OPM Candidate Evaluations

CANDIDATE EVALUATIONOracle Process Manufacturing

Error: Reference source not found

ContentsInventory........................................................................................................1

Items........................................................................................................1Lots...........................................................................................................2Inter-Org Transfers..................................................................................2

Cost Management..........................................................................................4Generic Costing Questions......................................................................4Standard Costing.....................................................................................5Actual Costing..........................................................................................5Lot Costing...............................................................................................6

OPM Financials.............................................................................................11Period Close...........................................................................................11Cost Update...........................................................................................11Lot Cost Process.....................................................................................12OPM Acctg Pre-Processor.......................................................................14Create Accounting.................................................................................15

Subledger Accounting.................................................................................19SLA Setups.............................................................................................19SLA and Create Accounting...................................................................19

Process Execution........................................................................................24Critical Requirements............................................................................24Current Benchmark Activities................................................................24Current Bottlenecks...............................................................................24

Product Development..................................................................................25Formulator.............................................................................................25

Quality Management...................................................................................28Critical Requirements............................................................................28Current Benchmark Activities................................................................28Current Bottlenecks...............................................................................28

Process Planning..........................................................................................29Critical Requirements............................................................................29Current Benchmark Activities................................................................29Current Bottlenecks...............................................................................29

Purchasing...................................................................................................30Internal Requisitions..............................................................................30Current Benchmark Activities................................................................31Current Bottlenecks...............................................................................31

Applications Technology.............................................................................32Architecture...........................................................................................32Personalizations.....................................................................................32

Error: Reference source not foundFile Ref: document.doc (v. Error: Reference source not found )

Company Confidential - For internal use only

Subledger Accounting 19 of !Undefined Bookmark, SEC1

Doc Ref: Error: Reference source not foundError: Reference source not found


System Administration..........................................................................32Error Handling.............................................................................................33

Critical Requirements............................................................................33Current Benchmark Activities................................................................33Current Bottlenecks...............................................................................33

Case Studies / General Questions...............................................................34Critical Requirements............................................................................34Current Benchmark Activities................................................................34Current Bottlenecks...............................................................................34






InventoryThis component describes each of the high-level business functions and the processes that it performs.

Items

1. What is an Item?

Ans: It’s a Commodity that you buy, sell, Manufacture.

2. What is an Expense Item? What is the Difference between Expense Item and an Service Item?Ans: Expense Item: Anything you make, purchase, or sell including

components, subassemblies, finished products, or supplies and that does not carry

a cost. Alsoknown as a non-asset item. Services are items that you define in the

itemmaster. They include the coverage terms that are given or sold to a customer. In the Item Master you don’t have to select as in Inventory Item. But in OrdermanagementTab you have select as Invoicable.

3. How do you tell that an item is an expense item or asset item?

Ans: Navigate to the Organization Items form: Inventory->Items->Organization Items. Query up the item in question. Change to the “Costing” alternative region. The value of the “Inventory Asset Value” flag determines this. If checked, the item is an asset item.

4. Once an Item is assigned to an Organization, is it possible to remove this association at a later Time?Ans: If you have assigned an item to an organization, it can only be deleted from that organization it the Item is NOT transacted. If it has been transacted you cannot delete from that organization instead you can inactivate that item, (Status Update).

5. How do you setup Unit of Measure for an item? And How do I Change an Item’s UOM

Ans: When transacting an item, it will always default to the defined Primary Unit of Measure, so if you need to use another UOM, you must select it from the List of Values when you transact it. This implies that you want the Primary Unit of Measure to be that which is used most often and which is likely to be the smallest unit of that type of item. Once you have set the primary UOM for an item, it CANNOT be changed. You CANNOT change the UOM for an item once the UOM is assigned to the item. The suggested solution is as follows: If the item has not been transacted you can delete the item and then re-add it with the correct UOM. If the item has been transacted and has no outstanding orders, purchase orders or WIP jobs you can do the following if approved by your management.






Rename the existing item ’123′ to ’123-Bad UOM’ and save the item. Any prior history for item ’123′ will now be associated with item ’123-Bad UOM’. Add a new item ’123′ with the correct UOM.

