functional transfer of information release 11i.2 cost...
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Business Need for FIFO/LIFO Costing
● Some companies think that either FIFO or LIFO provides more accurate costing than Average Costing.
● Some industries traditionally use FIFO costing.
Major features of FIFO/LIFO Costing
● Two new costing methods– Inventory Organizations can be FIFO,
LIFO, Average, or Standard Costing.– Organizations with different costing
methods can transfer inventory to each other.
– You can use Periodic Costing in addition to either perpetual costing method
Major features of FIFO/LIFO Costing
● All the functionality of Average Costing– All manufacturing transactions supported
● Same look and feel in transaction forms● Unlimited cost types for simulations as in
Standard Costing
Major features of FIFO/LIFO Costing (cont.)
– Mixed mode manufacturing including Project Manufacturing and Flow● Projects inherit the costing method of the
Inventory Organization● Layer Costs are held for each Project Cost
Group● Flow manufacturing looks and feels the
same regardless of the costing method.
Major features of FIFO/LIFO Costing (cont.)
– Layer Cost Updates● You update costs separately by layer.● You can update cost elements by level.
Major features of FIFO/LIFO Costing
● All the reports and inquiries – Inventory reports have the same look
and feel.– You can view the transactions affecting
each layer.
Setup for FIFO/LIFO Costing
● Select LIFO or FIFO as the costing method for the new organization.
● Setup is nearly identical to an Average Costing Organization.
Supply Chain Cost RollupWhat is it?
● A new concurrent program● On top of perpetual costing● Launched similarly to Assembly Rollup● With results held in a Cost Type
Supply Chain Cost RollupMajor Features
● Uses existing costs to minimize data input.
● Allows infinite Cost Types.● Allows infinite sourcing rules.● Provides detail and summary reports.● Facilitates updating frozen costs.
Supply Chain Cost RollupWhat value does it provide?
● Provides simluation for the enterprise● Combines cost for buying and making
items● Can be use to create a global standard
cost
Supply Chain Cost RollupWhat differentiates it from Assembly Rollup?
● Combines MRP sourcing rules with BOM structures
● Cost rollup across organizations● Different BOM structures by
organization● Flexible cost setup● Automatic currency conversion
Supply Chain Cost RollupHow does it work?
● Setup user-defined costs and buy costs– Define items, BOM, routings– Define rollup and buy cost types– Setup costs in rollup and buy cost types
● Setup MRP sourcing rules– Define sourcing rules– Assign sourcing rules to Assignment Set
● Run Supply Chain Cost Rollup
Coming Soon
● Define Item Buy Costs– By Vendor– By Vendor Site– By Quantity Brackets
● Define shipping and markup costs for Shipping Networks
● And much more...
Business Need for Operations Yield Costing
Semiconductor Industry ● Yield cost is major part of total costs.● Number of operations is high.● Cost per operation is often high.● Jobs need to split and merge.● Scrapped items can be reused
Major features of Operations Yield Costing
● Yield Cost is calculated for each operation.
● Variance from expected yield is calculated at each operation.
● Routings can be very flexible.● Scrap Cost is accurately tracked.
Major features of Operations Yield Costing (cont.)
● Reused scrapped items are tracked through a Bonus account.
● Lot Based jobs and discrete jobs can be in the same organization.
Setup for Operations Yield Costing
● Set up have much of the look and feel of discrete jobs.
● Separate WIP accounting classes allow the special costing for Lot Based Jobs.