Comments

  • Sritama Sarkar

    Hi Sam,

      This change has already made its way in 19B, there is no change in behavior in 19C.

    The expected results in the above example - $3 {rate/hr} * (2/2) {hr/unit} * 2 {units} = $6

  • Sritama Sarkar

    This should not be an issue in 19C. Also, please go through my reply to another post on this thread where I explain the intended behavior with an example. Please verify that this is different from your current observation of the system.

  • Sritama Sarkar

    Hi Sam,

      My apologies for forwarding the internal bug link. We don't have an external link for this issue logged as this was identified internally. But here is the most important update that explains the change and the rationale behind that change -

    When we set up an operation, we have to specify the resource usage as well as
    the # of resource units assigned.

    Let's assume that the resource Drill is specified to be used for 2 hours
    (Usage) and has 2 units assigned. Assuming that drill has an hourly rate of
    $3, the resource consumption would be costed as $3 {rate/hr} * 2 {hrs} * 2
    {units} = $12.
    However, if you look at the manufacturing documentation
    (docs.oracle.com/en/cloud/saas/supply-chain-management/r13-update17d/faumf/man
    aging-production.html#FAUMF2014090), the formula to calculate the operation
    duration is different. The more the assigned units, the lesser the time it
    takes for the resource to complete that operation. Manufacturing team
    confirmed that this is the behavior in EBS as well.
    In EBS, cost rollup disregarded the resource units which seems to be logical,
    going through the above formula. In the given example, the total resource
    cost should be $3 {rate/hr} * (2/2) {hr/unit} * 2 {units} = $6.
    Therefore, the cost rollup should disregard resource units while calculating
    the cost of resource usage.

  • Sritama Sarkar

    Hi Armando,

      What release is this? Per this bug, cost rollup no longer inflates the resource cost by # of units assigned. Can you give screenshots of -

    1. Resource usages setup

    2. View Rolled-up costs

  • Sritama Sarkar

    Hi Ashish,

      You can have costs at cost org level for items with any cost method - standard, actual and average.

    Having said that, it sounds like user really wants to do a simulation to see how the costs work out by rolling up costs from 1 plant vs the other. If that is the requirement, 1 approach to doing so would be to have unique work definition names maintained for every plant, say PlantA etc. When user wants to do cost rollup, they run assembly with work definition in Plant A (this is assuming that all sub-assemblies have work definitions in Plant A as well). To do this user can create a cost scenario and specify work definition name as the topmost work definition selection criterion. Next, user can create another cost scenario and have it rollup all items from Plant B. User can review the costs and then publish the scenario which has the most optimal costs.

    I would recommend you to explore setting up VU at Inventory Org level if you have standard costed items, simply because cost rollup has the limitation where it expects all items within an item structure to be manufactured in the same plant (this is as of Release 20A). We don't have the functionality to do a weighted average of the costs across plants to arrive at the rolled up costs of assemblies.

    Hope this helps.

  • Sritama Sarkar

    Hi Ashish,

      In order to advise you, I want to understand the expected result from customer's perspective. You mentioned that VU is at the Cost Org level although work definitions exist in both plants. If that is the setup, what does customer want to do - pick up work definition from a particular plant and calculate the cost at the Cost Org level which will be applicable for both plants? Why did the customer choose to maintain costs at Cost Org level if the item is getting manufactured in both plants?

  • Sritama Sarkar

    Hi Sam,

      Thanks for letting us know about your workaround. 

    It sounds like you will benefit by having make item/buy item flag functionality for cost rollup in cloud. If so, may I suggest that you create an idea in Idea Lab so that we can prioritize this feature from our backlog.

  • Sritama Sarkar

    Hi Sam,

      Is there a work definition for Item A active when scenario 2 cost rollup was run? If yes, then the cost will be calculated by the rollup process. Only when there is a work definition for an item, but you don't want to rollup its cost, you manually enter the cost of the item (which is what you did rightly) and cost rollup will honor the manually entered cost and not attempt to roll up the item cost again.

  • Sritama Sarkar

    Hi Ekansh,

      In cloud, we have some fundamental differences from EBS (both in terminologies and functionalities). In manufacturing, when you setup your work definitions (routing) in a manufacturing plant, you specify operations that happen in a workcenter. Each of these operations consume materials and direct and indirect labor. In costing, a cost planning user creates a cost scenario, enters material cost estimates, resource rates and overhead rates and runs cost rollup. Based on the work definition structure and cost estimates, cost rollup gives you the calculates costs of your make assemblies. You can revise your estimates and re-run cost rollup to simulate various scenarios. When you are ready to freeze your standard costs, you publish your cost scenario with all the costs defined underneath. At this point, cost accounting is ready to consume these standard costs to process your transactions, perform inventory revaluation etc.

    I gave you a high level overview of how cost planning works in cloud. Let me know if you have any specific usecase and we can discuss more.

  • Sritama Sarkar

    Hi Ekansh,

      Can you elaborate more on your requirement here?

    Thanks

  • Sritama Sarkar

    Good question, Vishnu! And yes, when you define resources, you do have the ability to create resource rate from manufacturing screen. While defining resource rates from manufacturing application, system will default the earliest unpublished scenario that exists for the cost org, to which the manufacturing org is associated with. However, note that you will still need to create a cost scenario in costing for the defaulting to work.

  • Sritama Sarkar

    Hi Vishnu,

      No, once a scenario is published, you can't make any changes to it. When you publish the new resource rate, say as of 01-Aug-2019, using a new cost scenario, the previous resource rate will automatically get end dated as of 31-Jul-2019. User doesn't need to end date any cost manually.

     

  • Sritama Sarkar

    Hi Vishnu,

      You need to create a new cost scenario with effective date as of which your resource cost is getting updated, enter new resource costs within that scenario and publish the scenario. This will ensure that your new resource costs are published (frozen) and available to cost accounting to cost your transactions.

  • Sritama Sarkar

    Hi,

      What is your goal here? You want to rollup every make item and publish its cost? In 19B, we introduced data optimization which ensures that cost record doesn't get generated if the rolled up cost is exactly equal to its current standard cost. This has been done to improve performance. reduce unnecessary adjustment entries, redundant inventory revaluation etc. Does this explain the behavior that you are observing?

  • Sritama Sarkar

    Hi Dev,

      Which release is this? 

    Can you provide me with the screenshot of the UI along with the error message when you try to enter the item cost?