6. Is there a way to create custom item attributes?Ans: . No but you can create and define the descriptive flexfield for this form. This will allows you to associate additional data with an item such as an attribute

7. Can you change the costing enabled and inventory asset flags on an item that has already been transacted against even if there is no on-hand quantities for the item?Ans: Yes, you can change the flags. If you are changing the flags from checked to unchecked you will receive a warning that the associated cost records will be deleted alerting you that the Cost of Goods will not be calculated any longer for transactions of this item. In effect what you are doing is changing the item from an asset item to an expense item. If you are changing the flags from being unchecked to checked then a database trigger will fire and cause cost records to be added for this item. There is no warning that is given.

Lots

1. What is a Lot? Ans: A lot can represent a quantity of an item that shares the same specifications, one or more receipts from the same vendor, or whatever you choose. A lot refers to a quantity of material which is stored together and which shares the same characteristics. These characteristics (such as grade or expiration date) are referred to as lot attributes. Quantities of lot-controlled items must always be received into a lot and all subsequent transactions of this material must include a lot number. Lot Genealogy in Oracle Inventory provides a complete picture of lot composition and transaction history, from initial receipt, through warehouse transactions to customer shipment.

2. What is a Child Lot? Ans: A child lot is a subdivision of a lot that you can use if you produce a lot over a period of time, but still want to group the material as a single lot. Using a child lot maintains the integrity of the lot, but enables you to consume it in manageable pieces.

Inter-Org Transfers

1. Explain about Direct Inter-Org Transfers and Intransit Inventory. And What are the Pre-Requisite Setups.

Ans:

Pre-Reqs:

Define an inventory item that is common to both organizationsError: Reference source not foundFile Ref: document.doc (v. Error: Reference source not found )





Set up inter-organization relationships and their corresponding accounts

Shipping Networks, Shipping Network window to define accounting information and the relationships that exist between shipping and destination organizations.

Direct Inter-Org Transfers: You can transfer item A from organization X to organization Y, even though item A is under lot control only in organization X (you can specify the lot numbers for item A in organization X during the transfer transaction). However, you cannot transfer item B from organization X to organization Y if item B is under lot control only in organization Y (you cannot specify lot numbers for item B in the destination organization because you are performing a direct transfer). Intransit InvTransfers: You usually transfer material to intransit inventory when transportation time is significant. When you perform the transfer transaction, you do not need to specify the delivery location. You only need to enter the subinventory you are shipping from, a shipment number, the freight information, and, depending on the inter-organization transfer charge that applies between the organizations, a percentage of the ransaction value or a discrete amount that Oracle Inventory uses to compute transfer charges






Cost Management

Generic Costing Questions1. What is Cost Component Class?

Ans: The unit cost of an item is usually broken down into several buckets that can be attributed to the various sources that form the basis of the cost, for detailed tracking and analysis purposes. Cost Component Classes are used to identify the individual buckets or component costs that make up the total cost, for example, direct material costs, freight costs, labor costs, production or conversion costs and so on.

2. Give some Cost Elements/Componets that you used in past?Ans:

Raw Materialso Direct Raw Materialo Indirect Raw Material

Laboro Direct Laboro Indirect Labor

Indirect Expenses/Overheadso Indirect Materialo Indirect Labor

3. What is Direct Labor and Indirect Labor.

Direct: Labor involved in production rather than administration, maintenance, and other support services.Indirect: Resources who do not directly produce goods or services, but who make their production possible or more efficient. Indirect labor costs are not readily identifiable with a specific task or work order. They are termed indirect costs and are charged to overhead accounts.

4. What is the use of Cost Update?

Ans: The Cost Update process freezes recipes, formulas, routings, and perations.

5. What is the Use of OPM Accounting Pre-Processor?Ans: OPM Financials includes OPM Accounting Preprocessor that lets you create events in SLA tables. SLA identifies eligible events and uses these events to extract data using OPM supplied extract program into extract tables.

6. List some of the Variance Types available in OPM Costing.

Ans: Scale to Plan: Scale the costing formula to planned quantity of the primary product in the batch and compare with the actual batch. The accounting process uses this method to calculate variances. This is the existing method. Scale to Actual: Scale the costing formula to actual quantity of the primary product in the batch and compare with the actual batch. This






method is similar to the Scale to Plan except for the costing formula scaling. The costing formula is scaled to the actual output of the primary product in the batch. As a result, there are no yield or usage variances for the primary product.

