cost accounting as you want it ebs r12 cost accounting with sla
Download
Skip this Video
Download Presentation
Cost Accounting As You Want It - EBS R12 Cost Accounting with SLA

Loading in 2 Seconds...

play fullscreen
1 / 58

Cost Accounting As You Want It - EBS R12 Cost Accounting with SLA - PowerPoint PPT Presentation


  • 297 Views
  • Uploaded on

Agenda. Oracle Discrete Costing SLA enhancements Oracle SLA ConceptsCase example: Product Line AccountingIf Time Allows: Oracle Process Costing MAC transitioning to SLA . Slide 2 Cost Accounting As You Want It - EBS R12 and SLA. Release 11i account recognition pain points\" eliminated by Su

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Cost Accounting As You Want It - EBS R12 Cost Accounting with SLA' - zuri


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
cost accounting as you want it ebs r12 cost accounting with sla

Cost Accounting As You Want It ─ EBS R12 Cost Accounting with SLA

UKOUG 2009 Conference Series November 30, 2009

Douglas [email protected]

Douglas Volz Consulting, Inc.

OAUG Discrete MFG Cost Sub-Committee Lead

agenda
Agenda
  • Oracle Discrete Costing SLA enhancements
  • Oracle SLA Concepts
  • Case example: Product Line Accounting
  • If Time Allows: Oracle Process Costing MAC transitioning to SLA

Slide – 2 Cost Accounting As You Want It ─ EBS R12 and SLA

slide3
Oracle Discrete Costing SLA enhancements: Increased Flexibility

Release 11i account recognition “pain points” eliminated by Subledger Accounting (SLA):

  • SLA removes limitations for recording COGS and Revenue (Cost Account Generator/workflow and A/R AutoAccounting are still in use)
  • Gives you the ability to record inventory and WIP accounts with more flexibility

Slide – 3 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 3 Cost Accounting As You Want It ─ EBS R12 and SLA

slide4
Oracle Discrete Costing SLA enhancements: Increased Flexibility

Flexible variance account recognition for:

  • Invoice price and purchase variances
  • Average cost adjustment
  • Standard cost adjustment
  • Manufacturing variances
  • Account aliases
  • Freight charges
  • Most other inventory, manufacturing and related account entries

Slide – 4 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 4 Cost Accounting As You Want It ─ EBS R12 and SLA

slide5
Oracle SLA Concepts

Slide – 5 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 5 Cost Accounting As You Want It ─ EBS R12 and SLA

slide6
Subledger Accounting Method (SLAM) Setup Steps
  • Determine sources of information for your account derivation rules (understand the underlying business logic and data)
  • Create account derivation rules (and optional mapping sets)
  • Create journal line types
  • Create a journal lines definition(link the journal line type to the account derivation rule)
  • Create an application accounting definition(copy an existing definition and modify it and then validate it)
  • Create a subledger accounting method (SLAM) (copy “standard accrual” and create a new one)
  • Assign the new SLAM to a Ledger

Slide – 6 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 6 Cost Accounting As You Want It ─ EBS R12 and SLA

slide7
Key Concepts for SLA Transaction Types

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 accounting

The most granular level of business event which has accounting impact

EVENT TYPE

Slide – 7 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 7 Cost Accounting As You Want It ─ EBS R12 and SLA

slide8
Setup and Process

PROCESS

JOURNAL ENTRY SETUPS

Enter Transaction(s)

Enter Transaction(s)

Define/copy and modify account derivation rules

Cost Manager

Cost Manager

Cost Manager

Define/copy and modify journal line types

Create Accounting*

Create Accounting*

Create Accounting*

Create Accounting*

Transfer Journal Entries to GL

Transfer Journal Entries to GL

Transfer Journal Entries to GL

Transfer Journal Entries to GL

Define/copy and modify descriptions

*Run ‘Create Accounting – Cost Management’ concurrent request for accounting all transactions from the Cost Management – SLA responsibility.

Receiving Accounting can be generated in the Purchasing responsibilities 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.

