OPMCostingEnhancementsFunctionalImpact_12_1_13 (1).pdf

Functional Impact Document for OPM Costing Enhancements

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FUNCTIONAL IMPACT DOCUMENT

OPM COSTING ENHANCEMENTS

Application Release: 12.1.3+

Author: Rathnavani Anagani, Sista Siva Rama Krishna

Contributors: Venkat Chukkapalli, Rajesh Patangya

Creation Date: 31-Mar-2013

Last Updated Date: 10-Sep-2013

Version: 1.0

Status: Reviewed

Published by: Rajesh Alex


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Table of Contents

1 Patch Details __________________________________________________________________________________ 3

1.1 Consolidated Patch Details ___________________________________________________________________ 3

1.2 List of Patches/Fixes Included ________________________________________________________________ 3

2 Scope of the Enhancements ______________________________________________________________________ 4

3 Changes _____________________________________________________________________________________ 5

3.1 New Features _____________________________________________________________________________ 5

3.2 Improvement / Enhancements _______________________________________________________________ 7

3.3 Functional Impact _________________________________________________________________________ 8

3.3.1 OPM Accounting Pre-Processor Wrapper Parallel Processing _________________________________________________ 8

3.3.2 Accounting Entries at Summarized Vs Detailed Level ______________________________________________________ 9

3.3.3 Item Cost for Ingredient in Target Org using Sourcing Rules _______________________________________________ 11

3.3.4 Actual Item Cost at This Level and Lower Level _________________________________________________________ 13

3.3.5 Provide Lot Cost Adjustments, GL Expense Allocations and Actual Cost Adjustments as additional separate sources in

Wrapper ______________________________________________________________________________________________ 14

3.4 Performance Improvements ________________________________________________________________ 17

3.5 Testing Recommendations __________________________________________________________________ 17


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1 Patch Details

1.1 Consolidated Patch Details

Patch Number Patch Description

15954309:R12.GMF.B OPM PRE-PROCESSOR PARALLELISM

16327188:R12.GMF.B ENABLE PARALLEL PROCESSING FOR PRE-PROCESSOR WRAPPER AND POST JLS AT ITEM COST

16103415:R12.GMF.B CREATE INGREDIENT COSTS IN TARGET ORGANIZATIONS BASED ON ITEMS SOURCING RULES

16103437:R12.GMF.B ALLOW NEGATIVE VALUES IN PERCENTAGE OVERHEADS SCREEN & Display Descriptive Flexfield in Cost

Components

16103451:R12.GMF.B ACTUAL COST - PROVIDE ACTUAL COST BY COST LEVEL IN ITEM COST SCREEN

14012736:R12.GMF.B OPM ACCOUNTING PREPROCESSOR WRAPPER- COST REVALUATION

1.2 List of Patches/Fixes Included

Not Applicable


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2 Scope of the Enhancements

Process Manufacturing Financials Product has been enhanced in costing and accounting areas with major thrust from Customers either

to improve or provide new functionality. These new features would enhance all customers on 12.1.3 and above.

The scope of this document is to provide a brief description on the enhanced and impacted features.


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3 Changes

3.1 New Features

Current Feature Current Behavior Enhanced Feature

Enhanced Behavior

Review Comments

No provision to initiate OPM Accounting Parallel Processors

No automatic parallel processing could be initiated using OPM Accounting Pre-Processor

Wrapper.

Voluminous data has to be processed by a Single OPM Accounting Pre-Processor which may impact timely period closure.

Parallel Processing is supported for a Source and date range in OPM

Accounting Pre-

Processor Wrapper

OPM Accounting Pre-Processor wrapper submitted for a source

and date range has

Parameter for number of parallel child OPM Accounting Pre-Processors that can be launched

OPM Accounting Pre-Processor wrapper is the Parent which launches the specified number of child OPM

Accounting Pre-Processors.

Parallel processing is currently not supported for Costing Source.

Accounting Entries were generated only at Component Item Cost Level

Accounting Entries were always generated at detailed level of component class and analysis code.