Standard Costing

1. What is Standard Costing? Ans: OPM calculates product costs based on formula, routings, recipe details, and other indirect costs such as standard overheads. The item costs are established for a specific costing period and remain the same during the period. The standards can be established based on estimates derived from historical information or actual costs calculated in prior costing periods or years

2. Explain the Steps involved in Standard Cost Period End Process.

Actual Costing

1. What is Actual Costing? Ans: OPM captures the actual costs from business transactions. Costs of raw materials are captured based on the raw material purchase order receipts and or invoices. Costs of products are captured based






on the actual quantities of the raw materials consumed and the resource usage or conversion cost recorded in the production batch. A transaction history is maintained for reference.

2. What are Actual Cost Calculation Methods?

Ans:

PWAC – Period Weighted Average Cost

PMAC – Period Moving Average Cost

PPAC – Perpetual Weighted Average Cost

3. Explain the Steps involved in Standard Cost Period End Process.






Lot Costing

1. What is Lot Costing? Ans: Lot costing, also referred to as lot-based costing is Specific Identification type costing. Every Lot has a unique cost associated with it and that lot retains this cost until the entire lot is consumed. The Lot Costs are computed on perpetual basis unlike the existing the Periodic Actual Costing.

2. How is it different from Standard or Actual Cost?

Ans: Lot Costing is a Perpetula form of costin unlike Standard or Actual costs that are periodic in nature. The lot costs do not have cost calendar and period. Once the cost of a lot is identified, it remains the cost of the lot until the entire lot is consumed or another receipt or batch yield is created for the same lot. When a lot is received or yielded from a batch again, the previous cost of the lot and the current onhand quantity of the lot is averaged with the new receipt or batch yield quantity and cost to arrive at the new cost of the lot

3. If costs are held at the lot level, then how is sublot level costing handled? Ans: With lot costing you also get the sublot level costing. A sublot is essentially a lot and a lot and sublot combination is internally






identified by a unique lot ID. If an item is sublot controlled and that item is also lot costed, then each sublot of that item has a cost associated with it and hence the cost is held at the sublot level.

4. If a lot cost is to be held against the lot until it is consumed, then how are costs carried over from one cost period to another?

Ans: The lot cost is identified against a lot and is calculated and stored on a perpetual basis. There is no need for a cost calendar or a cost period. Once a lot cost is calculated and stored, it is used for all consumption transactions for that lot.

5. Does lot costing require a cost calendar and periods?

Ans: No. Lot costs are calculated and stored on a perpetual basis, a cost calendar or period is not required.

6. Can lot costs coexist with standard and actual costs?

Ans: Yes. Lot costs can coexist with standard and actual costs.

7. Can standard cost be entered for an item or lot?

Ans: No. Lot costs are calculated as actual costs, hence, a standard cost cannot be entered against a lot. A lot is created upon receipt or production yield, and the lot is not known earlier, you cannot create a standard cost against it. Standard costs are created using formulas and routings and these entities cannot be created for specific lots.

8. If there are several lot controlled items, then do they all need to be costed at the lot level?

Ans: No. OPM lot costing allows a flexible setup. A subset of lot controlled items in your item master can be identified as costed on a lot basis. The cost of all the other items is derived using an alternate cost method that is identified on the Lot Actual Cost Method window.

9. Why should an alternate cost method be specified?

Ans: Costs of only a subset of the lot controlled items can be tracked at the lot level. For other lot controlled items and nonlot controlled items, costs need not be tracked in such a detail. To retrieve cost for nonlot costed items used in cost calculations, an alternate cost method is required. This cost method is defined as the alternate cost method when setting up a lot cost method

10.How often should the Lot Cost process be run? Does it run automatically after completion of every transaction?

Ans: Run the Lot Actual Cost process as often as required. It does not run automatically after completion of every inventory transaction. It is a concurrent program and can be scheduled to run at periodic intervals.

11.What if the lot costs are incorrect? Can the Lot Cost process be run again for the same set of receipts and batches?






Ans: The Lot Actual Cost process can be run in two modes, the preliminary or final mode. In the preliminary mode, costs are calculated the same but the inventory transactions are not marked as being lot costed. In the Final mode, the inventory transactions that are used in cost calculations are marked as lot costed. Refer to "Running Lot Actual Cost Process" for more details.

12.What transactions are considered during the lot cost calculation?

Ans: The following transactions affect the cost of a lot and the onhand balance. If the lot cost method is used for valuation, then these transactions are valued using the purchase order price or batch lot cost or the appropriate incoming cost by the Subledger Update process.

