GME -Outside Process Manufacturing

Oracle Process manufacturing-Outside Processing –Operation / Batch Release12.2.4+ An Oracle White Paper December 2014

Disclaimer

The following is intended to outline our general product direction. It is intended for information purposes

only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code,

or functionality, and should not be relied upon in making purchasing decisions. The development, release,

and timing of any features or functionality described for Oracle’s products remains at the sole discretion of

Oracle

Table of Contents

1. OVERVIEW ............................................................................................................................................................................................................................................................... 5

2. CHANGES IN FORMS AS PART OF OUTSIDE PROCESS MANUFACTURING ............................................................................................................. 9

2.1. Generic Resource ............................................................................................................................... 9

2.2 Plant Resource .................................................................................................................................... 9

2.3. Process Execution Parameters ......................................................................................................... 10

3. RECIPE ................................................................................................................................................................................................................................................................. 11

3.1Create Outside Processing Item (Inventory Super User (Process Operations)> ................................ 11

3.2 Create Generic Resource (Process Engineer >Step>Generic Resource) ........................................... 13

3.3 Create Plant Resource (Process Engineer >Setup>Plant Resource) ................................................. 14

3.4 Create Activity (Process Engineer > Setup>Activity) ......................................................................... 14

3.5 Process Operations (Process Engineer > Process Operations) ......................................................... 14

3.6 Create Process Routings (Process Engineer > Process Routings)...................................................... 16

3.7 Create Formula (Formulator > Formulas) ......................................................................................... 16

3.8 Create Recipe (Formulator > Recipe) ................................................................................................ 18

3.9 Create Validity Rule (Formulator > Recipe>Validity Rule) ................................................................ 18

4. ABILITY TO CREATE THE AUTOMATIC REQUISITIONS ........................................................................................................................................................ 20

4.1 Automatic Creation of Requisitions at Batch Creation ..................................................................... 20

4.1.1 Setup to create the Automatic Requisitions ....................................................................... 20

4.1.2 Process to generate the Requisitions ................................................................................. 20

4.2 Automatic Creation of Requisitions at Batch Release ...................................................................... 23



4.3 Automatic Creation of Requisitions at Batch Step Release .............................................................. 26



4.4. MANUAL CREATION OF REQUISITIONS / PURCHASE ORDERS. ................................................................................................................................ 29

4.5 SYNCHRONIZATION OF THE BATCH AND PURCHASE ORDERS................................................................................................................................. 29

4.5.1Change Management Table for the changes on Batches to PO ..................................................... 30

4.5.1.1 for Quantity Changes.......................................................................................................... 30

4.5.1.2 for Date Changes ................................................................................................................ 31

4.5.1.3 Batch Actions where the Requisition / PO can be cancelled ....................................... 31

4.5.1.4 Batch Actions which should not be allowed (If there are Open Requisition / PO

exists) ................................................................................................................................................. 32

4.5.1.5 Automatic Quantity Synchronization on Batch Changes .............................................. 33

B) Create Batch ................................................................................................................................ 33

Please refer section 4.1.2 (Create batch) to create the batches .............................................. 33

4.5.1.6 Automatic Date Synchronization on Batch Changes .............................................................. 39

4.5.1.7 Batch Actions – Cancel batch .................................................................................................. 44

Refer the section 4.5.1.5 A) Setup to create the required setup ............................................... 44

4.5.1.8 Batch Actions – Reroute.......................................................................................................... 48

4.5.1.9 Batch Actions – Delete Step .................................................................................................... 53

4.5.2 Batch Actions which would not accept when open Requisition / PO exists .................................. 58

4.5.2.1 Batch actions which would not accept when open Requisition / PO exists –Batch Unrelease

............................................................................................................................................................ 58

4.5.2.2 Batch actions which would not accept when open Requisition / PO exists –Batch

complete to closed ........................................................................................................................... 64

4.5.2.3 Step actions which would not accept when open Requisition / PO exists –Unrelease

Step .................................................................................................................................................... 70

4.6 ACCOUNTING TEMPLATE FOR OSP TRANSACTIONS......................................................................................................................................................... 83

4.7 ABILITY TO RECEIVE FULL / PARTIAL QUANTITY .................................................................................................................................................................. 84

4.7.1 Full Quantity receipt ...................................................................................................................... 84

4.7.2 Partial Quantity receipt ................................................................................................................ 110

4.8 MANAGING RETURNS AND ADJUSTMENTS............................................................................................................................................................................ 111

4.8.1 Return the material for rework .................................................................................................... 111

4.8.2 Managing Adjustments (Positive correction for receipt) ............................................................ 129

SUMMARY ............................................................................................................................................................................................................................................................. 146

1. Overview Outside Process Manufacturing is the one of the requirement for process manufactures where they do not

have the capabilities or equipments to perform all the steps in their manufacturing process, the most and

common outside process is the one where certain operations in a process routing are performed by the

subcontractor. This will be referred as Outside Processing. The scope of this document is to provide OPM

users with information related to Outside Processing for step / operation.

This document aims to explain the following in detail:

Changes in forms as part of Outside Process Manufacturing

System Setup

Recipe

Creation of Automatic Requisitions

Synchronization of batch and Purchase Orders

Definitions

Manufacturing Partner (MP)

Within this document, Manufacturing Partners are defined to be the businesses that perform a contract

manufacturing function for the PPM. Many times, they receive intermediate product from a PPM or from

other trading partners and then do additional work on the same

Parent Product Manager (PPM)

This is a manufacturing company that owns the product designs that it sells and must manage its supply

chain whether the manufacturing processes are internal or outsourced to Manufacturing Partners. In this

Doc, PPM is assumed as a deploying company

Outside Processing (OSP)

Batch-Step Level Outsourcing. Specific operation / step of a sequence in a routing is performed by a

Manufacturing Partner.

