EBS-OPM Costing.docx

OPM Financial
Mainly Actual Cost
All material and resourcetransactions in a "process enabled" Inventory Organization arecosted using OPM Costing.
Using the following cost methods:
• Standard Costs
• ActualCosts
• Lot Costs
Valuing all Transaction on (* inventory * Purchasing * Shipping * Production)
- Business Flow for costing

Mainly we will use Actual cost:
- Record and verify transactions.
- Run the Actual Cost process, view, and verify the costs.
- If the costs are correct,then run the Inventory Close
- Cost Update processes in the final mode.
- Run the OPM Accounting Preprocessor
- Create Accounting process to
- createaccountingentries in the OPM Subledger.
- Use theCreate Accounting process again to export the Subledger Journals toOracle General Ledger.
Defining Costs:
OPM Cost Management lets you define costs by:
1-Inventory Organization:
Using OPM Costing, you can maintain different costs for an item at different Inventory Organizations.If several
organizations havethesame cost, the Cost Organization Association can be used to sharethe same cost across these
organizations,by eliminatingtheneed for maintainingduplicatedata.
2- Item
Define costs for individual items.
3- Cost Calendar and Period
Define costs for each period in the cost calendar.
4-Multiple Cost Types:
OPM Costing supports different Cost Types that can be used to monitor and analyzecosts. It has the ability tostorecost
of a single item in multiple cost types at any given point of time, though only one is used for inventory valuation in
OPM Sub-ledger.
The cost methods supported are:
• Standard Cost
• Actual Cost
• Lot Cost

Cost Component:
Item Cost can break down to multiple Levels to trackand AnalyzeCost
Cost Component Classes “‫التكلفه‬ ‫مكونات‬ ‫”فئات‬
Identify individual buckets or component costs that make up the total cost
Each component class can be classified to 5 Diff elements"‫التكلفه‬ ‫مكونات‬‫"انواع‬
Material,
Resource,
Overhead,
Expense allocation,
Standard Cost Adjustment
Analysis Code:
Classes component can be broken into lower Level for analysis which is analysis Codes

Establishing Actual Costing:
Calculate Item costs based on actual inventory and resourcetransaction data
Business transactions that are used to calculate the actual costs:
- Purchasingreceipts including Freight and Special Charges estimated on the PO, returns,and corrections of receipts
- Paid Invoices
- Batch ingredient consumption and resourceusage
- Opening inventory balances
- Cost overheads
- Cost adjustments
- General Ledger Expense allocations for indirect overheads
- All material transactions includinginternal order receipts
‫ال‬ ‫المصرفات‬ ‫و‬ ‫االداريه‬ ‫االقسام‬ ‫زى‬... ‫مباشره‬ ‫الغير‬ ‫التكاليف‬ ‫توزيع‬ ‫طريقه‬
‫نثريه‬
“Allocating General Ledger expense is a method by which you can distributetheindirect expenses of manufacturing(such as
administrativeand general expenses)”
For Knowledge:

Retroactive Pricing
OPM costing affected by RetroactivePricing for Changing PurchasingPrice WhilePurchasingCycle
Monitoring Costs
OPM Cost Management provides several reports and inquiries to monitor and analyzecosts:
• Item Cost report
• Allocation report
• Subledger reports
• Lot Cost History report

Setting Up
1- Item Master :
The items to be recognized and costed in OPM Cost Management must to define as
* Inventory Asset Flag
Enable the Inventory Asset Flag on the Costing tab to track an asset item.
* Recipe Enabled, Process Costing Enabled, Process Execution Enabled attributes on the Process Manufacturing tab
to use organization items in formulas and recipes as well as in OPM Cost Management.
* Addto yourAccount Res. OPMFinancial Res.
AndFrom OrganizationAccessGive Orgaccessto OPMFinanical toOrg MLP

1- Cost Types
OPM Costing support 3 types of Cost typeto Calculate item cost
A- Standard Cost
B- Actual cost
C- Lot cost
Actual Costing:
The product costs are not based on theformula, routing and recipe details but rather based on actual consumptions of
materials and resourceusage recorded in the production batches
Actual Cost Methods Supported:
• Period moving average cost (PMAC)  Previous Period and Current
• Period weighted average cost (PWAC)  Current Period
• Perpetual weighted average (PPAC) Total Price /Total Qty. “Regardless Periods”
+
• Last transaction (LSTT)
• Last invoice (LSTI)
Last Transaction and Last Invoice methods are supported only for Raw Materials.