Purchase Order Receipts (at PO Price) Production Batches (at the cost of the batch) Incoming Inventory Transfers and Inventory Movements (at

cost of the source warehouse) Incoming Internal Orders (at the cost of the source warehouse)

13.Can the lot actual cost be adjusted similar to Actual?

Ans: Yes, use the Lot Cost Adjustment functionality to adjust the costs.

14.Why the Lot Actual Cost process cannot be run for a specific item or item cost class in the final mode?

Ans: If the Lot Actual Cost process is run in the final mode for a specific item or item cost class, then the lot cost of some of the ingredients that contribute to the cost of a product item may not have been finalized. If those lot costs change, then the product cost cannot be traced back to those lot costs. The specific item or item cost class option is disabled when the Lot Actual Cost process is run in the final mode.

15.If both the item cost class and item are entered while submitting the Lot Actual Cost process in test mode then which criteria is used?

Ans: If an item cost class and an item are both entered while submitting the process, then the item overrides the item cost class and the process runs only for the specified item.

16.What reports are available for lot costs?

Ans: The following reports are available for lot costs: The Item Lot Cost Detail report lists the cost details at the

component level for an item or lot. Enter a range of items, lots, and sublots as parameters when submitting the report.

The Lot Cost History report lists the history for a given item or lot. It displays all the transactions that contributed either to the cost and or affected the onhand balance.

17.What happens when an item is received in to the existing lot? What happens when a product lot is yielded into an existing lot?






Ans: It is possible to receive an item any number of times into the same lot. Same is true for product yields. The lot cost is averaged between the new receipt or new product yield with the existing onhand balance and the existing cost

18.If the lot cost changes because transaction were received or yielded into the same lot, then is the old cost information lost?

Ans: No. Every time a cost of an existing lot changes, a new row is inserted into the lot costs table and this new cost becomes the current valid lot cost. The old or previous cost rows exist in the table and are used for valuing the transactions that happened before the new receipt or product yield. View the complete audit trail or history of lot cost changes using the Lot Cost Details window or the Lot Cost History report.

19.The error, Unable to convert ingredient/product/by-product quantity to Step Quantity UOM. Lot cannot be costed, displays for UOM conversions. What is the problem?

Ans: This might happen if a batch is run with multiple steps that have step dependencies and ingredients are added at various steps and or products yielded from one or more steps. The Lot Actual Cost process uses the step dependencies and material-step associations, if any, defined in OPM Process Execution for various batch steps to arrive at the distribution of material at any given step, and hence the costs of materials and resources are used as well as materials yielded in that step. To correctly determine the various quantities and the proportions at each step, the quantities are converted to the common step quantity unit of measure. If conversions to the step quantity unit of measures are not available, then this error displays.

20.The error, Unable to convert item to GMD: Yield Type standard UOM, displays. What is the problem?

Ans: If there is no routing in the batch, then this error displays. When there is no routing associated with a batch, then the various items ingredients, products, or byproducts are converted to the GMD: Yield Type standard UOM to accurately determine the costs and the proportions that apply to each product. If that conversion is not available, then the error displays.

21.Why can the Lot Actual Cost process find the cost of the lot in the source warehouse when it is transferred through an internal order?

Ans: When you transfer materials through an internal order, ensure that the receiving lots match the lots shipped in Oralce Order Management. If the receiving lot does not match the lot that was shipped, then the cost of the received lot in the source (shipping) warehouse is not available. In such cases, an error displays. Or, if the source warehouse has a cost for the received lot even though it was never transferred, then an incorrect cost is used in the cost calculations.

22.If lot costing is used, then can the standard or actual cost be used for inventory valuation?






Ans: Yes, you can continue to use standard or actual cost for your inventory valuation. You can use lot costs as a simulation cost method to track accurate lot level costs and also use it for reporting and analysis purposes.

23.Can the lot cost method be used for inventory valuation?

Ans: Yes. The Subledger Update process works transparently whether the fiscal cost method is Standard, Actual, or Lot Actual Cost method.

24.Explain the Lot Cost Period End Process Flow?






OPM Financials

Period Close1. What is Period Close?

Closing is the process of accounting for all transactions at the end of each period so all supporting information is transferred to the General Ledger. Subledgers cannot be closed if the required transactions in that period are not processed. Subledgers are E-Business Applications that post (transfer accounting records) to the General Ledger: for example, Payables, Receivables, Inventory, etc.

