Opm Pmac Example

OPM Actual Costing is NOT the StandardKeith McCormick, Solution Beacon, LLC

Solution Beacon/NCOUG Harper College, Palatine,IL 15 Aug, 2003 [email protected] solutionbeacon.com1 2003 Solution Beacon, LLC. All Rights Reserved.

OverviewThis presentation will discuss implementing actual costing in an OPM environment and the challenges involved with reconciling the inventory account to the change in inventory valuation. Attendees will be presented with functional and technical information regarding month end closing procedures and tips and tricks to overcome reconciliation hurdles. Reconciling the net change in inventory valuation to the value in the inventory account at month end is challenging in an OPM actual costing implementation. There are several steps that have to be performed in order for the information to roll up correctly in the calculation of costs. Furthermore, there are several steps to perform in order to accumulate subledger amounts for period end. If any steps are eliminated or performed out of sequence, the subledger values are incorrect. Additionally, depending on the modules that are implemented, conditions may exist in dependent modules (PO, OM, OPM Manufacturing) that prevent costs from being calculated correctly but that allow inventory levels to be adjusted thereby creating a reconciling mess.2 2003 Solution Beacon, LLC. All Rights Reserved.

Assumptionsn n

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Using Period Moving Average Cost (PMAC) Implemented Purchasing for Process Inventory instead of OPM Purchase Management Implemented Oracle Order Management instead of OPM Order Fulfillment

3 2003 Solution Beacon, LLC. All Rights Reserved.

Actual Cost Period End Prerequisitesn n n n n n n n n4 2003 Solution Beacon, LLC. All Rights Reserved.

Complete and close all inventory batches Complete physical inventory, cycle counts and adjustments Enter all PO receipts, corrections and returns to suppliers Enter AP receipts if synchronizing invoices Ship confirm and update shipping for OM orders Enter resource costs Enter cost burdens Run GL expense allocations Enter actual cost adjustments

Actual Cost Period End Process


Actual Cost Period End Processn n n

Preliminary close the inventory calendar period Run Actual Cost Process

OPM Inventory > OPM Inventory Control > Inventory Close OPM Financials > Cost Management > Actual Costs > Actual Cost Process

View the actual cost process error messages Run preliminary GL Cost Update

OPM Financials > Cost Management > Actual Costs > Actual Cost Process > Actions menu > View Error Messages OPM Financials > Mfg. Acctg Controller > GL Cost Update

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View the GL Cost Update error messages Run Subsidiary Ledger Update

OPM Financials > Mfg. Acctg Controller > GL Cost Update > Actions menu > View Error Messages OPM Financials > Mfg. Acctg Controller > Subledger Update > Actions menu > Test Subsidiary Ledger Update OPM Financials > Mfg. Acctg Controller > Subledger Update > Actions menu > View Error Messages

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View the Subsidiary Ledger Update error messages


Actual Cost Period End Process (cont.)This is where the fun startsReconcile the net change in inventory value (Current Period Prior Period) to the inventory account in the Account Distribution reportn

Run Inventory Valuations reports for current period and prior period Run Account Distribution (Account Summary) report for the Test SubledgerOPM Financials > Mfg. Acctg Controller > Reports > Detailed Subledger > Actions Menu > Account Distribution > Report on Test Subledger > Report Type Account Summary OPM Inventory > OPM Inventory Control > Reports > Run > Inventory Valuation Report

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Actual Cost Period End Process (cont.)n n

Final close the inventory calendar period

Run Actual Cost Process if transaction adjustments were entered View the actual cost process error messages Run final GL Cost Update

OPM Inventory > OPM Inventory Control > Inventory Close

OPM Financials > Cost Management > Actual Costs > Actual Cost Process

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OPM Financials > Cost Management > Actual Costs > Actual Cost Process > Actions menu > View Error Messages OPM Financials > Mfg. Acctg Controller > GL Cost Update

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View the GL Cost Update error messages Run Subsidiary Ledger Update

OPM Financials > Mfg. Acctg Controller > GL Cost Update > Actions menu > View Error Messages OPM Financials > Mfg. Acctg Controller > Subledger Update > Actions menu > Subsidiary Ledger Update OPM Financials > Mfg. Acctg Controller > Subledger Update > Actions menu > View Error Messages 2003 Solution Beacon, LLC. All Rights Reserved.