Provides an option to generation Accounting Entries either at Item Cost or Component Item Cost Level

Option provided in OPM Accounting Pre-Processor both Wrapper and Form to generate Accounting Entries at Item Cost or

Component Item Cost Level

Applicable for all Sources in OPM Accounting Pre-Processor both Wrapper and Form

Sourcing Rules do not

create Ingredient Item Cost in Target Organization

Ingredient Item transferred to Target Organization is entirely

accounted for PPV, Provided there is no specific cost available for the same Ingredient in Target Organization.

New Profile “GMF: Compute Ingredient

Cost in target organization based on sourcing rules” determines if ingredient cost has to be created in target Organization

If Profile value is set to Yes , Ingredient Item

cost is created in Target Organization , provided there is no pre-existing cost , and the cost origin is stamped as “Sourcing Rule”

Profile Value should be set at Site level only

For Actual Cost Method Item Cost Display is only

at “ This Level ”

No two-level display for Product Item Cost similar to Standard

Costing

Two level display for actual cost method This

–level and Lower-Level

Using Actual Cost Method for a Product

Item, the costs from Ingredients is displayed

at “Lower Level” and Resource cost, overhead is displayed at “This Level” for a Product Item.

Behavior similar to Standard Costing


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Current Feature Current Behavior Enhanced

Feature

Enhanced

Behavior

Review Comments

Percentage Burdens allow

only positive value.

Only Positive Percentage

Burdens are allowed. No limit on Positive value.

Allows to enter both

Positive and Negative Percentage Burdens

For Negative Percentage

Burdens the limit is -100

No Descriptive Flex Field

for Component Class Setup Form

Descriptive Flex Field

available for Component Class Setup Form

Revaluation Transactions-

Lot Cost Adjustments, GL Expense Allocations and Actual Cost Adjustments not supported individually through OPM Pre-

Processor wrapper

Revaluation

Transactions-Lot Cost

Adjustments, GL Expense Allocations and Actual Cost Adjustments now supported individually

through OPM Pre-Processor wrapper

Enable and display

source: Lot Cost Adjustments only if fiscal policy cost type is Lot Cost Process Status screen: Display value of the new flag Lot Cost Adjustments

The Option to process Actual Cost

Adjustments and GL Expense Allocations is now extended to OPM Pre-Processor Wrapper also

Lot Cost Adjustments were processed by default under Cost

Revaluation in OPM Pre-Processor Form

Lot Cost Adjustments are processed individually in OPM Pre-

Processor Form

Enable and display source: Lot Cost Adjustments only if fiscal policy cost type is Lot Cost Process Status screen: Option to select Lot Cost Adjustments

For Cost Revaluation Source, lot cost adjustment entries are processed for lot cost enabled items and cost

revaluation entries are processed for non-lot controlled provided alternate

cost method is a Standard Cost Type


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3.2 Improvement / Enhancements

This List contains Enhancements delivered on Top of 12.1.3+

Patch Number Patch Description

15954309:R12.GMF.B OPM PRE-PROCESSOR PARALLELISM

16327188:R12.GMF.B ENABLE PARALLEL PROCESSING FOR PRE-PROCESSOR WRAPPER AND POST JLS AT ITEM COST

16103415:R12.GMF.B CREATE INGREDIENT COSTS IN TARGET ORGANIZATIONS BASED ON ITEMS SOURCING RULES

16103437:R12.GMF.B ALLOW NEGATIVE VALUES IN PERCENTAGE OVERHEADS SCREEN & Display Descriptive Flexfield in Cost

Components

16103451:R12.GMF.B ACTUAL COST - PROVIDE ACTUAL COST BY COST LEVEL IN ITEM COST SCREEN

14012736:R12.GMF.B OPM ACCOUNTING PREPROCESSOR WRAPPER, DIFFERENT SOURCES THAN STANDARD PREPROCESSOR


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3.3 Functional Impact

3.3.1 OPM Accounting Pre-Processor Wrapper Parallel Processing

Maximum of number of parallel processors currently supported is 10.

Purchasing, Order Management and Inventory transactions are equally divided by date and time range.

Production Batch transactions are divided based on Batch Id’s

When the date range is less than one hour and sources being (1) Purchasing or (2) Order Management or (3) Inventory,

only one request will be triggered.