Slide – 8 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 8 Cost Accounting As You Want It ─ EBS R12 and SLA

slide9
GL

Journal Entries

and Balances

Transactions

Accounting Events

Accounting

Configurations

Subledger

Journal Entries

Journal Entry Setup

Subledger

Balances

SLA

Cost Management

Setup and Process

Accounting

Program

Slide – 9 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 9 Cost Accounting As You Want It ─ EBS R12 and SLA

Douglas Volz Consulting, Inc.

slide10
Basic Table Structure for SLA

Enter Transaction(s)

One Common Accounting Subledger Table

Same Cost Transaction Accounting Tables

Cost Manager

SLA Accounting Tables

G/L Tables

Transaction Accounting Tables

GL_LEDGERS

XLA_EVENTS

Create

Accounting

GL_JE_BATCHES

XLA_AE_HEADERS

GL_INTERFACE

GL_JE_HEADERS

XLA_AE_LINES

GL_JE_LINES

XLA_DISTRIBUTION_LINKS

Slide – 10 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 10 Cost Accounting As You Want It ─ EBS R12 and SLA

Douglas Volz Consulting, Inc.

case example product line accounting for discrete and process costing
Case Example: Product Line Accounting for Discrete and Process Costing

Slide – 11 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 11 Cost Accounting As You Want It ─ EBS R12 and SLA

slide12
Example: Purchase Price Variance product Line

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 – using an Item Master DFF
    • Category Accounting – R11i Cost Accounting migrated to SLA in R12.1 (only works with Discrete Costing)

Slide – 12 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 12 Cost Accounting As You Want It ─ EBS R12 and SLA

slide13
Cost/SLA Mapping Set Capability(for Discrete and Process Costing)

Slide – 13 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 13 Cost Accounting As You Want It ─ EBS R12 and SLA

slide14
Cost SLA Mapping Set Capability: PPV by product Line
  • Product Line Setup Steps Using SLA mapping set
    • Create the product line information in your item master
    • Enter your SLA account derivation rule for Purchase Price Variance accounts
    • Associate the new account derivation rule to your Journal Line Type
    • Associate the Application Accounting Definition with Subledger Accounting Method

Slide – 14 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 14 Cost Accounting As You Want It ─ EBS R12 and SLA

Douglas Volz Consulting, Inc.

slide15
Cost/SLA Mapping Set Capability
  • Product Line Accounting – Descriptive flexfield

Slide – 15 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 15 Cost Accounting As You Want It ─ EBS R12 and SLA

slide16
Cost/SLA Mapping Set Capability
  • Product Line Accounting – Item Descriptive FF

Slide – 16 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 16 Cost Accounting As You Want It ─ EBS R12 and SLA

slide17
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

Cost/SLA Mapping Set Capability

  • Assign product line code to the inventory item

Slide – 17 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 17 Cost Accounting As You Want It ─ EBS R12 and SLA

slide18
Cost/SLA Mapping Set Capability
  • Mapping set – Account Derivation Rule

Slide – 18 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 18 Cost Accounting As You Want It ─ EBS R12 and SLA

slide19
Cost/SLA Mapping Set Capability
  • Mapping set – Account Derivation Rule

Slide – 19 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 19 Cost Accounting As You Want It ─ EBS R12 and SLA

slide20
Cost/SLA Mapping Set Capability
  • SLA Journal Line / Derivation Rule

Slide – 20 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 20 Cost Accounting As You Want It ─ EBS R12 and SLA

slide21
Cost/SLA Mapping Set Capability
  • Associate Journal Lines Definition to the Event Class

Don’t forget to validate your new AADs

Slide – 21 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 21 Cost Accounting As You Want It ─ EBS R12 and SLA

slide22
Cost/SLA Mapping Set Capability
  • Note the same ADR is usable for Standard Cost Update

Slide – 22 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 22 Cost Accounting As You Want It ─ EBS R12 and SLA

slide23
Cost/SLA Mapping Set Capability
  • Note the same ADR is usable for Standard Cost Update

Slide – 23 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 23 Cost Accounting As You Want It ─ EBS R12 and SLA

slide24
Cost/SLA Mapping Set Capability
  • Associate SLA Definition to the SLA Method/Ledger

Slide – 24 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 24 Cost Accounting As You Want It ─ EBS R12 and SLA

slide25
Inventory

Inventory

PPV

Receiving

Matl Overhead Absorption

Cost/SLA Mapping Set Capability

  • The material subledger from 11i still exists

Slide – 25 Cost Accounting As You Want It ─ EBS R12 and SLA

slide26
Cost/SLA Mapping Set Capability
  • SLA Entries That Go to Your G/L

Slide – 26 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 26 Cost Accounting As You Want It ─ EBS R12 and SLA

slide27
Cost/SLA Mapping Set Capability
  • For the Standard Cost Updates That Go to Your G/L

Slide – 27 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 27 Cost Accounting As You Want It ─ EBS R12 and SLA

slide28
Category Accounting –

Discrete Cost Accounting migrated to SLA in R12.1

Slide – 28 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 28 Cost Accounting As You Want It ─ EBS R12 and SLA

slide29
Product Line Category Accounting
  • Create a new structure under the key flexfield “Item Category”