• LSTT - This method uses the last transaction within thecostingperiod, regardless of whether thetransaction is a receipt
or an Accounts Payableinvoice.
• LSTI - This method uses the last Accounts PayableInvoice transaction within thecostingperiod, even if thereare latest
receipts with estimated prices.In the absenceof AP invoice transactions thelatest receipt will beconsider ed for the actual
cost.

LOT Cost
2- Cost Calendar
A costcalendar canbe sharedacross multiple costtypes andlegal entities
The costing calendar is completely separate fromthe fiscal calendar and the periods there in.
OPM financial  Setup costCalendar

Create Calendar Periods
Assignments:
To Assign Created Cost Calendar to Legal entity and Cost type
Open Periods of calendar from Period status

3- Defining Component Groups:
Components groups can be used for custom reportingand analysis
As Material, Labor,overhead
4- Defining Cost Component Classes
5- Defining Cost Analysis Codes:
An individual component cost identified by a particular cost component class can be further broken down using cost
analysis codes for more granular trackingof costs.
(to analyzeCosting 5 Classes*Material,Resource,overheads,Expense allocation,standard adjust* )

Lower Level is Direct or indirect
6- Defining Costing Organization Associations
OPM maintains separateitem costs for each inventory organization
Sometimes I need to sharecost at Specific org to other org to be the same cost at this case you have to associateother Orgs
to Costing Org

7- Defining Fiscal Policies
The Fiscal Policy options define the Legal Entity-wideparameters thatdeterminethe cost type that will be used
for inventory valuation,thedefault material and overhead cost components and analysis codes for actual cost
processing, additional cost types used for costingsimulations
SelectLegal EntityandLedger& currency thanadd ValuationMethod
For Each L.E
Can select one Valuation Method
Then at Event Fiscal Policy
Select Book inv.at Receipt Price ‫االستالم‬ ‫اثناء‬ ‫الشراء‬ ‫امر‬ ‫سعر‬ ‫هو‬ ‫التقديري‬ ‫السعر‬ ‫هيعتبر‬
Assign Valuation Method
Relate cost type to Set of Books for Legal entity

Defining Percentage Overhead Codes:
‫هتتحمل‬ ‫هل‬ ‫التحمل‬ ‫نسبه‬ ‫بيحدد‬ ‫كود‬
‫المستهلكه‬ ‫المكونات‬ ‫وال‬ ‫النهائي‬ ‫المنتج‬ ‫على‬
Defining Cost Factors ‫التكلفه‬ ‫عوامل‬

The Same as Purchase Cost factors as Freights, Bank fees,others
Allocation Base  ‫الوحده‬ ‫قيمه‬ ‫هو‬ ‫التوزيع‬ ‫اساس‬
Resource Cost
OPMfinancialResource Cost
You have Firstto Define Resource thenatResource CostAssignHourCostfor Each Resource
It has to Change everyPeriod

Setup and Configuration Steps for Cost Management Command
Center
To complete setup of the Oracle Cost Management Command Center, you must perform thefollowing:
1. Cost Management Profile Options,
2. Loading Cost Management Data, page 3-60
Run the concurrent program Cost ManagementCommand Center Data Load
Using Actual Costing

Transactions Impacting Raw Material Costs:
- Purchasing Receipts and Invoices
- Inventory Transfer
- Transfers between Process and Discrete Organizations
- Actual Cost will consider theinventory transfers between process inventory organizations within thesame Legal Entity at
the source organization cost.
- Transfers that go across Legal Entities, the transfer price is used.
- Transfers that originatefrom a discrete inventory organization toa process inventory organization or vice versa, transfer
price is used regardless of whether thetransfer is within or across Legal Entities
In thecase of process to discreteor discrete toprocess transfers, thedifference between the sending organization's cost
and the transfer priceis captured in a new account called Inter-Org Profit account
“The profile, CST: Transfer Pricing Option, in Oracle Costing controls whether to use transfer priceto cost internal order
transfers across operatingunits and if so, whether to use the transfer priceas incoming cost or not. The profile is used
only for transfers from Discrete to Discrete Inventory Organizations only.”
• No support for lot level costingis provided across such transfers
• No support for elemental/subelemental visibility is provided across the transfer sincea transfer priceis being used
Changes to Shipping Networks Window
The Shipping Networks window,in theOracle Inventory application,includes a tab Transfer Price. This tab includes two
fields, Price List and Inter-orgProfit Account. The price list is used to derive the transfer pricewith thestatic pricing
option by both the OPM cost processor and Oracle Costing PAC cost processor.The perpetual costing processors of
Oracle Costing will ignore thetransfer price. The Inter-Organization Transfer form is used to createa transfer between
any two organizations.Set up a transfer pricebetween twoorganizations if the transfer happens between a process and
discreteorganizations.If the transfer pricecannot be derived at the transaction creation time,then thetransfer fails.
Production Batch Costs:
Actual ingredientusage from Production is captured for closed batches

