RapidSTART

Data Sheet
ORACLE MANUFACTURING COST MANAGEMENT 11i
Oracle Cost Management is a enterprise software solution that supports a variety of complex cost valuation, simulation, and margin analysis techniques that enable you to control, manage, and analyze the profitability of your business. Oracle Cost Management is part of Oracle Applications, an integrated suite of e-business solutions for the enterprise, which are designed to transform your business to an e-business.

Unsurpassed Flexibility
Oracle Cost Management lets you easily define flexible cost structures to support your complex cost information needs. You can maintain perpetual inventory costs using either standard, average, FIFO or LIFO costing. You can revalue your inventory using periodic average or incremental LIFO costing.

Streamlined Business Flows

Oracle Cost Management business flows increase your productivity and improve your ability to quickly research and analyze cost information. Reports and inquiries allow you to find critical information in a flexible way, see the results in your preferred format, and selectively take appropriate action. With its powerful and flexible selection criteria, Oracle Cost Management lets you proactively identify and monitor potential variances and trends based upon criteria that you choose.

Advanced Product Costing

Control your cost proactively rather than reactively by setting target cost before you produce the first unit. You can develop comprehensive standard or simulation product costs with Oracle Cost Managements full or single-level cost rollup features. Single-level rollup allows you to analyze new or temporary cost changes without affecting other assemblies. You can rollup costs across your enterprise using your sourcing rules. Item cost can include material, material overhead, resource, outside processing, and overhead elements. In Average Costing, you can automatically include invoice price variance. You can apply overhead on a fixed and variable basis, using activity, resource, or unit cost drivers. You can manufacture assemblies using Average, FIFO or LIFO costing as well as the traditional standard costing. Assemblies are automatically costed using a choice of these methods. In Average Costing, you can view the transaction that changed item cost and view the results graphically.

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Quickly identify costing impacts by viewing a graphical Item Cost History

Work Orderless Manufacturing

Oracle Cost Management work orderless production, allowing you to greatly reduce work in process inventory. In either a standard, average, FIFO or LIFO costing organization, you can produce and cost assemblies without creating work orders. You can record completions as a single transaction that backflushes all material and resource requirements, calculates the cost of the assemblies, relieves all cost from the flow schedule, and creates journal entries for all these events.

Streamlined Training Time

Since the look and feel of the shop floor operations does not change between costing methods, production workers from one organization can move to an organization with a different costing method without additional training.

Powerful Cost Simulations

Increase your product margin by analyzing the impact of cost reductions and supply chain variations before you implement them. Oracle Cost Management supports powerful "what-if" analysis by allowing you to create as many cost types as you need. Unlimited cost types, along with cost rollup simulations, allow you to forecast unit cost and gross margin impacts of engineering changes, new product introductions, and make-versus-buy decisions. The product gross margin report can use these "what-if" cost types to show the impact of the changes to your bottom line.

Extensive Inquiries and Reports and Full Accounting Life Cycle

Simplify your general ledger without losing access to the details. Oracle Cost Management makes it easy to view and report inventory costs any way you choose -- by item, date, sub-element, activity, cost type, operation, department, or user-defined activity attributes such as "value-added." With flexible period-based accounting, you can transfer summary or detailed accounting activity to your general ledger at any time. Multiple-row windows allow you to compare and review general ledger balances and summary information as well as easily drill down to detailed transactions and accounting distributions. You can view the intuitive T-accounts for each transaction from either General Ledger or Manufacturing inquiry screens. You can drill up and down between summary and detail balances and transactions.

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Review WIP Value Summary of material charged to a job

Analyze and control the material costs charged to jobs

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Comprehensive Costing Repository

Analyze all your cost without re-keying data input. Oracle Cost Management provides a unified cost data repository that provides you immediate access to view, report, and analyze your discrete job cost and repetitive schedule transactions. You can efficiently determine costs applied to work in process, variances incurred, and current valuation. Comprehensive variances including material and outside processing purchase price variances, material usage variance, and resource and overhead efficiency variances provide insights into deviations from standard.

Streamlined Item Standard Cost and Account Revisions

Update standard cost with a small fraction of the effort of legacy systems. You can use Mass Edits to easily revise your item costs with shortcuts such as a percentage change in tax rates. You can update unit costs based on an average of open purchase orders, accounts payable invoices, or historical purchase orders within a date range. You can revise account assignments for a selected range of items. You can use Mass Edits to easily update your costs as you create new standards or simulate alternative cost scenarios.

Oracle E-Business SuiteThe Total Solution

Transform the way you conduct business with Oracles internet-enabled e-business suite. Put your demand chain and internal operations online with Oracles comprehensive and fully integrated solution. Combine the wide reach of the internet with Oracles fully globalized product to run your business consistently and accurately worldwide. Reduce costs and complexity by running on corporate internets or the World Wide Web. As a provider of global consulting, education, and support services, Oracle provides the most complete e-business solution available.

The Oracle E-Business Suite: transforming your business into an e-business

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RapidSTART Key Features

Inventory and Manufacturing Costing

Use standard, average, FIFO, and LIFO costing Maintain perpetual inventory costs Automatically create all inventory accounting entries Analyze accounting transactions online Track asset and expense items and locations Use rule-based accounting for revenue and cost of goods sold Automatically revalue inventory after standard or average cost changes Maintain perpetual balances, discrete jobs, and schedules Charge resources at actual or standard cost, including outside processing costs Charge resource costs automatically based on operation completions Allow and control overcompletions
Apply overhead by:

Fixed amount per item Fixed amount per lot Percent of item value Percent of resource value Amount per resource unit Automatically create all work in process accounting entries View work in process account balances by transaction, job, or schedule Automatically revalue work in process after standard cost changes Variance Reporting and Control
Track and report:

Material and outside processing purchase price variance Material usage variance Resource and overhead efficiency variance Search for potential variances based on dollar amount, account, and item category

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Product Costing

Use multiple cost elements with unlimited sub-elements, resources, and activities to define your item cost
structure

Report and view assembly costs by level Assign multiple material overheads to items Assign multiple resources to routing operations Apply overhead costs on a fixed or variable basis Roll up costs for engineering prototypes Roll up costs for a single level or multiple levels in bills of material Copy the current bill of material to an alternate bill when you perform a cost rollup Roll up costs by cost type Roll up costs based on alternate bills and routings Use Mass Edits to easily maintain costs and accounts Update standard costs at any time to revalue inventory and work in process, without interrupting transaction
processing

Perform cost rollups and Mass Edits immediately or on a schedule you define
Financial Integration

Use shared financial periods, accounts, and set of books Flexible period-based accounting allows you to simultaneously transact in more than one open period Make interim and period-close transfers to your general ledger Transfer to general ledger in summary or detail Drill down from general ledger balances to specific cost accounting entries Easily reconcile to your general ledger Export items to other budgeting and cost analysis systems; import item cost information from other systems Export cost rollup history, cost adjustment information, work in process costs, and transaction accounting
distributions to other cost reporting systems

Import actual resource costs from payroll or shop-floor systems

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