Dependencies:

Cost Update

Cost Update program has to be run in preliminary / draft mode. Running cost update, populates two tables GL_ITEM_CST and GL_ITEM_DTL. GL_ITEM_CST stores accounting cost at organization, period, item level and GL_ITEM_DTL further stores drilled down data broken into its cost components and analysis codes for each accounting cost row in GL_ITEM_CST. Sub ledger accounting picks the accounting cost from these two tables for further processing depending on configurations. GL_ITEM_CST is the table from which IO requisitions, simulator, least cost formula selection in batches pick the cost for further decisions and/or processing

It is required to run cost update process for alternate cost (actual cost process) so that cost will be populated in table gl_item_gst for non lot control item.






Lot Cost Process

1. What is Lot Cost Process?

The Lot Cost process calculates and stores the lot level costs of items. The process retrieves all the transactions that are applicable and processes them in the order in which the items were replenished or consumed.

It is run for a legal entity and lot cost type. Additional parameters can be specified.

Tables used by Lot Cost Process

gmf_material_lot_cost_txns.gmf_lot_cost_details.gmf_lot_costs.

How it works: Lot costing, also referred to as lot-based costing is a Specific Identification type costing. Oracle Process Manufacturing lets you maintain standard and actual item costs by inventory organization

Lot Cost Process Screen:

Final Run? Indicate whether the process should run in final mode (Yes) or not (No) in Final Run . The default value is No. If the mode is final, then after cost calculations, all inventory transactions used in cost calculations are marked as lot costed. You cannot change lot costs once they are processed in final mode. Set Final Run to no to run the process in the test mode and verify costs. Once costs are correct, run the Lot Cost process in final mode.

2. What are the fundamental steps to be checked if initial Lot Cost Process is not working?






In any initial Lot cost setup is unable to cost the Lot Cost Items, one can check the following

1) Item is Lot controlled or not?( Inventory Super User > Master Items > (Find Item) > Inventory Tab > Lot Control)

2) Pertinent Item or Cost Category is listed in Lot Cost Items ( OPM Financials > Setup > Lot costs > Lot Cost Items )

3) Check whether Process Cost Class, category in Default Category Sets ? (Inventory Super User > Setup > Items > Categories > Default Category Sets).

4) File versions of GMFPLCRB.pls should be at latest code level.

3. How is a Lot cost process orders transactions? Lot cost process orders transactions by transaction date:

If a product is yielded prior to ingredient issue, the lot becomes uncostable.

If a lot has two transactions e.g. PO Receipt and WIP Issue, The transaction date of the PO Receipt MUST be before the WIP Issue transaction date otherwise the lot becomes uncostable.

4. What is the Alternate cost type?

Within any Formula, you can have a mixture of Items that are and are not Lot-costed.When you set up a Cost Type for use by Lot Costing, you also specify which Cost Method is to be used by the Lot Cost calculation process when an Item within the Formula is either not Lot-controlled at all, or is Lot-controlled but not Lot-costed. To retrieve cost for non lot control, an alternate cost method is used. You can either use standard or actual cost method.

5. Lot Cost Process errors with - ERROR: Unable to locate cost header for organization: <Org Code>, item ID: <Inventory_Item_ID>, lot Number: <Lot No > How is the issue can be Handled?

Cause :This error indicates that the Lot Costing transaction cannot arrive at a cost for the Item as the Item transactions do not have any costs associated. In this case the Item Lot did not have any cost when it was shipped and thus the Lot Costing process could not arrive at any cost for it. The 'Lot Cost Adjustment' was done after the Item / Lot was shipped.)Solution:Provide a cost to the Item / Lot via 'Actual Cost Adjustment' so that the transactions that are considered by the Lot Cost process have a lot cost associated.

6. After running the Lot Cost processor you find that NO cost has been calculated for these Item / Lots. How is the issue seen?

You have taken some lot enabled items into stock using "miscellaneous receipt”, after running lot cost process you find that no Cost has been calculated for this item lot. Cause:Miscellaneous receipts are not considered as a source of Receipts for the purpose of Lot cost process.