Duplicate requests of wrapper with same sources and date range will run into erro


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3.3.2 Accounting Entries at Summarized Vs Detailed Level

Option to Post Transactions at Item Cost or at Component Item Cost is provided for both OPP Wrapper and OPP Form

Default Option is to post Transactions using Component Item cost both OPP Wrapper and OPP Form.

If Accounting Derivation Rule existed at component class code level, users should submit the process with Component

item cost detail option – “Default Option”.Users should not submit processor option to post transactions at Item Cost


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3.3.3 Item Cost for Ingredient in Target Org using Sourcing Rules

New Profile Option “GMF: Compute Ingredient Cost in target organization based on sourcing rules” if set to “Yes”, rollup

process creates ingredient Item Cost Records in target organization based on sourcing rule setup.

Profile Option has to be set at Site Level.

If there is a pre-existing cost in the target organization either due to Overheads or Recipe validity rules or manually

entered costs, then the processor will not override these existing costs.

Item cost in Source Organization will be used to create Item cost for ingredients in Target Organization.

Item cost in Source Organization for this purpose would include burdens, resource cost, overheads and material cost.

If an item is a Byproduct in the target org and if that item is not used as an Ingredient in the target organization, User

needs to define a cost for such byproduct items in the target organization.

Cost created in Target Organizations shall not be used for computation in Product Cost calculation.

Ingredient Item cost creation in Target org is dependent on Profile value being set to Yes, Item assignment to Target

Org, Recipe Validity Rule for the Target Org, and Existing Item cost in Target Org.

When Item transferred is not ingredient based on any Recipe for Formula applicable in Target Organization, the Item

cost shall not be created based on Source Rule.

Ingredient added at Batch Level shall not be sued for creation of cost using Sourcing Rule.

Ingredient Item Cost shall be created based on Primary UOM of Item in Target Organization.


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3.3.4 Actual Item Cost at This Level and Lower Level

Similar to Standard Cost Actual Item Cost display is divided into This level and Lower Level Costs.

Actual Item cost based on PO Receipts, Resource Cost on Product, Expense Allocations, Overheads , actual Cost

Adjustments shall form part of This Level Cost


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3.3.5 Provide Lot Cost Adjustments, GL Expense Allocations and Actual Cost Adjustments as additional

separate sources in Wrapper

Enable and display source: Lot Cost Adjustments only if fiscal policy cost type is Lot Cost

Process Status screen: Display value of the new flag Lot Cost Adjustments.

For Cost Revaluation Source, lot cost adjustment entries are processed for lot costed items and cost revaluation entries

are processed for non-lot costed , provided alternate cost method is a Standard Cost Type

The Option to process Actual Cost Adjustments and GL Expense Allocations is now extended to OPM Pre-Processor

Wrapper


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Fiscal Policy Cost Method

Cost Method in Use

Item Category

OPM Pre-Processor Wrapper

OPM Pre-Processor Form Additional Information

Lot Cost with Alternate cost

as Standard Cost

Lot Cost with Alternate cost as

Standard Cost

Lot Cost enabled

User should be able to

process Lot Cost adjustments. But GL Expense Allocations and Actual Cost

Adjustments will end with a Warning

Lot Cost Adjustments processed Not Applicable

Lot Cost with Alternate cost

as Standard Cost

Lot Cost with Alternate cost as

Standard Cost

Non-Lot Cost

User should be able to

Process Revaluation Transactions

Revaluation

Transaction is processed Not Applicable

Lot Cost with Alternate cost as Actual Cost

Lot Cost with Alternate cost as Actual Cost

Lot Cost enabled

User should be able to process Lot Cost

adjustments. But, GL Expense Allocations and Actual Cost Adjustments ended in Warning

Lot Cost Adjustments processed Not Applicable


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Fiscal Policy

Cost Method

Cost Method

in Use

Item

Category

OPM Pre-Processor

Wrapper

OPM Pre-Processor

Form Additional Information

Lot Cost with

Alternate cost as Actual Cost

Lot Cost with Alternate

cost as Actual Cost

Non-Lot Cost Not Supported

Revaluation

Transactions are not processed Not Applicable

Actual Cost Method

Actual Cost Method All Items

User should be able to Processes Actual Cost

Adjustments, GL Expense Allocations, Revaluations Transactions.