Author Assumptions

Author assumes that the process users are well known about the Product Development, Process

Execution applications to create and execute the process, Also working knowledge on

Purchasing and Inventory

Created the setup and important transactions for OSP Item type –Assembly, the similar kind of

process can be followed for OSP item type –Resource, please make a note of below

Author has used representative data from

Pharmaceutical industry as an example to explain

the setup and transactions. Business Process

mappings for other industries should be similar.

Business Model Process

High level view of the business processes involved in the OSP flow are depicted with the below

Setup

Batch Created

Batch Updated/Rescheduled

Batch Released

OSP Step Released

OSP step quantity updated and

resource transactions

created

Batch Completed

Batch Closed

Requisition/PO Release Created

Batch Updated/Step rescheduled

Requisition/PO updated

PO Received Fully/Partially

Close PO

Solution Overview

The core of the solution is to associate outside manufacturing services to a resource that is used in the batch that requires the OSP operation. The Resource is associated with an non-Inventory Item classified to be OSP type. Upon release of the Batch, a Purchase Order (PO) gets created (via creation of a Requisition) to reflect the Outside manufacturing services. This is configurable and the PO can be created upon start of the batch or OSP operation if desired. The Batch and Purchase Order are linked by storing the required linkage batch data into the PO schema. The two documents – Batch and PO are kept in synch e.g. for changes in date of the batch leads to change in Need by Date on the corresponding line of the PO.

When the OSP item on the PO is received, corresponding resource transactions are triggered for the OSP batch step and the OSP Actual step quantity gets updated with the receipt quantity. Production supervisor should take the action of completing the step once the complete step quantity is received.

The service charges for the OSP resource are defined as part of Resource cost and are considered in the cost calculation for the product based on the cost source setup as Resource Cost in the OSP resource definition. If the cost source is set to the PO Price, the OSP resource charges are calculated as per the PO Price.

The below diagram represent the high level solution overview

OPM Outside Processing Business Flow

Setup Execution Costing

OP

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Create OSP Item

Create Generic Resource (OSP

Enabled)

Create Plant Resource

(Associate OSP Item)

Create RoutingCreate Recipe and

Validity Rules

Setup Process Execution

Parameter(Requisition Creation Time)

Define Sourcing rules for supplier

Define Over receipt Tolerance

Define Receipt Routing

Define OSP Line Type

Create Resource Cost for OSP resource

Release Batch Release Step

Create Req is set at Batch release

Create Req is set at Step Release

Create Requisition Interface Record

Create Batch

Create Req is set at Batch Creation

B

B

Requisition Import

Concurrent Request

Req Creation with Batch Association

Auto Create PO

Concurrent Request

Create and Approve PO C

Routing Type Receive Inspect Deliver

Standard

Receive with Inspection

Corrections/Returns

Standard Cost rollup/Actual

Cost processor

OSP resource with Standard

rate flag

Calculate Resource charges@standard

cost

Calculate Resource Charges@PO Price

Yes

No

Start

Setup Standard Flag in Plant

resource

A

A

Direct

Receiving Transaction Processor

Create Resource transaction

Interface record

Full

Create Resource transaction

Update the Actual Step

Quantity

Resource Transaction

Manager

Setup Journal Line Entry for the OSP

resource

Run Accounting Preprocessor

Create Accounting/Export to GL

End

Create Operation(Add OSP resource)

Standard Cost rollup/Actual

Cost processor

2. Changes in forms as part of Outside Process

Manufacturing

2.1. Generic Resource

This would hold the main definition of the resource, also there will be a new flag “Outside Processing”.

While defining the resource for the OSP operations the user will have to use this form.

When the resource is not used any operation, as per the current design this flag is editable.

If the flag is checked or unchecked, the corresponding plant resources should also be saved with the OSP flag set or unset.

Definition the resource as OSP across the generic and plant resource will be governed by this OSP flag.

.

2.2 Plant Resource

There would be visual indicator as “Outside Processing” in this form. This would be non editable field; the value of this indicator will be dependent on the set up at the Generic form level. If the “Outside Processing” flag is checked in the Generic Resource form then the same would be reflected in this form and vice versa.

The association of the OSP item will be done at this level. The OSP item LOV would display all the OSP

items defined in that specific plant/inventory organization. Only the OSP items that belong to the

organization of the plant resource should get displayed in the LOV.

OSP Item field should also not be editable if there exists any batches created with this OSP

resource

Possible to associate different items for the same OSP resource in different plants

Possible to associate the same service item to different resources if the business requires doing

so

Selecting Cost Source is mandatory, default value is Resource Cost

2.3. Process Execution Parameters

A new tab, 'Outside Processing' is added to this form and the available setup information is as follows

a) Requisition Creation Time –available values are

At Batch Creation : Requisition would be created at the time of batch creation

At Batch Release : Requisition would be created at the time of batch Release

At Step Release : Requisition would be created at the time of batch Step Release

Manual: Create requisition manually and assign the required batch number.

b) Batch Change Controls for Purchasing Documents

Propagate Batch Change to Purchasing

Automatic - System automatically updates the corresponding Requisition/Purchase order

for the batch changes

Manual: User has to manually update the corresponding Requisition/Purchase order for

the batch changes

c) Need-By Date Tolerance: Need by Date Tolerance controls the PO need by date change using

Days Early

Days Late

3. Recipe

Author assumes that the process users are well known about the Product Development, Process

Execution applications to create and execute the process.

Outside Processing item can be defined as Assembly or Resource as per the requirement.