Solution:Miscellaneous receipt will be valued at the existing Lot Cost, so if there is no lot cost for the Item /Lot / Organization combination at the time of miscellaneous receipt, then the lot cost will be zero.If the Lot numbers which you have used to bring the stock through Miscellaneous Receipt do not have any other receipts like PO Receipts or Production Receipt then you have to do a Lot Cost Adjustment for these Lot Numbers.1. If you do the Lot Cost Adjustment prior to the date and time of Miscellaneous Receipt, then the Following should be the accounting entries:For Lot cost Adjustment (LADJ) INV Debit 0.00 IRV Credit 0.00For Miscellaneous Receipt INV Debit (Qty X Lot cost) IVA Credit (Qty X Lot cost)

2.If you do the Lot Cost Adjustment immediately after the date and time of Miscellaneous Receipt, the following are the accounting entries:For Miscellaneous Receipt INV Debit 0.00 IVA Credit 0.00For Lot cost Adjustment (LADJ) INV Debit (Qty X Lot cost) IRV Credit (Qty X Lot cost)

OPM Acctg Pre-Processor

OPM Financials includes OPM Accounting Preprocessor that lets you create events in SLA tables. SLA identifies eligible events and uses these events to extract data using OPM supplied extract program into extract tables

Note: It is recommended that where volume of data is very high, the preprocessor may be run separately for each source. OPM Accounting Preprocessor populates two main tables namely GMF_XLA_EXTRACT_HEADERS and GMF_XLA_EXTRACT_LINES among others. Create AccountingProgram reads these two tables for creating the sub ledger journals.

The OPM Accounting Pre-processor logs error messages similar to the ones below.

The following error message for by-product items, Normally by-products will not have a cost. In a production batch there is no option to give the cost allocation for a by-product.

"No cost for Item:XXXXX, Org:%%%, Cost Org:%%%, Date:XX-XXX-XXXX"

Cause

The profile option - "GMF: Subledger Update -- Initial Load of Cost Data" was set to '1'.






The Item, for which the OPM Pre-processor errored out suggesting that there was no cost for it, was Shipped on a Sales Order in a period which was prior to last period.

With the profile option - GMF: Subledger Update -- Initial Load of Cost Data" - set as '1', only the Cost data from the current and last periods are loaded into memory for processing.

Thus, since the Item was shipped in a period that was prior to the last period, the Item Cost was not loaded into memory and was thus not available to be processed by the OPM Pre-processor.

SolutionSet the profile option - "GMF: Subledger Update -- Initial Load of Cost Data" to 0.

When the profile option - "GMF: Subledger Update -- Initial Load of Cost Data" - is set to '0', the costs are retrieved from the database and are thus available for processing by the OPM Pre-processor.

With this setting of this profile option, though, there could be performance implications as the data is retrieved from memory as required and not loaded upfront into the memory.

2. The following error message for Resource cost but resource cost may be allocated through GL Expense Allocation and not through batch routing steps.

"No resource cost for Org: %%%, Resource: XXXXXXXXX, Date: XX-XXX-XXXX, Cost type: %%%"

How can these unwanted error messages be avoided given the fact that they have no impact on the item cost?

1. By-products item are inventory item. As per design these error messages cannot be removed when there is no Item Costs exist. Hence to avoid these error messages, the user has to a assign zero cost for by-products items through average cost adjustment. 1a. Identify list of all by-product items using a script similar to the one below.

SELECT segment1 by_product_item, mp.organization_codeFROM fm_matl_dtl dtl, mtl_system_items_b msi, mtl_parameters mpWHERE dtl.line_type = 2AND dtl.inventory_item_id = msi.inventory_item_idAND dtl.organization_id = msi.organization_idAND mp.organization_id = msi.organization_id;

1b. Do an Average Cost Adjustment for a zero value for the items provided by the query.

2. When the Pre-Processor does not find cost for resources, it will give warning message. To avoid these error message, Users has to enter zero value for resource cost in the Resource cost Form.






What Transaction Types Are Supported/Read by the OPM Preprocessor?

Create Accounting

What is Create accounting?

Create Accounting process is run to create accounting journal entries on the transaction data. You must run the Transfer Journal Entries to GL program to transfer accounting entries to GL if the option to transfer them to GL is set to No in the Create Accounting program.