But Processor will End in Warning when processed for Lot Cost Adjustments

Successfully Processes

Actual Cost Adjustments, GL Expense Allocations, Revaluation Transactions.

If Revaluation is run it may result is accounting of Inventory twice, once for the transaction and another one for Revaluation.

Standard Cost

Method Standard

Cost Method All Items

Successfully Processes Revaluation Transactions. Ends in Warning for Lot Cost Adjustments, Actual Cost Adjustments, GL

Expense Allocations

Successfully Processes Revaluation

Transactions. Not Applicable


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3.4 Performance Improvements

Not Applicable

3.5 Testing Recommendations

The following list is only inclusive but not exhaustive

Key Business Flows for Parallel Processing:

Key Business Flows Expected Results

1 Run OPM Wrapper for Costing/Revaluation Source ,

Number of Processes more than 1

OPM wrapper triggers only one OPP.

2 Run OPM Wrapper for Inventory Transaction , Order

Management , Purchasing Transactions Number of

Processes equal to 10

OPM Wrapper triggers 10 OPP requests the end

date of first request increment by one second

becomes the start date of next request

3 Run OPM Wrapper for Inventory Transaction , Order

Management , Purchasing Transactions Number of

Processes less than 10 but more than 1

OPM Wrapper triggers specified OPP requests

the end date of first request increment by one

second becomes the start date of next request

4 Run OPM Wrapper for Production Batches, Number of

Processes equal to 10

OPM Wrapper triggers OPP requests segregating

the Batch Data based on Batch Id’s. All

transactions relating to a Batch are picked in one

OPP request only.

5 Run OPM Wrapper for Production Batches, Number of

Processes less than or equal to 1 and the Period of

Posting Start date and Posting End Date is less than

One hour

OPM Wrapper triggers OPP requests segregating

the Batch Data based on Batch Id’s. All

transactions relating to a Batch are picked in one

OPP request only.

6 Run OPM Wrapper for Inventory, Order Management,

Purchasing, Number of Processes less than or equal to

10 and the Period of Posting Start date and Posting

End Date is less than One hour

OPM wrapper triggers only one OPP

7 Run OPP and OPM wrapper for all identical Parameters Compare the XLA Headers, XLA Lines between

the OPP processed by wrapper and OPP , there

should not be any discrepancies.

8 Run Detailed Subledger Report for all the above

scenarios

Detailed subledger displays correct entries


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Key Business Flows for Summarized Vs Detailed Accounting :


1 Run OPP Wrapper for Inventory Source with Option

Post Transactions at Item Cost

Make sure Accounting Entries are at Detailed Level

2 Run OPP for Inventory Source with Option Post

Transactions at Item Cost

Accounting Entries are at Summarized Level

3 Run OPP Wrapper for Order Management Source with

Option Post Transactions at Item Cost

Accounting Entries are at Detailed Level

4 Run OPP for Order Management Source with Option



5 Run OPP Wrapper for Purcahsing Source with Option



6 Run OPP for Purcahsing Source with Option Post



7 Run OPP Wrapper for Production Batch Source with



8 Run OPP for Production Batch Source with Option Post



9 Run OPP Wrapper for Cost Revaluation Source with



10 Run OPP for Cost Revaluation Source with Option Post




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Key Business Flows Ingredient Item Cost in Target Org based on Sourcing Rule


1 Switch on the Profile

Create a Source Rule where Source and Target Org are

different, Recipe Validity Rule exists for Target and

Source Org. Ingredient Item cost and on hand quantity

exists in Source Org . Transfer Ingredient quantity

from Source to Target org.

1. Ingredient Item Cost is created in Target Org with

Origin as “Sourcing Rule”.

2. Ingredient Cost created in Target Org shall not be used

in computing Product cost.

3. INV Account from Transfer in Target Org shall be

accounted with Source Rule Item cost created



different. Item cost and on hand quantity exists in

Source Org for a Item which is not used in production

or there exists no Recipe Validity Rule for Target using

this item. Transfer Ingredient quantity from Source to

Target org.