Steps to create the outside Processing Recipe– outside processing item type Assembly

3.1Create Outside Processing Item (Inventory Super User (Process Operations)>

Main tab

Inventory Tab

Purchasing Tab

3.2 Create Generic Resource (Process Engineer >Step>Generic Resource)

3.3 Create Plant Resource (Process Engineer >Setup>Plant Resource)

3.4 Create Activity (Process Engineer > Setup>Activity)

3.5 Process Operations (Process Engineer > Process Operations)

OSP Operation (Step 10)

In-House Operation (Step 20)

3.6 Create Process Routings (Process Engineer > Process Routings)

3.7 Create Formula (Formulator > Formulas)

Products tab

Ingredients Tab

3.8 Create Recipe (Formulator > Recipe)

3.9 Create Validity Rule (Formulator > Recipe>Validity Rule)

Business users can also create the Recipe with the OSP Item type as –

Resource as per the requirement, please note the below example for better

understanding for configuration and usage

Item Unit Type - Resource

For the batch of 10,000 Tables, the resource usage calculated would be 10Hrs.

Purchase order is created for 10 HR (Assuming that the OSP Item UOM is also HR)

If the resource usage UOM is different from that of the OSP Item UOM, the quantity will not be

converted and we still create the purchase order with the OSP item UOM. So user has to make

sure that they do set up the OSP item UOM as same as the resource usage UOM.

Item Unit Type – Product

For batch of 10,000 tables EA

Purchase order is created with the Primary product quantity of the batch ,10000 EA (Assuming

that the OSP item UOM is also EA)

If the primary product UOM is different from that of the OSP Item UOM, the quantity will not be

converted and we still create the purchase order with the OSP item UOM. So user has to make

sure that they do set up the OSP item UOM as same as the primary product UOM.

4. Ability to create the Automatic Requisitions

4.1 Automatic Creation of Requisitions at Batch Creation

When there is an operation in a routing that is not performed in-house, service is required from

subcontractor, for this we need to create a requisition and one way to create the requisition is at the Batch

Creation level

4.1.1 Setup to create the Automatic Requisitions

Navigation: Production Supervisor >Setup>Parameters

Process:

1. Navigate to the Parameters window, select the required Process enabled Organization and you will find

the Process Execution Parameters window.

2. Navigate to Outside Processing tab

3. Select Requisition Creation Time – At Batch Creation

4. Save the record

.

4.1.2 Process to generate the Requisitions

A) Create Batch

Navigation: Production Supervisor >Create Document / Batch Details

(Author used Batch Details window)

1. Navigate to the Batch details window, select process enabled organization, ‘Find Batches' window

opens

2. Click on New, Create Batch /Firm Planned Orders window opens

3. Leave the default information like Organization Name and Document Type

4. Select the Recipe name and version from list

5. Click OK, note the batch number.

Ingredients Tab

Products Tab

Batch Steps

B) Run Requisition Import

Navigation> Purchasing Super User (Process Operations)> Reports> Run

Process:

1. Navigate the Run window, Submit a new Request window opens

2. Select Single request (Default value)

3. Click OK, Submit Request window opens

4. Select Requisition Import request from list of values

5. In Parameter, select the Import source as OPM-OSP

6. Click OK

7. Click Submit

8. Click No on the Decision message “Request Submitted (Request Id =xxxx), Submit another request?

9. Click Find on the Find Requests window

10. Check the request status (it should be completed normal), you will also find the child request Create

releases along with.

C) Check the Requisition Number

Navigation: Purchasing super User (Process Operations) >Requisitions >Requisition summary

Process:

1. Navigate the Requisition summary window, Find Requisitions window opens

2. Select the Import Source as OPM-OSP

3. Select the OSP item from list

4. Select Lines in the Results region

5. Click Find

6. Select the Requisition number; choose the Show Field from Folder Menu

7. Select the Job/Batch from (folder value added to the requisition summary window with batch number)

4.2 Automatic Creation of Requisitions at Batch Release


Please follow the steps as per 4.1.1 to make the setup (Select the Requisition Creation Time as

Batch Release)


Please follow the steps process as per 4.1.2 to

A) Create the batch

Ingredients tab

Products Tab

Batch Steps

B) Release Batch

1. In the Batch Details window Choose Release from Actions menu, Release Batch window opens

2. Enter / Select the desired Actual Start Date

3. Click OK

4. Acknowledge exceptions if any, click Proceed. Batch status changes to WIP, Actual Start date filled-in

B) Run Requisition Import

Please follow the above requisition import process as per section 4.1

C) Check the Requisition number

Please follow the above said check requisition process as per section 4.1

4.3 Automatic Creation of Requisitions at Batch Step Release


Please follow the steps as per 4.1.1 to make the setup (Select the Requisition Creation Time as

At Step Release)


Please follow the steps as per 4.1.2 to

A) Create batch

Ingredients tab

Products Tab

Batch Steps

B) Release batch

1. In the Batch Details window, Choose the Release from Actions menu, Release batch window opens

2. Enter / Select the desired release date

3. Click OK

4. Acknowledge the exceptions if any, click on Proceed

5. Batch Status changes to WIP, Actual Start (date) filled -in

C) Release Step

1. From Batch steps window, select the OSP Step

2. Choose the Release Step from Actions menu, Release Batch Step window opens

3. Enter / Select Actual Start date

4. Click OK, Step status changes to WIP, Actual Start date filled-in

D) Run Requisition Import

Please follow the above requisition import process as per section 4.1

B) Check the Requisition number

Please follow the above said “check requisition process” as per section 4.1

Please note requisition Need-By date is derived from OSP step Plan completion Date in a batch.

