietary and Confidential
Oracle Process Manufacturing (OPM)

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Basics of OPM Financials

Minky Wilhelm Oracle Senior Technical Support Engineer
Objectives
To provide an overview of the OPM Financials processes To describe the basic flow and the major processes involved in OPM Financials To describe the basic troubleshooting information used in OPM Financials
Reported problem
We are using Actual Costing and we find that our miscellaneous receipts is not included in the item cost. This is a problem since we need to account for all transactions.
OPM Financials 2 parts

Costing
How much does an item cost?
Accounting
What are the journal entries for the transactions?
General Flow
Business Flow
Transact Pos, Sos, prod batches
OPM Financials Flow

Transactions Pos, Sos, prod batches
Get/Set Item Costs
Item Costs
-Standard -Actual (PMAC, PWAC, PPAC)
-Lot
Book transaction / journal entry (subledger journals)
Book transaction to subledger journals -Cost Update -OPM Accountitg Preprocessor (Subledger Update in
11i)
Post to GL
Post to GL - Create Accounting
Costing
Standard Costing
Costs are computed based on Recipes/Formulae/Routings
Actual Costing
Costs are computed based on Actual Transactions
Lot Costing
Costs are computed at item, org and lot level based on Actual Transactions
Standard Costing
Based on a formula/recipe A standard cost is pre-set for the raw materials and, using a formula, these costs are rolled-up to get the product cost
A ??
B ??
C $1
D $1
E $2
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Standard Costing Tech Basic

Executable name: GMCROLL in 11i GMFROLL in R12 Major Tables used: -- formula: fm_form_mst_b -- recipe validity: fm_form_eff -- costs written to: cm_cmpt_dtl -- error messages: cm_rlup_msg -- control file: cm_rlup_ctl
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Actual Costing
Periodic process not perpetual Supported Cost Methods Period Moving Average Cost (PMAC) Period Weighted Average Cost (PWAC) Perpetual Weighted Average Cost (PPAC) Last Invoice Cost (LSTI) Last Transaction Cost (LSTT)
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Average Cost
Takes the actual costs in the transactions for the period and compute the average to arrive at item cost Basic formula
Average Cost = Sum of (Trans Qty * Price) ------------------------------------Sum of Trans Qty
Example:
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PMAC
Period Moving Average Cost Includes prior period cost and inventory balance
Period Moving Average cost = (Prev Cost * Prev Qty) + Sum of (Trans Qty * Price) --------------------------------------------------------------------Prev Qty +Sum of Trans Qty
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Actual Costing Tech Basic

Executable: GMCACOST (11i), GMFACOST (R12) Major tables used: -- transaction tables -- IC_TRAN_PND, IC_TRAN_CMP in 11i, -- MTL_MATERIAL_TRANSACTIONS in R12 -- inventory balances -- IC_PERD_BAL in 11i -- GMF_PERIOD_BALANCES in R12 -- cost information written to: -- CM_CMPT_DTL -- CM_ACST_LED -- errors: CM_ACER_MSG -- control information: CM_ACPR_CTL
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Lot Costing
Costs are computed at item, org and lot level based on Actual Transactions Every lot has a unique cost associated with it and that lot retains this cost until the entire lot is consumed Not periodic
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Lot Costing Tech Basic

Package: GMF_LOT_COSTING_PUB Filename: GMFPLCRB.pls Major tables gmf_lot_costed_items gmf_material_lot_cost_txns gmf_lot_costs gmf_lot_cost_details
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Item Costs screen

OPM Financials > Item Costs
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Cost Rollup
Navigation : Standard Costs -> Cost Rollup
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Cost Rollup
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Actual Costing
Navigation : Actual Costs-> Actual Cost Process
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Lot Costing
Navigation : Lot Costs-> Lot Cost Process
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OPM Financials 2 parts

Costing
How much does an item cost?
Accounting
What are the journal entries for the transactions?
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Accounting
Example:
Under Purchasing, received order for item A with qty = 100. Assuming item cost = $2 (for each item) Accounting entries for this will be: Dr. Inventory Inspection Account (01-2345-22222-000) Cr. Accrued Accounts Payable (01-2345-23333-000 200 200
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Accounting in R11i
Cost Update
- Creates the cost records to be used by the subledger
Subledger Update
Generates distributions for transactions in Process Orgs
GL Export
Exports subledger data to General Ledger
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Accounting in R11i Tech Basic

Cost Update
Executable: CMCCUPD (in R11i), Records written to: gl_item_cst, gl_item_dtl Error messages: cm_cupd_msg Control file: cm_cupd_ctl
Subledger Update
- Executable: GMGUPD - Records written to: gl_subr_tst (Test Subledger Update) gl_subr_led (Final/Actual Subledger Update) - Error messages: gl_mesg_tbl - Control file : gl_subr_sta
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Accounting in R11i Tech Basic

