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CostManagement
SubmittedbyAnonymousonFri,04/03/200918:56 Tag: CostManagement /
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CostmanagementisatermthathasbeenpopularizedbyCAMI(ConsortiumForAdvancedManufacturing
International).Costmanagementissaidtobeamorecomprehensiveconceptthancostaccountinginthatthe
emphasisisonmanagingandreducingcostsratherthanreportingcosts.Inotherwords,itisalongrun
proactiveapproachratherthanashortrunreactiveapproach.Forexample,agreatdealofattentionisgivento
reducingcostsatthedesignstageofaproduct'slifecycleratherthansimplyattemptingtomeasureandcontrol
costduringtheproductionstage.
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OracleCostManagementisafullabsorption,perpetual,andperiodiccostsystemforpurchasing,inventory, Inputformat
workinprocess,andordermanagementtransactions.CostManagementsupportsmultiplecostelements,
costedtransactions,comprehensivevaluationandvariancereporting,andthoroughintegrationwithOracle Fileattachments
Financials. Save Preview

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INVENTORYVALUATIONMETHODS ForumPost Comments

Thefourinventoryvaluationmethodsthatappearinfig.shown@
http://www.oracleug.com/userguide/costmanagement/basicscostmanagement InvoiceFirstTime
arearrangedintheorderoftheamountofcostthatistracedtotheinventory.Thethroughputmethodinvolves Productfamilies
MatchRate
tracingtheleastamountofcosttotheinventory,whiletheactivitybasedmethodincludestracingthegreatest Destinationlocation
amountofcoststotheinventory.Indirect(orvariable)costing,agreateramountofcostistracedthaninthe requirescustomers
throughputmethod,butalesseramountthaninthefullabsorptionmethod.Directcostingandfullabsorption ServiceItems
associationinthesource
costingarethetraditionalmethods,whilethethroughputandactivitybasedmethodsarerelativelynew.These organization
inventoryvaluationmethodsareveryimportantbecausetheycontrolthemannerinwhichnetincomeis
HowtoCapturePO
determined.Oracleprovidesfullabsorptionmethod. SerialandLotcontrol
numberatreceipt

FlagforCycle
CostingMethods
countatPick
CostManagementsupportsfourperpetualcostingmethods:StandardCosting,AverageCosting,FIFOCosting, serialandlotcontrol
Confirmifnotthere
andLIFOCosting.YoucanusetheAverageCostingmethodforoneorganizationandtheStandardCosting
(Item/Lot)
methodforanotherorganization.
MappingforPO
Whatissignificanceof
Numberentrywith
referencedflaginrouting?
InvReceipt
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OracleEBSModules

OracleInventory

OrderManagement

OraclePurchasing

CostManagement

AccountsPayable

BasicsofPL/SQL

YoucanuseFIFOCosting,whichisbasedontheassumptionthatthefirstinventoryunitsacquiredarethefirst GeneralLedger
unitsused.YoucanuseLIFOCosting,whichisbasedontheassumptionthatthelastinventoryunitsacquired
AccountReceivables
arethefirstunitsused.CostManagementalsosupportsPeriodicCosting.
OracleCostManagementdoesnotsupportcostingforprocessinventoryorganizations. ASCP

PERIODICVS.PERPETUALINVENTORYSYSTEMS OracleiExpenses

OracleBasics

OracleiProcurement

BillsofMaterial

ConfiguretoOrder

OracleRelease12

WarehouseManagement

BasicsofSQL

FormsBuilder

OracleProjects
Therearefundamentaldifferencesforaccountingandreportingmerchandiseinventorytransactionsunderthe MasterScheduling/MRP/SCP
periodicandperpetualinventorysystems.Torecordpurchases,theperiodicsystemdebitsthePurchases
accountwhiletheperpetualsystemdebitstheMerchandiseInventoryaccount.Torecordsales,theperpetual OracleAssets
systemrequiresanextraentrytodebittheCostofgoodssoldandcreditMerchandiseInventory.Byrecording
HRMS
thecostofgoodssoldforeachsale,theperpetualinventorysystemalleviatedtheneedforadjustingentriesand
calculationofthegoodssoldattheendofafinancialperiod,bothofwhichtheperiodicinventorysystem OracleiStore

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requires.
Implementationinproduction

CostType EnterpriseAssetManagement
Costareof2Types:
MultiOrg(MultipleOrganizations)
FrozenCost:FrozenCostisthecostatwhichinventorytransactionsarecosted
SimulatedCost:SimulatedCostsareusedtosimulatecostscenariostoarriveatthebestestimateofstandard OracleApplicationsArchitecture(SysAdmin)
costOracleprovidesaseededsimulatedcostPending.Unlimitednumberofsimulatedcosttypescanbe
definedinthesystem DataMigration

CostStructure OracleLoan
Acoststructureisthecollectionofdefinitionsandmethodsusedtocostinventory,billsofmaterial,andworkin
IndiaLocalization
process.Thecoststructureiscomposedof:
AllBooks
Organizations
Costorganizationsandsharedcosts
GeneralLedgeraccounts
Costelements
Subelements
Activities
Basistypes

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Components and Semiconductors
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BasicsofCostManagement
CostingSetup

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ItemCosting
StandardCosting
RevenueandCOGSMatching

BasicsofCostManagement

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