4.4. Manual creation of Requisitions / Purchase Orders.

1. Please Refer the Purchasing user guide to know about the requisition / Purchase Orders creation

process

2. Please makes sure to enter required information in the Outside Services tab.

When the Requisition Creation Time parameter is set to ‘Manual’, the system would not create the

requisition automatically when the batch is created or released or step is released. User has to manually

create the requisition or the purchase order. While associating the Batch information at the Purchase

order distribution level, it should only be allowed to enter for the following criteria:

Batches or Batch step status should be in ‘Pending’, ‘WIP or ‘Completed’ and the batch contain OSP

resources.

This option allows you to automatically charge outside processing resources at an OSP step, but does

not link the creation of the requisition to either creation or processing of the batch or step

4.5 Synchronization of the Batch and Purchase Orders

For the changes done in a batch, system is capable to synchronize the batch changes automatically /

Manually to Purchase Orders as per the setup, the supported actions are

Batch Reschedule

Step Reschedule

Batch/step quantity change

(If the OSP item unit type is Resource, plan resource usage also would be updated)

Re-routing

Batch Cancel

Batch Scale

Batch Termination

(Note: the current validation on batch terminate action is an error message popup if the PO/Requisition

in open status OR resource transactions are in place for OSP step, and batch terminate action would not

sync with PO)

4.5.1Change Management Table for the changes on Batches to PO

4.5.1.1 for Quantity Changes

For the batch actions like Scale batch/Update Primary product quantity/Update resource usage resulting

in the increase in quantity, we should update the corresponding requisition and Purchase order. If the PO

update is not allowed, a new requisition should be created for the difference in the quantity update

Update Requisition and Purchase order’s quantity is allowed only if

No Records in Requisition Interface Table

Only one Purchase order exists

Batch/Step

Status

Batch Action Parameter: Propagate

Batch Changes: Yes

Parameter:

Propagate Batch

Changes: No

Pending Scale Update Requisition and

PO/Warning

No Action

Update planned

Product qty

Update Requisition and

PO/Warning

No Action

Update OSP planned

resource usage


PO/Warning

No Action

WIP

4.5.1.2 for Date Changes

4.5.1.3 Batch Actions where the Requisition / PO can be cancelled

PO/requisition cannot be canceled if:

PO/requisition was in a status other than Approved, or Rejected.

PO/requisition was already closed, or finally closed, or canceled, or put on hold.

There exist Requisition interface records

Batch Status Batch Action Parameter: Propagate

Batch Changes: Yes

Parameter:

Propagate Batch

Changes: No

Pending

Reroute Cancel Requisition/

Recreate Requisition

Warning

Cancel Cancel Requisition and PO Warning

Delete Step/

Resource

Cancel Requisition and PO Warning

Update WIP plan

Product qty


PO/Warning

No Action

Batch/Step

Status

Batch Action Parameter: Propagate

Batch Changes: Yes

Parameter:

Propagate Batch

Changes: No

Pending

Reschedule

Batch/Step

Update the NBD of

Requisition and PO

No Action

WIP Reschedule

Batch/Step

Update the NBD of

Requisition and PO

No Action

Step Status Step Action Parameter: Propagate

Batch Changes: Yes

Parameter: Propagate

Batch Changes: No

Pending

Delete Step/

Resource

Cancel Requisition and PO Warning

4.5.1.4 Batch Actions which should not be allowed (If there are Open Requisition /

PO exists)

Open PO/requisition exists if:

Purchase order status is not ‘Finally Closed’, 'Closed for Receiving' and the line is not cancelled

OR

Purchase order line is 'Closed for Receiving' and the line is not cancelled and quantity received is

not equal to the total quantity delivered OR

The line of Requisition is not cancelled OR

There exist requisition open interface records

Batch Status Batch Action Open PO/Requisition

Exists

No Open

PO/Requisition

Exists

WIP

Un release Error Out Proceed

Complete Warning and Proceed Proceed

Terminate Error Out Proceed

Completed

Close Error Out Proceed

Step Status Step Action

WIP

Un release Error Out Proceed

Complete Warning and Proceed Proceed

Completed

Close Error Out Proceed

4.5.1.5 Automatic Quantity Synchronization on Batch Changes

After creation of the purchase order, changes done for Quantity in a respective batch, possible to

synchronize the quantities automatically to PO

A) Setup

Production Supervisor >Setup>Parameters

Process:

1. Navigate the Parameters window, select the desired Process enabled Organization; you will find the

Process Execution Parameters window.

2. Navigate to Outside Processing tab

3. Select Requisition Creation Time – At Batch Creation (As the case may be)

4. Select Propagate Batch Change to Purchasing -Automatic

5. Save the record

B) Create Batch

Please refer section 4.1.2 (Create batch) to create the batches

Ingredients tab

Products tab

Batch Steps

C) Requisition Import

To Import the requisition, please refer the section 41.2 - B) Run Requisition Import

D) Check Requisition number

To check the requisition number, please refer the section 4.1.2 C) Check Requisition number

B) AutoCreate Purchase Orders

Navigation: Purchasing Super User (Process Operations) >AutoCreate

1. Navigate the AutoCreate window, Find Requisition Lines window opens

2. Click on Clear to clear the defaulted information like Buyer and Ship-To

3. Enter / Select the requisition number

Find Requisition Lines window

4. Click Find, AutoCreate Documents window opens

5. Click on Automatic, New Document window opens

6. Select the Supplier name and site (Subcontractors name)

7. Click Create, AutoCreate to Purchase Orders window opens

8. Approve the Purchase Orders / Follow the approval process as the case may be

B) Update Planned Product Quantity

Navigation: Production Supervisor > Batch Details

1. Navigate the Batch Details window, Select Org, Find Batches window opens

2. Enter / Select the batch number

3. Click Find, Batch Details window opens

4. Navigate to Products tab, Change the planned quantity (Author changed the planned qty from 200 to

250)