Slide – 29 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 29 Cost Accounting As You Want It ─ EBS R12 and SLA

slide30
Product Line Category Accounting
  • Create a new structure under the key flexfield “Item Category”
  • Create category codes

Slide – 30 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 30 Cost Accounting As You Want It ─ EBS R12 and SLA

slide31
Product Line Category Accounting
  • Create a new structure under the key flexfield “Item Category”
  • Create category codes
  • Create category set

Slide – 31 Cost Accounting As You Want It ─ EBS R12 and SLA

slide32
Product Line Category Accounting
  • Create a new structure under the key flexfield “Item Category”
  • Create category codes
  • Create category set
  • Assign “Product Line Accounting” functional area category set

Slide – 32 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 32 Cost Accounting As You Want It ─ EBS R12 and SLA

slide33
Product Line Category Accounting
  • Assign product line category accounts

Slide – 33 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 33 Cost Accounting As You Want It ─ EBS R12 and SLA

slide34
Product Line Category Accounting
  • Find the correct source name to use

Slide – 34 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 34 Cost Accounting As You Want It ─ EBS R12 and SLA

slide35
Product Line Category Accounting
  • Summary Notes
    • Product line accounting can be achieved in many ways without using custom programming or 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.
    • You could also create a custom SLA source for the Item Master Cost of Sales Account (mtl_system_items_b.cost_of_sales)

Slide – 35 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 35 Cost Accounting As You Want It ─ EBS R12 and SLA

slide36
Discrete Inventory Period Close and Upgrade
  • 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 (Create Accounting)
  • Discrete 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.

Slide – 36 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 36 Cost Accounting As You Want It ─ EBS R12 and SLA

slide37
Release 11i to 12 Upgrade Caveats
  • Material and WIP Accounting Distribution Inquiries & Reports
    • These inquiries and reports don’t show the Subledger journals
    • You still see the same information as in Release 11i
    • This can be confusing
  • SLA has new accounting reports (such as Journal Entries Report, Accounting Analysis Report…) which can be modified as desired using BI Publisher.
  • The Standard Costing profile CST: Account Summarization profile no longer exists

Slide – 37 Cost Accounting As You Want It ─ EBS R12 and SLA

slide38
R12: New Journal Sources and Categories

Release 11iInventory - MTL - WIPPurchasing - Receiving

Release 12Cost Management - Inventory - Receiving - WIP

Slide – 38 Cost Accounting As You Want It ─ EBS R12 and SLA

slide39
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
  • Diane Streubel – OAUG Process Cost SIG Lead

Slide – 39 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 39 Cost Accounting As You Want It ─ EBS R12 and SLA

slide40
Additional information available from:
  • R12 Oracle Subledger Accounting – Implementation Guide
  • R12 Oracle Cost Management – User Guide
  • R12 Oracle Process Manufacturing Cost Management - User Guide

Slide – 40 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 40 Cost Accounting As You Want It ─ EBS R12 and SLA

slide41
THANK YOU

Slide – 41 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 41 Cost Accounting As You Want It ─ EBS R12 and SLA

appendix
Appendix
  • Oracle Process Costing: MAC transitioning to SLA
  • Professional Background for Douglas Volz

Slide – 42 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 42 Cost Accounting As You Want It ─ EBS R12 and SLA

Douglas Volz Consulting, Inc.

slide43
Oracle Process Costing:

MAC transitioning to SLA

Slide – 43 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 43 Cost Accounting As You Want It ─ EBS R12 and SLA

Douglas Volz Consulting, Inc.

slide44
OPM MAC transitioning to SLA
  • Converged inventory model
  • Inventory Organizations that are Process will use Process Costing
  • Process users are denied access to Discrete Costing forms
    • Process Enabled organizations can not setup costs in the Discrete Costing application
  • Sub Ledger Architecture (SLA) replaces MAC

Slide – 44 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 44 Cost Accounting As You Want It ─ EBS R12 and SLA

Douglas Volz Consulting, Inc.

slide45
Cost Setup

Calculate Cost

Store Costs

Oracle GL

OPM MAC transitioning to SLA

11i OPM

Order Management

GMI

(OPM Inventory)

Purchasing

GMD, GME

MAC

Slide – 45 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 45 Cost Accounting As You Want It ─ EBS R12 and SLA

Douglas Volz Consulting, Inc.

slide46
Cost Setup

Calculate Cost

Store Costs

Oracle GL

OPM MAC transitioning to SLA

R12 OPM

Order Management

Oracle Inventory

Purchasing

GMD, GME

SLA

Slide – 46 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 46 Cost Accounting As You Want It ─ EBS R12 and SLA

Douglas Volz Consulting, Inc.

slide47
OPM MAC transitioning to SLA
  • Subledger accounting is an intermediate step between subledger products and the Oracle General Ledger
  • Each transaction that requires accounting is represented by a complete and balanced subledger journal entry, stored in a common data model.

