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Costing - Average Costing Method [EDUM0761] 15-Oct-2004...................................................................1 Costing - Average Costing Method.............................................................................................................................1 Start the Cost Manager................................................................................................................................................2 Define an Item.............................................................................................................................................................4 Perform Miscellaneous Receipts.................................................................................................................................5 Perform an Average Cost Update................................................................................................................................8 View Item Cost History.............................................................................................................................................10 Flowchart...................................................................................................................................................................11
Objective
The purpose of this document is to demonstrate Oracle Average Costing by creating an item and performing a receipt for the item.
Assumptions
None
Related Documents
http://globalxchange.oraclecorp.com/demodocs >Reference Materials Folder > Fundamentals
2.
Start the Cost Manager. (N) Inventory > Setup > Transactions > Interface Managers The Organizations list of values form is displayed. Select
Field Organization Value M3 Dallas Manufacturing
(B) OK Click on Cost Manager (M) Tools > Launch Manager >(B) Schedule The Schedule form is displayed.
Re-run every
1 Minutes(s). Setting this to run frequently during your demo will eliminate checking to see if the cost manager has run during the demo. From the Completion of the prior run
Begin Demo
4.
Define an Item (N) Inventory > Items > Master Items The Organizations list of values form is displayed. Select an Organization
Field Organization Value M3 Dallas Manufacturing
Item Description
Template
(B) Done > (I) Save > (T) Folder (B) Assign To Org
6.
(I) Save
Review Cost for the Item. (N) Cost > Item Costs > Item Costs The Find Item/Cost Type Form is displayed. Enter the following information:
Field Item Value Item you created above.
Review the Item Cost Summary form. Note the cost is what you entered in the Miscellaneous Receipts form ($10.00).
(B) Open The Item Cost Details form is displayed. Note the following: Quantity on Hand is what you entered in the Miscellaneous Receipts form (10). Extended Value is Quantity times Cost (10*10=100).
7.
Perform a second Miscellaneous Receipt for the new item. This will show the average cost changes when subsequent transactions are entered. (N) Inventory > Transactions > Miscellaneous Transactions Enter the following information:
Field Date Type Value Defaults to todays date. Miscellaneous receipt
8.
(I) Save
Review Cost for the Item. (N) Cost > Item Costs > Item Costs
Copyright Oracle Corporation, 2003. All rights reserved.
The Find Item/Cost Type Form is displayed. Enter the following information:
Field Item Value Item you created above.
Review the Item Cost Summary form. Note the cost is now half way between the two entries you made ($7.50).
(B) Open The Item Cost Details form is displayed. Note the following: Quantity on Hand is now 20. Extended Value is Quantity times Cost (20*7.50=150.00).
Note the cost group is displayed. By using cost groups companies are able to keep very close to actual costs for specific items as they will be able to have an average cost for the cost group as opposed to an average cost for the organization. You can change the cost by an absolute value or by a percentage. After you enter the item you will see the current average cost and the current total value. (T) Accounts Note these default based on the header information. (T) Value Change This shows the total change in inventory value.
(B) Cost Elements You enter a new cost click on cost elements and see the details.
(I) Save
10. Review Cost for the Item. (N) Cost > Item Costs > Item Costs The Find Item/Cost Type Form is displayed. Enter the following information:
Field Item Value Item you created above.
Review the Item Cost Summary form. Note the cost is now the amount you entered in the cost update form ($7.00).
(B) Open The Item Cost Details form is displayed. Note the following: Quantity on Hand is still 20. Extended Value is Quantity times Cost (20*7.00=140).
(B) Find > Cost History > Find The Item Cost History form is displayed. The three transactions you entered and their costs are displayed.
End of activity.
Demo Support
Please see http://adsweb.oracleads.com > (M) Support > Procedures, for current information regarding demonstration support.
Flowchart
Start Start Cost Mgr
Log into portal. (1) Start Cost Mgr. (2)
Define an Item
Log into portal. (3) Define an Item (4)
End