5. Save the record

6. Close the window

B) Check the Planned Qty update In PO

Navigation: Purchasing Super User (Process Operations)>Purchase Orders>Purchase Order Summary

1. Navigate the Purchase Order Summary window, Find Purchase Orders window opens

2. Enter the Purchase Order number

3. Click Find, Purchase Orders Headers window opens

4. Click Open (You will see the new updated quantity, and also you will see the Revision number for PO)

4.5.1.6 Automatic Date Synchronization on Batch Changes

A) Setup

Refer section 4.5.1.5 A) Setup to make the required setup.

B) Create Batch

Refer the section 4.1.2 A) Create batch section to create the batch

C) Requisition Import

Refer the section 4.1.2 B) Run Requisition Import to import the requisition

D) Check Requisition Number

Refer section 4.1.2 C) Check the requisition number

E) AutoCreate Purchase Order

Refer section 4.5.1.5, F) AutoCreate Purchase Orders to AutoCreate

Purchase Order

E) Reschedule Batch

Navigation: Production Supervisor >Batch Details

1. Navigate the Batch Details window, Find Batches window opens

2. Enter the batch number


4. Choose the Reschedule from Actions menu, Reschedule window opens

5. Select the desired reschedule date

6. Acknowledge the Decision message to Yes. “Do you want the application to recalculate the other date

based on the batch creation? If you click No, then data gaps or date truncation can occur.

7. Click OK.

You would see the reschedule planned Start date.

E) Check the Planned start date update in PO

Refer section 4.5.1.5 H) Check the Planned Qty update In PO to check the details of the Planned

Start date update in PO

4.5.1.7 Batch Actions – Cancel batch

Batches can be cancelled after creation of Requisition and PO, in such cases Requisitions / PO also

would be cancelled automatically as per setup

A) Setup

Refer the section 4.5.1.5 A) Setup to create the required setup

B) Create Batch

Refer the 4.1.2. A) Create Batch section to create the batch

Batch Details

Batch Steps

C) Run Requisition Import

Refer section '4.1.2 B) Run Requisition Import’ to import the requisition.


Refer the section 4.1.2) Check the Requisition Number to view the Requisition

E) AutoCreate PO


Find Requisition lines

Purchase Order

F) Cancel Batch

Navigation: Production Supervisor >Batch Details



3. Click Find

4. Choose the Cancel action from Actions menu, you will get the decision message “Are you sure you

want to cancel (Yes / No)?

5. Click Yes, Batch status changes to Cancelled

G) Check the PO status

Refer section 4.5.1.5 – sub-section H. To check the Purchase Order status

Shipments

4.5.1.8 Batch Actions – Reroute

Prerequisite:

1. Create Batch

2. Recipe and Validity rule that uses the Original batch Formula

Rerouting is the process of selecting a different routing for the batch by selecting a new validity rule that specifies a different recipe that has the same formula but a different routing. When you reroute a batch, the Recipe Validity Rules Summary dialog box displays to select the appropriate validity rule, once re-routing is done batch is updated with new Recipe and Version. For OSP bathes the corresponding PO would be cancelled or new requisition / PO would be created in case of Re-routed recipe also has the OSP step. A) Setup:


B) Create Batch


Batch Steps





E) AutoCreate PO



Purchase Orders

F) Rerouting a Batch




4. Choose Reroute from Actions menu

5. Select an effective validity rule with a different routing or without Routing

6. Click OK; you will get the decision message “Use Workday Calendar” Yes / No

7. Click Yes

8. Batch is updated with new Recipe and Version

G) Check the Purchase Order status


Shipments

4.5.1.9 Batch Actions – Delete Step

After creation of the Requisition / PO for any reason step deletion is required in a batch, possible to delete

the step, in such cases the corresponding Requisition / PO would be cancelled automatically as per the

setup.

The same is also applicable for OSP resource deletion.

Setup:


B) Create Batch


Batch Steps





E) AutoCreate PO



Purchase Orders

F) Delete Step


2. Enter the Document number


4. Click on Steps, Batch Steps window opens

5. Place the cursor on OSP step

6. Delete Step

7. Save the record

G) Check the Purchase Order status


Shipments

4.5.2 Batch Actions which would not accept when open Requisition / PO exists

Below said some actions would not possible to execute when the open Requisition and PO exists

4.5.2.1 Batch actions which would not accept when open Requisition / PO

exists –Batch Unrelease

System would not allow users to unrelease the batch / Step when the open Requisitions / Pos are

associated to it OR resource transactions exist for OSP step

.

A) Setup

Please follow the steps as per 4.1.1 to make the setup

B) Create Batch


Batch Steps

C) Release Batch



3. Click OK




E) Check Requisition Number


F) AutoCreate PO



Purchase Order

G) Unrelease Batch




4. Choose Unrelease from Actions menu, you will get the error message “The action is not allowed if

there is open PO / Requisition linked to the batch/step”

4.5.2.2 Batch actions which would not accept when open Requisition / PO exists

–Batch complete to closed

System would not allow users to close the batch when the open Requisitions / Pos are associated to it.