Reopen a Production Batch
The Actual Cost process lets you reopen a batch tocorrect entries.If the batch details wereused in calculatingthe actual
cost of a product,then a warningmessagedisplays.
Run the Actual Cost process again to ensure that thecosts are accurateand reflect the changes. If a batch is already posted
or has contributed toa frozen actual cost, then it cannot be reopened.
Rework Batches
For reworkbatches the product issued for reworkuses the previous period cost, regardless of when theoriginal batch
that produced the product is processed.
Inventory Transfer of Products:
‫اساس‬ ‫على‬ ‫المنتج‬ ‫الصنف‬ ‫تكلفه‬ ‫لحساب‬ ‫مختلفه‬ ‫حاالت‬
1- Product completed Within Period
2- A product in a destination inventory organization and transfer is completed across periods
3- A product in a source inventory organization and thetransfer is canceled across periods.
The canceled transfers within a period are ignored.
Setting Up Expense Allocations:
Accrued indirect costs (such as material overhead) maintained in accrual accounts can be included in actual cost
calculations.
These accrued costs arecaptured from General Ledger
Define theparameters toallocate accrued costs automatically todesignated cost component classes
Expense Allocation Setup Chronology
1. Define Allocation Codes
2. Define Expense Allocation Accounts
3. Define Allocation Definitions

1. Defining Allocation Codes:
Enter Legal Entity  add allocation code
2. Defining Allocation Basis”‫التوزيع‬ ‫أساس‬”
‫التوزيع‬ ‫كود‬ ‫من‬ ‫صنف‬ ‫كل‬ ‫تحمل‬ ‫نسبه‬

Material Cost component Class
If you want to tracktheentire batch from the individual raw material tointermediary and end product, then setup a
unique component class and analysis code for the raw material and ingredient calculation.

Defining Adjustment Reason Codes:
Use the Actual Costs Adjustments toenter the adjustment costs.You must specify a valid reason code
If you have enabled the Landed Cost Management functionality for your organization, then theActual Cost Process considers
the estimated and actual landed cost adjustments in cost calculations
Prerequisites:
- Enter Purchase Receipts and invoices
- Enter Freights and Charges
- Close production Batches
- Apply Expense allocation
- All actual cost adjustments must becompleted
- Previous Period has to be closed
Then to run Actual cost Process:

Select LE , Cal, Period &Cost Type  Then accept
Note: The Actual Cost Process does not calculate costs for expense items. The process calculates costs for
inventory items only. If you want the process to include the expense of an item in cost calculations, then you
must include the item as an inventory item.
Show Cost:
Actual Cost
You can Show Actual Cost Transactions per item from
1- Actual Cost  View transactions
2- From Item cost  find item then from Action  Actual transactions View

Using Actual Cost Method for a Product Item, the costs from Ingredients are displayed at Lower Level. Actual Item cost
based on PO Receipts, Resource Cost on Product,Expense Allocations, Overheads, actual Cost Adjustments aredisplayed
at This Level cost
Viewing Item Cost List
To show List of item Cost
From Action  Item Cost List from

Using Actual Cost Adjustments:
This option lets you adjust the final calculated actual cost of a raw material or product based on quantity and unit cost.
Value adjustment is done on the sum of prior period end inventory onhand balanceand current period transactions.
Find Item