Item Cost shall not be created in Target Org with Origin as

“Sourcing Rule”.





exists in Source Org . Item costs exists in Target Org

created by Copy Costs, Manual Cost Entered, Fixed

Overheads

Ingredient Item Cost shall not be created in Target Org

with Origin as “Sourcing Rule” and existing Item Cost shall

with origin as Copy Costs, Manual Costs, Fixed Overhead

shall prevail.





exists in Source Org . Burdens setup for Ingredient

Item in Source Org and Target Org. No predefined

Item cost in Target Org.

Ingredient Item Cost is created in Target Org with Origin

as “Sourcing Rule”, including Burdens from Source Org.

However Burdens of Target Org shall not be applied to

Item.






from Source to Target org. Add Manual Cost after Item

cost created in Target Org.

Ingredient Item Cost is created in Target Org with Origin

as “Sourcing Rule” and manually added cost row shall be

overridden in next cost rollup run.

6 Switch on the Profile Byproduct Cost is not created in Target Org.


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Source Org. Yield By-product and Product. By-product

cost exists in Source Org





cost exists in Source Org. Byproduct in one Recipe is

used as ingredient in another Recipe.

By-product Item Cost is created in Target Org with Origin

as “Sourcing Rule”


Create a Source Rule where Source and Target Orgs

are different, Recipe Validity Rule exists for Target and


cost exists in Source Org. Transfer By-product from

first Target Org to Second Target Org

Byproduct Cost is not created in first Target Org. By-

product Item Cost is created in Second Target Org with


9 Switch off the Profile





from Source to Target org.

1. Ingredient Item Cost is not created in Target Org with



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Key Business Flows Negative Percentage Burdens:


1 Create Negative Percentage Burdens to the extent of -

100.

More than -100 negative percentage burdens cannot be saved

and ensured that negative burdens are applied to ingredient and

product based on setup.

2 Create negative percentage burdens in fractions Negative burdens are applied to ingredient and product based on

setup.


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Key Business Flows for Lot Costing Revaluation via OPM Pre-Processor Wrapper:


1 Fiscal Policy Cost Method: Lot Cost with

alternate as Standard Cost

Item Category: Lot Cost enabled

OPM Pre-Processor Wrapper: Lot Cost adjustments will be processed , GL

Expense Allocations and Actual Cost Adjustments ended in Warning

OPM Pre-Processor Form :Lot Cost Adjustments will be processed, Submission for

Actual Cost Adjustments, GL Expense Allocations not supported

2 Fiscal Policy Cost Method: Lot Cost with

alternate as Standard Cost

Item Category: Non- Lot Cost enabled

OPM Pre-Processor Wrapper: Revaluation Transaction will be processed

OPM Pre-Processor Form :Revaluation Transaction will be processed

3 Fiscal Policy Cost Method: Lot Costing

with alternate cost method as Actual

Item Category: Lot Cost enabled

OPM Pre-Processor Wrapper: Lot Cost adjustments processed , GL Expense

Allocations and Actual Cost Adjustments will end in Warning

OPM Pre-Processor Form :Lot Cost Adjustments will be processed. Submission for

Actual Cost Adjustments, GL Expense Allocations not supported

4 Fiscal Policy Cost Method: Lot Costing

with alternate cost method as Actual

Item Category: Non- Lot Cost enabled

OPM Pre-Processor Wrapper: Revaluation Transaction will be processed

OPM Pre-Processor Form :Revaluation Transaction will be processed

5 Fiscal Policy Cost Method: Actual Cost OPM Pre-Processor Wrapper: Successfully processes Actual Cost Adjustments, GL

Expense Allocations, Revaluation Transactions. Ends in Warning for Lot Cost

Adjustments

OPM Pre-Processor Form: Successfully processes Actual Cost Adjustments, GL

Expense Allocations, Revaluation Transactions.

Remarks: If Revaluation is run it may result is accounting of Inventory twice,

once for the transaction and another one for Revaluation.

6 Fiscal Policy Cost Method: Standard

Cost

OPM Pre-Processor Wrapper: Successfully processes Revaluation Transactions.

Ends in Warning for Lot Cost Adjustments, Actual Cost Adjustments, GL Expense

Allocations

OPM Pre-Processor Form :Successfully processes Revaluation Transactions

Documents

OPMCostingEnhancementsFunctionalImpact_12_1_13 (1).pdf