A) Setup


B) Create Batch


Batch Steps

C) Release Batch



3. Click OK


D) Release step

1. Select Step; choose Release Step from Actions menu

2. Enter the Actual Start Date, if you do not enter a date, then this field defaults to system date

3. Click OK, step status changes to WIP



E) Check Requisition Number


F) AutoCreate PO



Purchase Order

G) Complete batch

1. Navigate to the Batch Details window.

2. Query the batch Document number to complete

3. Choose Complete from the Actions menu.

4. Actual Start Date displays the start date entered for the batch. You can edit this field.

5. Enter the Actual Completion Date as the date when the batch is completed and it must be greater than

the Actual Start Date. If there are outstanding issues, then appropriate messages display.

Note: Material transactions not created as it is not required for the current test case.

H) Close batch

1. Navigate to the Batch Details window.

2. Query the batch Document number to close.

3. Choose Close from the Actions menu. The Close Batch dialog box displays.

4. Enter the Batch Close Date, click OK, You will get the error message

“GME_PENDING_RESOURCE_TXN”

("There are no completed resource transactions for the OSP step. Please run resource transaction

manager concurrent program to import pending resource transaction in the resource transaction open

interface”)

4.5.2.3 Step actions which would not accept when open Requisition / PO exists –

Unrelease Step

When open Requisitions or open Purchase Orders exists system would not allow users to unrelease the

step

A) Setup


B) Create Batch


Batch Steps

C) Release Batch



3. Click OK


D) Release Step



3. Click OK, step status changes to WIP and Actual Start Date filled-in

E) Run Requisition Import


F) Check Requisition Number


G) AutoCreate PO



Purchase Orders

H) Receipt

Please follow the section 4.7.1 –subsection H to make the receipt

Find Expected Receipts window

Receipt Header

Receipt Lines

Receipt number

I) Please follow the section 4.7.1 –subsection J to view the receipt details

J) Run Resource Transactions Manager

Please follow the section 4.7.1 –subsection L to run the request

K) Check for Batch Updates

Please follow the section 4.7.1 –subsection M to view the batch updates

Batch Details

Batch Steps

Batch Activities

Step Resources

Resource Transactions

L) Unrelase batch step

1. From Batch Steps window, select the OSP Operation.

2. Choose Unrelease Step from Actions menu, You will get the error message “The total actual

usage of OSP resource transaction which are created by PO is greater than Zero, the batch or

step cannot be unreleased”

4.6 Accounting template for OSP transactions The following JLT's are added to support the accounting for OSP transactions:

Event Class:Batch Resource Transactions

Event Type:Step Completion

New JLT:Purchase Price Variance

New JLT:Receiving Inspection

The below said accounts are related to Sub ledger, required to setup by customers as per planned.

JOURNAL DEBIT CREDIT

Event: Batch Step Completion [OSP Resource Cost Source: Resource Cost]

Receiving Inspection (ISP) Actual Resource Usage @ PO Price

Work in Process Valuation Actual Resource Usage @ Resource Cost

Purchase Price Variance Dr/Cr Actual Resource Usage @ (Resource Cost - PO Price)

Event: Batch Step Completion [OSP Resource Cost Source: PO Price]

Receiving Inspection (ISP) Actual Resource Usage @ PO Price

Work in Process Valuation Actual Resource Usage @ PO Price

Event: Batch Close [OSP Resource Cost Source: Resource Cost]

Work in Process Valuation

Cr/Dr (Actual Resource Usage – Planned Resource Usage) @ Resource Cost

Resource Usage Variance Dr/Cr (Actual Resource Usage – Planned Resource Usage) @ Resource Cost

Event: Batch Close [OSP Resource Cost Source: PO Price]

Work in Process Valuation Cr/Dr (Actual Resource Usage – Planned Resource Usage) @ Resource Cost

Resource Usage Variance Dr/Cr (Actual Resource Usage – Planned Resource Usage) @ Resource Cost

Work in Process Valuation Cr/Dr Actual Resource Usage @ (PO Price – Resource Cost)

Batch Close Variance Dr/Cr Actual Resource Usage @ (PO Price – Resource Cost)

4.7 Ability to receive Full / Partial quantity

When the OSP item on the PO is received, corresponding resource transactions are triggered for the OSP batch step and the OSP Actual step quantity gets updated with the receipt quantity. Production supervisor should take the action of completing the step.

4.7.1 Full Quantity receipt

Below is the information about Resource transactions upon receipt of Purchase order

and update Actual Step quantity of OSP step (Though I have given the example in this

document for OSP item type –Assembly, given the information about the OSP item type

–resource also)

User can receive the OSP service when the batch step is in the status of WIP /

Completed.

As part of the delivery process, the resource transactions for the OSP resource should

get created by running the Resource transactions interface program.

The resource transaction gets created with the resource usage calculated based on the

OSP item unit type.

If the OSP item unit type is Assembly

The resource usage is the (delivered quantity * planned resource usage of OSP

resource in the batch /Batch primary product quantity)

If the OSP item unit type is Resource

The resource usage is the delivered quantity (Delivery transaction’s primary quantity)

A) Setup:


B) Create Batch


Ingredients

Products

Batch Steps

Step Activities

Step Resources

C) Release batch



3. Click OK


D) Release Step








G) AutoCreate PO



PO (Receipt Routing –Standard)

H) Receipt

Navigation: Inventory Super User (Process Operations)>Transactions>Receiving>Receipts

1. Navigate to Receipts window, Select organization, Find Expected Receipts (XX) window opens

2. Enter the Purchase Order number

3. Click Find, Receipts Header (XX) window opens

4. Place the cursor bottom of the window, and click, Receipts lines window open

5. Select the line and save the record

6. Click on Header, note the receipt number

7. Close the window

Make sure that Receiving Transaction Processor complete with normal status.

