Oracle

Standard Cost Accounting in Oracle ERP
The Basics for Discrete Manufacturing Author: Larry Sherrod

Audience
• Cost Accountants • Operations Managers • Procurement Specialists
It is importantyou already have a basic understanding of Oracle navigation and Standard Costing Methods. At a minimum, you will need the Inventory, Bills of Materials and Cost Management responsibilities. Theinformation presented is applicable to release 11i and 12 versions of the Oracle Applications.

Areas Covered
• • • • • • Setting the Frozen or Pending Cost Viewing Costs and Cost History Updating CostsCosting for Bills of Materials Resource Costs Assembly Cost Rollups

Setting the Cost Value

Here is the responsibility and path to the Item Costs screen.

Depending on your setups, you canchange all cost types except Frozen, so in order to update a cost, you must first update a non-frozen cost.

Here you can update the cost manually. Be sure to save your work after you make thechange.

Viewing Cost and Cost History

Here you can see the break down of costs and the different cost types. This is a good form to use Folder Tools on so you can see more information.

This isa very useful screen. It tells us the carrying cost of the part, the current quantity on-hand and the last PO and Invoice price paid for the part.

The above image shows the path to the StandardCost History form. DON’T use the Item Cost History form. It is for other costing methods.

The cost history shows changes made over time to the unit cost of the part. In the tabbed areas you can alsoview the adjustments made during each of the updates.

Updating Cost

Now you have a situation where the pending and frozen costs are different, so you want to update the frozen cost with thenew pending cost.

It is very important you performed all your research before you update your costs because it will revalue the on-hand inventory balances. Submitting the request begins the...