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View the Subsidiary Ledger Update error messages

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Actual Cost Period End Process (cont.)n

Run GL Update OPM Financials > Financial Integration > GL Update n Run Journal Import General Ledger > Journals > Import > Run


Account Mapping Form


Reconciling Inventory ValueThe net change in inventory value should reconcile to the accounts associated with the INV account title on the Account Distribution Summary reportCurrent Period Inventory Value Prior Period Inventory Value = Net Change in Inventory Value this should equal Account Distribution Summary Report (all accounts associated with the INV account title) NOTE: If an account associated with INV is also associated with another account title, then the value associated with the other account titles must be backed out.


Summarize Subledger EntriesSELECT l.co_code, l.fiscal_year, l.period, l.doc_type, gsm.sub_event_code, gsm.sub_event_code, gsm.sub_event_desc, l.acct_ttl_type, gat.acct_ttl_code, gat.acct_ttl_desc, gat.acct_ttl_code, SUBSTR(u.acctg_unit_no,1,10) acct_unit, SUBSTR(m.acct_no,1,50) account, SUBSTR(m.acct_no,1,50) l.currency_base, l.currency_trans, SUM(DECODE(l.debit_credit_sign,1,l.AMOUNT_BASE*l.debit_credit_sign,0)) debit, SUM(DECODE(l.debit_credit_sign,1,l.AMOUNT_BASE*l.debit_credit_sign,0)) SUM(DECODE(l.debit_credit_sign,-1,l.AMOUNT_BASE*l.debit_credit_sign,0)) credit SUM(DECODE(l.debit_credit_sign,FROM gmf.gl_subr_tst l, gmf.gl_accu_mst u, gmf.gl_acct_mst m, gl_sevt_mst gsm, gl_acct_ttl gat WHERE l.co_code = 'TFY' AND l.fiscal_year = '2003' AND l.period = 2 AND l.acct_ttl_type = 1500 -- inventory AND u.acctg_unit_id = l.acctg_unit_id AND m.acct_id = l.acct_id AND u.co_code = l.co_code AND m.co_code = l.co_code AND l.acct_ttl_type = gat.acct_ttl_type AND l.sub_event_type = gsm.sub_event_type GROUP BY l.co_code , l.fiscal_year, l.period, l.doc_type, gsm.sub_event_code, gsm.sub_event_code, gsm.sub_event_desc, l.acct_ttl_type, gat.acct_ttl_code, gsm.sub_event_desc, gat.acct_ttl_desc, u.acctg_unit_no, m.acct_no, l.currency_base, l.currency_base, l.currency_trans 2003 Solution Beacon, LLC. All Rights Reserved.

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Summarize Subledger Entries (cont.)Inventory transactions from the test subledgerDoc Type PROD PROD ADJI CREI TRNI OMSO RECV RECV RECV RTRN XFER SubEvent Code CERT RELE IADJ IADJ INTA OMSP RADJ RCPT VOID RTRN XFER Sub Event Description Batch Certification Batch Release Inventory Adjustments Inventory Adjustments Inventory Movement Intra Company Order Management Shipments Inventory Receipt Adjustment Inventory Receipts Inventory Receipt Voids Inventory Returns Inventory Transfers Code Combination 0070-0000-0000-140100-0000 0070-0000-0000-140100-0000 0070-0000-0000-140100-0000 0070-0000-0000-140100-0000 0070-0000-0000-140100-0000 0070-0000-0000-140100-0000 0070-0000-0000-140100-0000 0070-0000-0000-140100-0000 0070-0000-0000-140100-0000 0070-0000-0000-140100-0000 0070-0000-0000-140100-0000 Debit 9,304,068.39 656,413.54 398,703.45 70,003.11 17,687,933.59 13,790.27 3,597,434.52 9,925.15 9,520,256.44 Credit (653,658.28) (8,265,072.29) (746,870.29) (17,687,933.59) (4,764,526.22) (17,237.43) (196,603.81) (9,925.15) (9,531,620.54) Delta 8,650,410.11 (7,608,658.75) (348,166.84) 70,003.11 (4,764,526.22) (3,447.16) 3,597,434.52 (196,603.81) (11,364.10)

Net Change in Inventory

(614,919.14)


Summarize Transaction DataRetrieve IC_TRAN_PND transactional dataSELECT s.doc_type, SUM(s.total) doc_type_total FROM ( SELECT t.item_id, t.co_code, t.orgn_code, t.whse_code, t.doc_type, SUM(t.trans_qty) total_qty, t.trans_um, c.acctg_cost, c.acctg_cost * sum(t.trans_qty) total FROM ic_tran_pnd t, gl_item_cst c, cm_whse_asc a WHERE t.trans_date >= TO_DATE('01-FEB-2003 00:00:00','dd-mon-yyyy TO_DATE('01- FEB00:00:00','dd- monhh24:mi:ss') AND t.trans_date

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Opm Pmac Example