M) Receiving Transaction (Inventory Super User (Process

Operations)>Transactions>Receiving>Receiving Transaction)

1. Navigate the Receiving Transactions window, Find Receiving Transactions (XX) window opens

2. Enter the receipt number

3. Click Find, Receiving Transactions (XX) window opens

4. Select the line, save the record

J) View receiving details

Navigation: (Inventory Super User (Process Operations)>Transactions>Receiving>View Receiving

Transactions)

1. Navigate the View Receiving Transactions window, Find Receiving Transactions window opens


3. Select the Transactions in the Results region

4. Click Find, Receipt Transactions Summary (XX) window opens

L) Run Resource Transactions manager

Navigation: Production Supervisor>Reports>Run

1. Navigate the Run window, Submit a New Request window opens

2. Select Single Request (Default value)

3. Click OK

4, Select request Resource Transactions Manager from list, leave the default parameters as-it-is

6. Click Submit, you will get the Decision message “Request submitted (Request ID XXXXXXX) Submit

another request? Yes – No

7. Click No

8. Check the view request status, should be completed with normal status

M) Check for batch updates

1. Navigate Batch Details window, Find Batches (XX) window opens

2. Enter the Batch number

3. Click Find, Batch Details (XX) window opens

4. Click on Steps, Batch Steps (XX) window opens

5. Navigate to Step Quantities Tab, You will find the Actual Quantity updated as per receipt

6. Click on Activities, Step Activities (XX) window opens

7. Click on Resources, Step Resource (XX) window opens

8. Navigate to Actual tab, you will find the Actual Total Usage as per receipt.

9. Close the Step Resources window, you will be back to Step Activities (XX) window

10. Close the Step Activities window, you will be back to Batch Steps (XX) window

11. Choose Complete Step from Actions menu, Complete Batch Step window opens

12. Enter / Select Actual Completion date

13. Click OK, Step Status changes to Completed and Actual Complete filled –in

Progress the batch process till complete / closed that includes non-OSP steps completion /

closed, Material transactions and Quality testing etc…

Author completed the batch to run the accounting

N) Accounting process for the batch transactions

Used the Actual Cost

To run the actual cost process: 1. Navigate to the Actual Cost Process window. The Start Actual Cost Process window displays.

2. Enter the Legal Entity.

3. Enter the Calendar. Costs are processed for the legal entity and the cost type linked to this calendar

required.

4. Enter the Period for which actual costs are processed. This period defines the start and end dates for

selecting all transactions. This period in the cost calendar must be either open or frozen (a closed period

cannot be entered).

5. Period Status displays the status of the calendar period (Open, Closed, or frozen). You cannot edit this

field.

6. Specify the actual Cost Type for which all cost calculations are calculated and updated. The default is

the cost type linked to the cost calendar. The cost type also defines which raw material cost calculation

type or product calculation type is used in cost calculations.

7. Specify the date and time that the actual cost processing should start in Start Date. To start the

process immediately, click now.

8. Click Accept to run the process.

Note the reference number assigned by OPM.

9. OPM assigns an identifier number for each individual cost process in Actual Cost Reference. You

cannot edit the entry.

To run the cost update process:

1. Navigate to the Cost Update window. The Start Cost Update Process window displays automatically.

This window lets you begin the update for a specified calendar, period, and cost method. Specify the

criteria by which OPM will select the costs to be processed.

2. Enter the Legal Entity. Transactions for all organizations linked to this legal entity are selected and

included in the cost update process.

3. Enter the code for the Calendar for which the cost update is processed. Costs are updated for the legal

entity and the cost type linked to this calendar required.

4. Enter the cost Period for which the cost update is effective. Note that closed cost periods are locked

from the Cost Update process. Required

5. Period Status displays the status of the calendar period (either Open, Closed, or frozen). You cannot

edit this field.

6. Enter the Cost Type. This should be the same cost type specified on the Fiscal Policy window.

7. If you enter that the update is Final, then the period is marked as frozen at the end of the process. This

locks the component costs for the specified period.

When the costing period is frozen, the following situations apply:

You cannot update the same period costs again (however, you can update new item costs)

You can only inquire on cost component details for the current period (however, you can enter

new cost details)

Only the costs of new items may be calculated and updated.

You can copy costs from a frozen costing period, but not to a period that is frozen.

Overhead details may be queried only.

Resource cost details may be queried only.

8. Enter the date and time that the Cost Update process will start in Start Date. To start the process

immediately, click now. To start the process at a particular date, click Specific Date. Enter the date you

want the cost update to run.

9. Click Accept to run the process.

A reference number is generated by OPM. Note the reference number.

10. Cost Update Reference Number displays a unique identifier number for each individual cost update

process assigned by OPM. You cannot edit the entry.

Run OPM Accounting Pre-Processor

The OPM Accounting Preprocessor window displays the results of the preprocessor run

1. Navigate to the OPM Accounting Preprocessor window.

2. Select Submit Process from the Actions menu.

3. Enter the Legal Entity for which you are running the process.

4. Select the Ledger associated to the Legal Entity and to which you are posting the journal entries to.

5. Cost Type associated to the selected legal entity displays.

6. Select the Fiscal Year for which the processor is run.

7. Select the Period of the fiscal year for which the processor is run.

8. Enter the date in the Open Period.

9. OPM retrieves the corresponding Open GL Fiscal Year for the specified date.

10. OPM retrieves the corresponding GL Period for the specified date.

11. Enter the first day of the period of the fiscal year for which the test subsidiary ledger update is being

performed in Post Start Date.

12. Enter the last day of the period of the fiscal year for which the test subsidiary ledger update is being

performed in Post End Date.

13. Indicate if transaction must be posted when there is no cost.

14. Select the sources to run the process for:

Inventory Transactions

Product Batch Transactions

Purchasing Transactions

Costing Transactions

When you select Costing Transaction, the Cost Revaluation Parameters tab is enabled.