GL Export
- Executable: GMGGL - Records written to: gl_interface - Error messages: gl_updt_msg - Control file : gl_updt_ctl
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Accounting in R12
Cost Update
Creates the cost records to be used by the subledger
OPM Accounting Preprocessor

Generates distributions for transactions in Process Orgs and feeds data to SLA.
Create Accounting
Creates the Subledger Accounting records which are later on fed to the General Ledger
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Accounting in R12 Tech Basic

Cost Update
Creates the cost records to be used by the subledger Table names and executable name are the same in R11i and R12

- Executable: GMFXUPD
- Major tables: gmf_xla_extract_headers gmf_xla_extract_lines - Error messages: gl_mesg_tbl - Control file : gl_subr_sta
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Cost Update
11i Navigation : MAC-> Cost Update R12 Navigation : Cost Update
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Navigation : OPM Accounting Preprocessor
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Create Accounting
Reports > Standard > Run > Submit > Create Accounting
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Subledger Accounting
ENTITY
(eg Purchasing)
Example: EVENT Under Purchasing, received order for item A with qty = 100. Assuming item cost = $2 (for each item) Accounting entries for this will be: Dr. Inventory Inspection Account (01-2345-22222-000) 200 Cr. Accrued Accounts Payable (01-2345-23333-000)
(eg PO Receipt)
JOURNAL LINE TYPE

(eg ISP, AAP)
Journal Line Definition

Ties line type and rule
200 Account Definition Rule (ADR)
How to derive the specific account code
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Other SLA Information

LEDGER
SUBLEDGER ACCTNG METHOD
APPLICATION ACCTNG DEFINITION
To complete the SLA picture and tie the account information to your company and ledger, the JLDs have to be attached to an AAD which is associated to an SLAM that belongs to the ledger.
Journal Line Definition
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Basic Troubleshooting Information

Debug log
-- Profile name : GMF: Concurrent Log Flag (sometimes named 'GMF: Debug Log Level) in R12: 'GMF: Concurrent Debug Flag') -- set profile value to 3 -- if profile is missing, refer to Note 230743.1 (Using Debug mode to analyze OPM Financial Processes)
Error messages
-- as seen in the View Error Messages screen of a process -- export from screen or dump through SQL query -- should come from the same run as the debug log
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Versions
-- Report using Diagnostics: Apps Check -- or through the adident or strings command in Unix: strings $GMF_TOP/bin/GMFACOST | grep Head | sort -- for forms, the About Oracle Applications information can be used -- later versions of the OPM Financials processes in R12 already include the important file versions in the log
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Trace file
-- For forms: These steps are same in 11i and R12. Navigation : Menu-> Help ->Diagnostics -> Trace > Trace with Binds -- For concurrent processes: A. Responsibility -> System Administrator ->Program -> Define ->Query for the Program name. Enable the checkbox for trace in the Request. Save the record. Run process. B. Initializing a session trace using profile option: 'Initialization SQL Statement - Custom' Refer to Note 787724.1 (How to Obtain Trace with Binds in E-Business Suite) for more information
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Other Troubleshooting Information

Incorrect item cost -- what is the computed cost -- what is the expected cost -- for Actual Costing: output of scripts (ac_dtls.sql for 11i, r12_ac_item_cost_details.sql for R12) If issue involves a batch cost (Actual Costing): -- has batch been relayered? -- output of Batch Cost Details Report
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Other Troubleshooting Information

For accounting issues, either in 11i (Subledger Update) or R12 (OPM Acctg. Preprocessor): Run the process for a particular source and small date range to include above transaction. This way we have the smallest data that replicates the issue. If errors are encountered in SLA (ie missing account, no code combination), check the ADR against the OPM Preprocessor generated data
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Feedback
Please let us know how we are doing by providing the following: 1. 2. 3. 4. Based on the webcast description, how did your learning experience compare to what you expected when you began the webcast? Would you recommend the recording for this webcast to your colleagues? What topics specifically would you like to see covered in the Demantra Solutions Webcasts? Will you attend future Advisor Webcasts?
Email your feedback to jamie.binkley@oracle.com or bonnie.adam@oracle.com.
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THANK YOU
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2009 Oracle Corporation Proprietary and Confidential

Oracle Process Manufacturing (OPM)

Upcoming OPM Community Webcasts:

2009 Oracle Corporation Proprietary and Confidential

Safe Harbor Statement

2010 Oracle Corporation Proprietary and Confidential

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