Let’s you choose the type of cost adjustment in Adjustment Type.
The optionsare:
• Average Cost Adjustment
The Average Cost Adjustment type lets youenter a quantity and a cost.
The Actual Cost process considers these transactions similar toa purchaseorder receipt
• Value Adjustment
Let’s you enter an adjustment without a quantity with a valueto apply to theentire quantity
• Unit Cost Adjustment
LCM and OPM integration.
In theReceiving Options window,select an account from the list of values in
The fields for the following LCM accounts:
• Landed Cost Absorption (This account is applicable to OPM Cost Management.)
• Landed Cost Invoice Price Variance
• Landed Cost Exchange Rate Variance
• Landed Cost Tax variance
• Landed Cost Default Charge account
• Landed Cost Variance
Scenarios for Actual Cost
1-Item estimate is same as PO Price, but different than Invoice price
At PO creation

• Item PO Price: $9 (invoice matching:receipt)
• Tax set up; exclusive tax:10%; recoverablerate:50%
At receipt
• Receipt qty. = 10 each
* Item cost (estimated): $9/ each) cost at receipt
* Freight (estimate): $1/ each) [As per Charges setup]
Landed Cost calculation
• Item cost: $9/ each [At PO Price]
• Tax (non-recoverable): $0.45/ each [PO Price $9, Tax Rate10%, Non-RecoverableRate 50%]
• Freight: $1/ each
• Estimated landed cost: $10.45/each [PO Price + Non-RecoverableTax + Freight]
Invoicing
• Item Invoice comes at $110 (Item $100 + Tax $10, $5 recoverableand $5 non-recoverable)
• Freight Invoice $20
• Actual Landed Cost = $125 (Item $105 + Freight $20), Unit LC = 12.5 ($125/10 Each).
Incase needed
The GMF: Landed Cost Adjustments Transfer Method to Inventory in Actual Costing profile option is set to Apply LC
Adjustments based on the Period Opening Balance option
Journal at Receipt
Journal at Delivery

*Total of account Zero*
‫ال‬ ‫حسابات‬ ‫على‬ ‫اتحمل‬
Landed Cost absorption
‫التقديريه‬ ‫االرضيه‬ ‫تكلفه‬ ‫سعر‬ ‫االستالم‬ ‫اثناء‬ ‫التقديرى‬ ‫السعر‬ ‫بين‬ ‫ما‬ ‫الفرق‬
–
‫الشراء‬ ‫امر‬ ‫ف‬ ‫الصنف‬ ‫سعر‬

Landed costing with returns "
‫الخاصه‬ ‫المرتجعات‬
‫بالموردين‬
"
Let us now consider procure to pay cycle with returns.

Item Actual Cost =12.5
When Return will not return Freight invoice so will return only item Cost without Freights
= 12.5-2(Freight/Each) =10.5
Actual Cost Returned is 10.5$
No. of Returned Item = 5
Returned Value = 5*10.5=52.5$

1- After Receipt PO
From purchasingRes. run
A- Landed cost integration Manager
2- From LCM Res. Run
B- Shipment interface import
“Which Create automatic shipment and CalculateEstimated Cost “PO Price+ advanced purchasing*Freights
and Services *””
3- After invoice entry and Validate
From LCM Res. Run
C- Match interface import
D- Submit Pending shipment
To Calc. Actual LCM
Case OPM financial Enabled from OPM financial Res.
4-Landed cost adjustment import

5-Actual cost Processor
6-Cost Update
7-Opem Create Account Preprocessor
8-Create Accounting
COPY COST:
Allow you Copy item Cost, Overhead,Resource from Org to
another or from Period to another or from Org to All
1- Copying Item Costs:
Source = from org or calendar or Period
Target = TO
At this Example I will copy item Cost from period Nov 21 to Dec21

2-Copying Resource Costs
To Copy Cost of Resources (Labor & Machine) from Period to another
Production Batch cost:
Period Moving Average Cost (PMAC)

OPM calculates the cost of theproduct based on closed batches in this period, and also on prior-period inventory balances
and period costs.
Production Batch unit Costs:
Actual ingredient usage from Production is captured for closed batches.Ingredient cost is calculated by the actual cost
raw material method for your cost method. Actual resourceusage, count, and throughput are captured in theOPM
Process Execution application.Resource rateor nominal cost is entered in costing. Batch unit cost is calculated by
dividing -- the sum of ingredient quantity,multiplied by the ingredient actual cost, plus the sum of resourceuse
multiplied resourcerate – by the batch item quantity,as shown in the following illustration:
Period Product Unit Cost is calculated by dividing -- thesum of the period batch quantity multiplied by batch unit cost,
plus the sum of allocations multiplied by the sum of adjustments -- by thesum of all period batch quantity,as shown in
the following
Reopen a Production Batch
The Actual Cost process lets you reopen a batch tocorrect entries.If the batch details wereused in calculatingthe actual
cost of a product,then a warningmessagedisplays.Run the Actual Cost process again to ensure that thecosts are
accurateand reflect the changes. If a batch is already posted or has contributed to a frozen actual cost, then it cannot be reopened.

