Cost Accounting As You Want It ─ EBS R12 Cost Accounting with SLA Collaborate09 May 3 - 7, 2009 Diane Streubel [email protected]Schreiber Foods Manager for Cost & Systems Development OAUG Process MFG Cost Sub-Committee Lead Douglas Volz [email protected]Douglas Volz Consulting, Inc. President / Managing Director OAUG Discrete MFG Cost Sub-Committee Lead
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Cost Accounting As You Want It ─ EBS R12 Cost Accounting with SLA
4. Create a journal lines definition(link the journal line type to the account derivation rule)
5. Create an application accounting definition(copy an existing definition and modify it and then validate it)
6. Create a subledger accounting method (SLAM) (copy “standard accrual” and create a new one)
7. Assign the new SLAM to a Ledger
Subledger Accounting Method (SLAM) Setup Steps
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Event Model: definition of the subledger transaction types and lifecycle– Entity : Classification of source of transaction
– Event Class: Classifies transaction types for accounting rule purposes
– Event Type: for each transaction type, defines possible actions with accounting significance
ENTITY Material Transaction, Receiving or WIP or Write Off
EVENT CLASS
Logical grouping of events which have similar kind of accounting
EVENT TYPE
The most granular level of business event which has accounting impact
Key Concepts for SLA Transaction Types
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JOURNAL ENTRY SETUPS
Define/copy and modify journal line types
Define/copy and modify account derivation rules
Define/copy and modify descriptions
PROCESS
Enter Transaction(s)
Cost Manager
Create Accounting* Transfer Journal Entries to GL
*Run ‘Create Accounting – Cost Management’ concurrent request for accounting all transactions from the Cost Management – SLA responsibil ity. Receiving Accounting can be generated in the Purchasing responsibil it ies using the ‘Create Accounting – Receiving’ concurrent request.
These requests have an option to transfer the entries created to General Ledger. A separate process is also available.
Setup and Process
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Transactions
Accounting Events
Cost Management SLA
AccountingConfigurations
SubledgerBalances
SubledgerJournal Entries
AccountingProgram
Journal Entry Setup
GLJournal Entriesand Balances
Setup and Process
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SLA Accounting Tables
Enter Transaction(s)
Basic Table Structure for SLA
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Transaction Accounting Tables
Cost Manager
XLA_AE_HEADERS
XLA_AE_LINES
XLA_DISTRIBUTION_LINKS
XLA_EVENTS
Same Cost Transaction Accounting
Tables
Create Accounting
GL_INTERFACE
G/L Tables
GL_LEDGERS
GL_JE_HEADERS
GL_JE_LINES
GL_JE_BATCHES
One Common Accounting Subledger
Table
Case Example:
Product Line Accounting for Discrete and Process Costing
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Say there are two brands of cell phones, Samsung and Nokia
• We want to track variances by cell phone brands
• We are going to use 2 different ways to address this same requirement
– Cost/SLA mapping set capability(works for Discrete and Process Costing)
– Category Accounting – R11i Cost Accounting migrated to SLA in R12.1 (only works with Discrete Costing)
Example: Purchase Price Variance product Line
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Cost/SLA Mapping Set Capability
(for Discrete and Process Costing)
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• Product Line Setup Steps Using SLA mapping set
1. Create the product line information in your item master
2. Enter your SLA account derivation rule for Purchase Price Variance accounts
3. Associate the new account derivation rule to your Journal Line Type
4. Associate the Application Accounting Definition with Subledger Accounting Method
Cost SLA Mapping Set Capability: PPV by product Line
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• Product Line Accounting – Descriptive flexfield
Cost/SLA Mapping Set Capability
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• Product Line Accounting – Item Descriptive FF
Cost/SLA Mapping Set Capability
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• Assign product line code to the inventory item
Cost/SLA Mapping Set Capability
TIP: you can use an existing product line category set to populate your item master DFF, you do not need to enter this one-by-one
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• Mapping set – Account Derivation Rule
Cost/SLA Mapping Set Capability
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• Mapping set – Account Derivation Rule
Cost/SLA Mapping Set Capability
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• SLA Journal Line / Derivation Rule
Cost/SLA Mapping Set Capability
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• Associate Journal Lines Definition to the Event Class
Cost/SLA Mapping Set Capability
Don’t forget to validate your new AADs
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• Note the same ADR is usable for Standard Cost Update
Cost/SLA Mapping Set Capability
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• Note the same ADR is usable for Standard Cost Update
Cost/SLA Mapping Set Capability
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• Associate SLA Definition to the SLA Method/Ledger
Cost/SLA Mapping Set Capability
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• The material subledger from 11i still exists
Cost/SLA Mapping Set Capability
Inventory
Inventory
PPV
Receiving
Matl Overhead Absorption
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• SLA Entries That Go to Your G/L
Cost/SLA Mapping Set Capability
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• For the Standard Cost Updates That Go to Your G/L
Cost/SLA Mapping Set Capability
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Category Accounting – Discrete Cost Accounting migrated to SLA in R12.1
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• Create a new structure under the key flexfield “Item Category”
Product Line Category Accounting
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• Create a new structure under the key flexfield “Item Category”
• Create category codes
Product Line Category Accounting
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• Create a new structure under the key flexfield “Item Category”
• Create category codes
• Create category set
Product Line Category Accounting
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• Create a new structure under the key flexfield “Item Category”
• Create category codes
• Create category set
• Assign “Product Line Accounting” functional area category set
Product Line Category Accounting
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• Assign product line category accounts
Product Line Category Accounting
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• Account Derivation Rule would have used a source directly
Product Line Category Accounting
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• Summary Notes
– Product line accounting can be achieved in many ways without using the Costing Hook.