Slide – 47 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 47 Cost Accounting As You Want It ─ EBS R12 and SLA

Douglas Volz Consulting, Inc.

slide48
OPM MAC transitioning to SLA

11i OPM

General Ledger

Interface

Subledger

GL Export

Journal Import

Journal Posting

For G/L integration, discrete costing works the same as OPM costing

Slide – 48 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 48 Cost Accounting As You Want It ─ EBS R12 and SLA

Douglas Volz Consulting, Inc.

slide49
OPM

Receivables

Payables

Projects

OPM MAC transitioning to SLA

R12 OPM

Oracle SubledgerAccounting

Oracle General Ledger

For G/L integration, discrete costing works the same as OPM costing

Slide – 49 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 49 Cost Accounting As You Want It ─ EBS R12 and SLA

Douglas Volz Consulting, Inc.

slide50
OPM Costing Engine

generates costs.

OPM Costing Engine

generates costs.

OPM MAC transitioning to SLA

SLA

OPM MAC

Completed material

and/or resource

transactions.

Completed material

and/or resource

transactions.

Cost Pre-processor will create accounting Events

OPM Subledger process processes these transactions to create Journal entries

SLA accounting program processes the events to create the journal entries

Slide – 50 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 50 Cost Accounting As You Want It ─ EBS R12 and SLA

Douglas Volz Consulting, Inc.

slide51
OPM MAC transitioning to SLA

Slide – 51 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 51 Cost Accounting As You Want It ─ EBS R12 and SLA

Douglas Volz Consulting, Inc.

slide52
OPM MAC transitioning to SLA

Slide – 52 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 52 Cost Accounting As You Want It ─ EBS R12 and SLA

Douglas Volz Consulting, Inc.

slide53
OPM MAC transitioning to SLA
  • Most of the steps are automated using migration scripts
  • All the Account Definitions would be migrated as ADRs
  • Manual Steps to be completed are:
    • Assign Account Derivation Rules to Journal Line Definitions
    • Validate Application Accounting Definition
    • Assign User Subledger Accounting Method to Ledger

Slide – 53 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 53 Cost Accounting As You Want It ─ EBS R12 and SLA

Douglas Volz Consulting, Inc.

slide54
OPM MAC transitioning to SLA
  • Historical OPM Subledger distribution data not migrated to SLA
    • Data refers to OPM Inventory
  • Historical data available in query mode

Slide – 54 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 54 Cost Accounting As You Want It ─ EBS R12 and SLA

Douglas Volz Consulting, Inc.

slide55
OPM MAC transitioning to SLA

Slide – 55 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 55 Cost Accounting As You Want It ─ EBS R12 and SLA

Douglas Volz Consulting, Inc.

slide56
OPM MAC transitioning to SLA
  • NO LOSS of functionality by moving to SLA model
  • New menus created under OPM Financials for new SLA forms
  • Fiscal Policy and Event Fiscal Policy screens retained with minor modifications. Most of the fields will be read-only.
  • OPM Event model mapped to SLA event model.

Slide – 56 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 56 Cost Accounting As You Want It ─ EBS R12 and SLA

Douglas Volz Consulting, Inc.

douglas volz
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 over 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 andCost 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, Italy and Germany.

Doug leads the Cost Sub-Committee, for the OAUG Discrete Manufacturing SIG. He also participates on the Oracle Customer Advisory Board for Fusion Costing and for the Fusion SCM Strategy Council.

Core Expertise

Experience

  • Multi-organization, Multi-currency ERP Implementations
  • Project Management and Senior Project Advisor
  • Core manufacturing processes
    • Cost Management
    • Inventory
    • Bills of Material
    • WIP
  • Systems Integration and Data Conversions

Sample of clients served:

  • Celgene (US & Switzerland)
  • Beckman Coulter (US)
  • Onninen AS (Norway)
  • Matsushita (UK, Mexico)
  • NTL (now Virgin Media)
  • Idec Izumi (Japan)
  • Logitech (US, Taiwan, P.R.C.)

Slide – 57 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 57 Cost Accounting As You Want It ─ EBS R12 and SLA

Douglas Volz Consulting, Inc.

end of presentation
End of Presentation

Slide – 58 Cost Accounting As You Want It ─ EBS R12 and SLA

Slide – 58 Cost Accounting As You Want It ─ EBS R12 and SLA

Douglas Volz Consulting, Inc.

ad