Period-End Cost Processing:
Steps to close Cost Period:
1-RunningCost Update:
To createjournal entries and other activities such as book variances.The Cost Update process creates the necessary cost
records for this purpose
The Cost Update process freezes recipes, formulas, routings,and operations.When a period status is frozen, a concurrent
process runs and freezes the associated recipes, formulas, routings,operations,and recipe validity rules.If the concurrent
process fails to run, then only run the GMD Costing Status Update concurrent process to manually freeze the formulas,
recipes, routings, and operations.
When Cost update run successfully it freeze Cost Period
Make Sure One you run final update, only new item cost will be updated
To View update result
Use the sameform “Cancel” and inquiry ref. No

From Action you can:
1- Start , Process status ,incase Wrongrun of failure  abort /Reset
2- Show Error of Cost update
Before Close Period you haveto adding or modify Expense allocations:
Incase Modification needed or add another Expenses

Actual Cost Period-End Processing:
Actual Cost Period-End Processing flow:
1- Ensure all transactions (in Production,Inventory,Sales, and Shipping) are completed and then run the Inventory
close process either in the Preliminary or Final mode.
* You Cannot Close Period before run Cost Update “Final”*
To Close Cost Period  From OPM Financial  Run Request 
“GMF Period Close Process for Process Organizations”
Make sure to run with Final close “NO” for the first Time
You can then select either the options Preliminary Close or Final Close.
• Preliminary Close (option Final Close=No) - Period has been closed to transactions, but you may still
open it and post transactions for the period
• Final Close (option Final Close=Yes)- Transactions will no longer post for the period (balances have
been frozen; you cannot open the period again)

IMPORTANT NOTE : do not use Oracle Inventory Close function for Process Organizations!
Closing the period using "GMF Period Close Process " generates period balances data and will be used
in inventory valuation report, and this is not done when using Oracle Inventory Close function
2- Create necessary actual cost adjustments,expenseallocations,and cost overhead data and run the Actual Cost
process
3- Run preliminary cost updateand OPM Accounting preprocessor and review the results.
4- If the costs are correct and thereare no reconciliation issues, then run theinventory close and cost update process
in the final mode. Also, run the OPM Accounting preprocessor and Create Accounting process to create
accountingentries in OPM Subledger. Finally, run the Create Accounting process again to export the Subledger
Journals to Oracle General Ledger.

Note:
These Exchange Rate Variances (ERV) were not included in the item actual cost calculations.

Cost Management Reports:
1-Item Cost Detail Report
2-Actual Cost Adjustments
3-Running the Detailed Subledger Report

Accounting Setup:
Oracle Subledger Accounting (SLA), lets you customizethe way accountingis performed for a specific event
Application shared for all Modules, if I need to use it with OPM so, you haveto open From OPM Responsibility
OPM Financial  SetupSubledger Accounting SetupAccounting Method Builder Method and Definition
Subledger Accounting Method
(1) Subledger Accounting Method -level (1)
By Default will be owned by Oracle Which Not Editable So, you have to Copy it to be owned by User

Subledger Accounting Method which Consist of (Application + Application Accounting Def.)
Example:
Application Application Accounting Def.
Process Manufacturing Financials Process Manufacturing Financials (Owned by Oracle)
Copy it

Application Account Def. will only be availableone click on OPM Application as below
(2) Application Accounting Def. Level (2)
Consist of 2 Parts (Event + Journal Line Def.)
Copy seeded On to User to be Applicablefor modification

COPY
After Copy
You have to Validate Compilation Status First
---------------------------------------------------------------
Preferred after Complete all setup
Press on validate

3-Journal Line Def. Level (3)
Consist of (Journal Line type + Account Derivation Rule)
‫الحساب‬ ‫بيها‬ ‫هكون‬ ‫اللى‬ ‫والطريقه‬ ‫حساب‬ ‫فرده‬ ‫كل‬
For Example Journal Line Def. for Event class PO Receipt
Open Journal Line Def.