– In R12 SLA is the Oracle R12 accounting platform and Costing supplies application sources from INV, WIP, RCV… to build the accounting journals.
– One caveat: Pre-Release 12 subledger accounting reports are reading data from Costing distribution layer (such as the Material Account Distribution Summary or Detail Reports). Those reports will not show SLA journals. SLA provides a set of new accounting reports (such as Journal Entries Report, Accounting Analysis Report…) which can be modified as desired using BI Publisher.
Product Line Category Accounting
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• Inventory Period Close Process– Inventory interim G/L transfer has been replaced by SLA
– The Inventory Accounting Period close works just like it did before, however, SLA now sends accounting information to the general ledger
• Upgrade Process– Customers have option of migrating the whole historical data to
SLA or choose which periods data to be migrated.
– Customers get option to either upgrade in downtime when upgrading or anytime after the upgrade process.
– Default for Cost management is to migrate the present calendar year data to SLA.
Discrete Inventory Period Close and Upgrade
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Acknowledgements of assistance:
• Herve Yu – Oracle Cost Management Development Manager
• Audrea Auld – Oracle University Senior Financials Instructor
• Russell Bayles – Oracle Principal Product Strategy Manager
• Michel Basinet – Oracle Director Fusion Costing Product Strategy
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• R12 Oracle Process Manufacturing Cost Management - User Guide
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THANK YOUTHANK YOU
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Appendix
• Professional Background for Diane Streubel
• Professional Background for Douglas Volz
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Diane Streubel
Professional Background
Diane Streubel is the Cost & Systems Development Manager for Schreiber Foods. A process manufacturing company, Schreiber is the world’s largest supplier of private label dairy products and has been using Gemms/OPM for the past 13 years. Diane has been involved with OPM from it’s inception at Schreiber with Gemms 3.1. She has been involved in implementing additional products within Oracle at Schreiber and has played a key role in all of the upgrades within the company. Schreiber Foods is currently at 11.5.10.
Diane is also actively involved in the Process Manufacturing SIG. She has been the Costing Sub-Committee chairperson and the Membership chairperson for the Process SIG since 2001. As the Process SIG Enhancements chairperson, she has worked with the Process Manufacturing team at Oracle to develop and coordinate an Enhancements Voting process each year since 2001. She has been on the paper selection team for OAUG conferences for the past four years. Diane has also presented numerous papers at OpenWorld and OAUG conferences over the past several years on OPM Costing topics.
Core Expertise• Upgrades for Process Manufacturing• Project Management • Core manufacturing processes
OPM Cost Management OPM Inventory OPM Formulas
ExperienceWithin Schreiber Foods:• Responsible for OPM Costing and Inventory testing and
validations for all upgrades• Develop and improve processes within Company related
to Costing, Inventory and Formulas• Establish Cost Accounting methods, cost and production
formula structures, inventory and production transaction processes and system documentation.
• Train Finance employees at 17 plant facilities on OPM processes
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Douglas Volz
Professional Background
Doug Volz is a Senior Architect and Advisor for Oracle Application projects, with a particular interest in Project and Cost Management. He has 30 years experience, including 5 years in Oracle Development (co-designing Oracle Cost Management), 12 years in industry for manufacturing and distribution companies, and 14 years consulting. His Manufacturing and Cost systems experience covers project management, software design/development, delivery and consulting services, for both Oracle Corporation, and multiple international consulting firms. Prior to his systems career, Mr. Volz also held numerous management accounting positions for telecommunications, defense, and electronics firms.
In his consulting roles, Doug has served over 100 clients. Many of these were multi-org, multi-currency with global footprints. Countries include US, Mexico, UK, Netherlands, Belgium, Taiwan, P.R.O.C., Norway, Japan and Germany.
Doug leads the Cost Sub-Committee, for the OAUG Discrete Manufacturing Special Interest Group.He also advises and participates on the Oracle Customer Advisory Board for Fusion Costing and for the Fusion SCM Strategy Council.