Select Revaluation Transactions and or Actual Cost Adjustments.

15. Enter the date and time that the preprocessor must start in Start Date.

16. Click now to start the process immediately.

17. To start the process at a particular date, click the Specific Date radio button.

18. Enter the date you want the preprocessor to run.

19. Click Ok to run the process.

The reference number displays make a note of it.

Run Subledger report

Below shown results are as per the above said (see 4.6) accounting template for OSP transactions.

Resource type: OSP Resource Cost Source: Resource Cost

4.7.2 Partial Quantity receipt

Please follow the 4.7.1 Receipt process for Partial receipt also; just the difference is receiving

partial quantity instead of full.

4.8 Managing Returns and Adjustments

Return of OSP item/service is allowed for rework. Also the capability to reverse over-receipts that are

erroneously transacted in the system

4.8.1 Return the material for rework

( Author assumes that the return is because of the poor quality of the product or service)

A) Setup: Please follow the steps as per 4.1.1 to make the setup

B) Create Batch


Batch Steps

C) Release Batch



3. Click OK


D) Release Step




G) AutoCreate PO



Purchase Orders

H) Receipt



Receipt Header

Receipt

I) Please follow the section 4.7.1 –subsection I to make the Receiving Transaction

N) Please follow the section 4.7.1 –subsection J to view the receipt details

O) Run Resource Transactions Manager

Please follow te section 4.7.1 –subsection L to run the request

P) Check for Batch Updates


Batch Details

Batch Steps

Step Activities

Step Resources

Q) Perform Quality Testing

Prerequisites: Specification with WIP validity Rule

Perform the quality testing for the outside processing step and note the sample number from batch

R) Find sample and change the disposition to Pending

Intermediate item (which is nothing but OSP step ) would not carry any Inventory item code,

hence create specification with Final Product and assign the tests as per Intermediate item

(OSP step), and proceed for testing…

It is also advised to create another specification with Product code which is required to perform

the final product (Finished Goods) testing at the end of the batch processing.

Navigation: Quality Manager >Samples > Item Samples

1. Navigate the Item Samples window, Item Samples window opens

2. Click Find , Find Samples window opens

3. Enter Sample number and click Find

4. Change the Disposition to Pending from Planned

5. Enter the Quality laboratory

6. Save the record

S) Enter Quality Results for sample

1. Click on Results, Results (XX) window opens

2. Enter the out of Spec result.

3. Change the Disposition to Reject

T) Return the material / Service

Navigation: Inventory Super User (Process Operations > Transactions>Receiving>Returns

1. Navigate Returns window, Find Returns (XX) window opens

2. Enter Receipt Number

4. Click Find, Receiving Returns (XX) window opens

5. Select line; enter Quantity and Select Return To as Supplier

6. Save the record

U) Check the View receiving transactions

Please follow the section 4.7.1 –subsection J to view the receipt details

V) Resource Transactions Manager


W) Check for Batch Updates


Batch Details

Batch Steps

Batch Activities

Step Resources

4.8.2 Managing Adjustments (Positive correction for receipt)

A) Setup


B) Create Batch


Products tab

Batch Steps

C) Release Batch



3. Click OK


D) Release Step




G) AutoCreate PO



Purchase Order

H) Receipt



Receipt Header

Assume that the user has mistakenly changed the quantity to 20 instead of 200

I) Please follow the section 4.7.1 –subsection I to make the Receiving Transaction

J) View receiving details

Navigation: (Inventory Super User (Process Operations)>Transactions>Receiving>View Receiving

Transactions)

1. Navigate the View Receiving Transactions window, Find Receiving Transactions window opens


3. Select the Transactions in the Results region

K) Run Resource Transactions Manager


L) Check for Batch Updates


Batch Details

Batch Steps

Batch Activities

Step Resources

Now think that receipt was made erroneously to 20 instead of 200, so correct +180 for the receipt

M) Correction of the Receipt

Navigation: Inventory Super User (Process Operations) >Transactions>Receiving>Corrections

1. Navigate the Corrections window, Find Corrections window opens


3. Click Find, Receiving Corrections window opens

4. Enter the quantity 180 in the Receiving line

5, save the record, close the window

6. Again open the Corrections window, enter the receipt number, click find

7. Select the line (Transaction Type –Deliver), enter the quantity 180

8. Save the record

N) Check the View receiving transactions

Please follow the section 4.7.1 –subsection J to view the receipt details

O) Resource Transactions Manager


P) Check for Batch Updates


Batch Details

Batch Steps

Activities

Step Resources

Summary

We recommend you to use this document as a guide to understand the Outside Processing –Operation /

Batch. Some of the functionalities like Changes in forms as part of Outside Process Manufacturing,

System Setup, Creation of Recipe, Creation of Automatic Requisitions and Synchronization of batch and

Purchase Orders

This document also covers functional setup and transactional information for functional users / end users

who users the EBS application and given data is as per current design till December 2014, any

changes for the current design after this date may require changes accordingly in this also and no

technical information is given.

Oracle Process Manufacturing –Outside Process Manufacturing Step/ Operation

December 2014.

Author: Tummala Ramarao

Oracle Corporation

World Headquarters

500 Oracle Parkway

Redwood Shores, CA 94065

U.S.A.

Worldwide Inquiries:

Phone: +1.650.506.7000

Fax: +1.650.506.7200

oracle.com

Author contact

(0)+91 40 66055157

(M)+91 9949987090

Website: oracle.com

Copyright © 2014, Oracle. All rights reserved.

GME -Outside Process Manufacturing

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