FindNeededLine Def.(Line+AccountDerivationRule)
Copy Definition to be created by User and Editable

After Create New Copy of Definition

4-Account Derivation Rule Level (4)
SelectLine Type thenOpenDerivationRule

CopySeededAccountDerivationRule
For add or Modify condition Press on Conditions

For Creating Mapping Set
From Journal Line Def.
Change Seeded Account Derivation Rule to User one
Then Save

A- Oracle Inventory Distributions:
 Misc. Transactions

OpenAccountDerivationRule tosetConditionorMappingSet
(1) Misc. Issue & Receipt
Misc. Receipt Misc.Issue
INV  inventoryValuationaccount DR. INV  inventoryValuationaccount CR.
IVA InventoryAdjustmentExpense CR. IVA InventoryAdjustmentExpense DR.

B-OPM Costing Distribution:
1- Inventory Revaluation (Cost Revaluation)
‫المخزون‬ ‫تقييم‬ ‫اعاده‬
2- Average CostAdjustment

3- Value Adjustment Type
4- Unit Costadjustment
C-Production Distribution
There are several stages in a production cycle; Batch Release, Step Completion, Batch Completion, and Batch Close.
At each stage, different types of transactions aregenerated.
Adjustment must performed before the batch close.
Close represents thefinal close of a production batch indicatingthat all transactions havebeen completed. This prevents
any further transactions againstthe closed batch and the status is changed to Close.
Batch Release with Routing using Actual Costing

Batch Completion with Routing
Production step certification with Routing using actual costing:
Batch Close with Routing:

There are threereasons why amounts areposted to the close variance:
• You might get a non-zeroclose varianceif the batch was released in one cost period and the debit to WIP is valued at
one cost, but the batch was completed in a later cost period when the credit to WIP for the same quantities is valued at a
different cost. This results in a left over balanceWIP due to the cost change and must be cleared out.
• If you book batches using average cost with PWAC, then batches will haveeither a positiveor a negative difference.
During the period, they balanceeach other out.
• If you select an average actual costing with PMAC, then the costs include period ending balancewhich results in a
variance
-************************************************************************************************************************************
Oracle Order Management Distribution for Process Organization
Oracle Purchasing Distribution for Process Organization

ActionPlan
Res.(PurchasingSuperuser,InventorysuperUser,OPMfinancial,LCM)
1- Make Sure to add cost CategoryCode Foritem
2- Purchase Packagingitem
3- Receiptitemand(fromPurchase RunLandedCostintegrationManager)
4- Calculate LCM(shipmentinterface Import)
5- Match Invoice andCreate Charges
6- LCM (runMatch interface Import) and(SubmitPendingshipment)
7- OPMFinancial(RunLandedCostadjustmentimportProcess)
8- Run actual Cost ProcessorCheckitemCost
9- Run CostUpdate
10- Run OPMAccountingPreprocessor
11- Run CostaccountingDraft
12- Run Detailedsubledgeraccounting
1-Item:06AB01/01
CheckMappingSet forinventoryValuation“tobe setfor InventoryValuation  BasedonitemCostCategoryset”

INV PACK420000
1- Sub-ledger Accounting Method
2-Application Account Def.
“Make Sure to be always Valid”

Current Needed Class:
1- Deliver to or Return from Inventory “PO Receipt”
2- Receiving “Receive to Inspection”
3- Landed Cost Adjustments “Landed Cost Adjustment - Deliver”
4- Landed Cost Adjustments “Landed Cost Adjustment - Receive”
5- Landed Cost Adjustments “Landed Cost Adjustment - Valuation”
3-Journal Line Def.
4- Account Derivation Rule

5-Mapping Set if Needed
After any Modification:
You have to open Application Accounting Def. and validate it

*Purchase Super User Res.*
Create PO21300202
*Receipt*

From Purchasing Res. RunLandedCost integration
*From LCM Shipmentinterface Import*
*Match invoice*

Then calculate Tax
Then add freightsinvoice

OpenLCM Res.
Run (Match interface import)
Run (Submit PendingShipment)
CheckLCM charges
LCMS shipment

PO  10* 100 +14% 1140
Char1 80
Char2  510
Total = 1140+590=1730
OpenGAPOPM Financial Res.
Run (LandedcostAdjustmentimportProcess)

RUN Actual Cost Process
OpenItemcost
OpenActual TransactionView

2 Receiptsoccurat Jan -22 foritem
Cost Calc
Total Cost/Total Qty
(2.8+22.8+11.4+1.4-280+70+500+510-70-500+80)/(100+100)=20.75

Run cost Update
Run OPMsubledgerPreprocessor

Run Create Accounting“ProcessManufacturingfinancial “Draft
Open (OPMfinancial)
Run DetailedSubledgerReport

Viewoutput
Receive to inspection
Landed CostReceipt

PO Receipt
Landed cost Valuation
Check Account per Material Transaction:

Scenario1-1 Inventory Transactions:
Phase 1-1 InventoryTransactions
1-Item:06AB01/01
(A) Sub-inventoryTransfer
Performsub-inventoryTransferActionfromARCtoAPM

SelectEventClass”SubinventoryTransfer”
For Misc. Receipt,issue

Inv.Adjust”Expense”
Inv.Valuation

Replace SeededJournalLine Def.byuserone
ThenValidate
Inventory Organization Transfers :”Inter-org Transfer”
Inventory transfer functionality lets you transfer material from one organization toanother (within thesame legal entity
or between processes to discreteorganizations).
Inventory transfer creates twotransactions onefor each organization involved. At the time of shipment,Entries for Source
org At the timeof receiving  Entries for Destination Org
1- Process to Process Org (Within theSame OU)
For transfers that go across operatingunits,a Transfer Price is required and the applicabletransfer priceis used as the
cost of thetransfer in thereceiving organization.

‫ال‬ ‫نفس‬ ‫ليهم‬ ‫االتنين‬ ‫لو‬
OU
‫ال‬ ‫هيحتاج‬ ‫مش‬ ‫فبالتالي‬
Transaction Pricing
Class Type
Direct Interorg Shipment Direct Interorg Shipment,no Transfer Pricing at Source
Direct Interorg Receipt Direct Interorg Receipt, no Transfer Pricing  at Des
‫لو‬ ‫اما‬
OU
‫هيحتاجوا‬ ‫فبالتالى‬ ‫مختلفه‬
transaction PriceDefined
Class Type
Direct Interorg Shipment Direct Interorg Shipment, Transfer Pricing  at Source
Direct Interorg Receipt Direct Interorg Receipt, Transfer Pricing  at Des
.
1- No transfer Price

Open Account Derivation rule for IOR (DR) & Copy

At Receiving Organization
Direct Transfers Across Operating Units
Distribution created in the Sending Organization based on the shipping transaction The interorgprofit account is used
to capturethe difference between the transfer price and the item cost in the sending organization.
At Source “Shipper”

IOPR  Profit at Shipper Org (Price at Shipper org – item Cost)
Journal Line def.
Copy Def.
ForReceipt

Scenario (2) Batch Transactions
There are several stages in a production cycle:
Batch Release
Step Completion
Batch Completion
Batch Close.
Adjustments can still be made to ingredients, byproducts,coproducts,and product quantities.The adjustments made
after Step and Completion, but before the batch close
1- Batch Release With RoutingusingActual Costing
2- Batch CompletionwithRouting
If there isallocation

3- Step completion
4- Batch Closewith Routing
When a production batch is closed, variances are not calculated for Actual Costing companies. Any remaining
WIP amount is cleared and posted to the CLS account: Closing Variance(CLS)
There are three reasons why amounts are posted to the close variance:
1- If the batch was released in one cost period and the debit to WIP is valued at one cost,but the batch was
completed in a later cost period when thecredit to WIP for the same quantities is valued at a different cost. This
results in a left over balanceWIP due to the cost change and must be cleared out.
2- If you book batches using averagecost with PWAC, then batches will haveeither a positive or a negative
difference. During the period, they balanceeach other out.
3- If you select an average actual costingwith PMAC, then the costs include period ending balancewhich results in
a variance.

Setup Subledger accounting
1- Batch Release
Journal Line Def.
2- Copy def.

Open Account Derivation Rule
And Copy ADR

Replace it with Seeded one at journal Line Def.
Replace seeded Journal Line Def. with User One

2- Step Completion:
WIP  DR
RCA CR

EBS-OPM Costing.docx

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EBS-OPM Costing.docx