Tables:

xla_events ,xla_event_types_b, xla_event_classes_tl, xla_ae_headers, gl_ledgers, xla_lookups

Name Some tables that are affected by Create Accounting

mtl_material_transactionsgmf_rcv_accounting_txnsgmf_invoice_distributionsgmf_incoming_material_layersgme_resource_txnsgme_batch_headergmf_lot_cost_adjustmentsgmf_period_balancescm_adjs_dtlgl_aloc_dtlgmf_transaction_valuationxla_distribution_linksxla_ae_linesxla_ae_segment_valuesxla_ae_headersgmf_xla_extract_linesgmf_xla_extract_headersRun the Create Accounting-Cost Management ProgramRun the program up to the period end date before closing the period. Since a period, once closed, cannot be re-opened, running this process prior to closing the period facilitates validating the interface transactions. Any adjustments to the period can be made via new inventory transactions as required.

If the Create Accounting Program is run in Final Mode without transferring to GL






then run the Transfer Journal Entries to GL Cost Management which transfers the accounting to GL.Attention: The Transfer Journal Entries to GL Cost Management Program transfers the accounting details for all the inventory organizations within a Ledger. If this step was by-passed, and the period was closed, a GL Transfer would automatically be initiated. But no adjustments to that period can then be entered, since transactions cannot be posted to a closed period, and a closed period cannot be re-opened.View accounting, journal entries associated with transactions, and accounting events by accessing the Sub ledger Accounting user interface from the View Transactions window and various statuses (e.g. Final Accounted, Draft Accounted, Errored can be selected).

If Order Management is used, for the order-shipments which have been invoiced in Receivables (AR), revenue recognition has been processed in AR, and the accounting entries between Deferred COGS account and COGS account must be generated in INV-CST. For this purpose you need to run these 2 concurrent programs:

a) Collect Revenue Recognition information

b) Generate COGS Recognition event

What is Detailed Subledger Report?

The Detailed Subledger report is run to print accounting transactions and event classes for an organization as specified in the parameters. You must run the OPM Accounting Pre-Processor for an organization and use the reference number generated to run the Detailed Subledger report.

What is Cost Rollup?

Run the cost rollup at period-end time to consolidate standard costs of raw materials into product costs. The rollup encompasses component costs that have changed, and also new items, formulas, products, routings, and overheads that were added and set up for costing.

Q1. "Currency Conversion Level" for reporting ledgers set to "subledger" level in the GL Ledger setup causes the SLA "Create Accounting" process to perform the work of evaluating each Account Code Combination multiple times.

Is it possible to tell the system that each Ledger uses an identical Chart of Accounts?

A1. No, the Multiple Ledgers concept (previously MRC) requires SLA to evaluate Account Code Combinations for each Ledger, since technically the accounting logic could be different for every Ledger.

For example, it is possible to set up an Account Derivation Rule (ADR) so that the Account Segment or Combination is based on the Ledger Category (Primary or Reporting)

Q2. When using Reporting Ledgers, after running Create Accounting it can be seen from the data in tables XLA_AE_HEADERS and XLA_AE_LINES that Create






Accounting has evaluated every transaction separately for each Reporting Ledger.

That is to say, with one primary ledger and four reporting ledgers details of each transaction will appear five times in these tables.

Shouldn't the Create Accounting to GL process use currency conversion to create journals in the reporting ledger instead of duplicating the transaction?

A2. This design is so that this data (in the alternate currency ledger) is available for use when it is to be displayed in Line Inquiries or Reports.

The argument is that deriving this data every time it is required could cause performance issues.

If your business need is to have Currency Converison Level set to 'Subledger' and you perceive that this is causing performance issues.

If you do not need to see the transaction data stored in the SLA tables then you can specify in the GL setup that calculation is to be done at journal / balance level.

Q3. Can you tell me how to change the settings back to having reporting currency entries created at the time of importing into GL?

A3. You can define your Reporting Ledger(s) in GL Accounting Setup Manager with Conversion Level set to Journal or Balance, but it is not possible to switch a Reporting Ledger from one Conversion Level to another.

You will need to create a new Reporting Ledger and transfer the account balances from the old to the new..

Having a Conversion Level of 'Subledger' means that journals are created in the SLA tables and then passed to GL.

If reporting ledger conversion is at Journal or Balance level, journals will be created at GL headers/lines and Gl Balances respectively, which should significantly reduce the amount of work being done by Create Accounting.






Subledger Accounting

SLA Setups

1. Explain the steps involved in setting up the SLA

Ans: a. Create a New Account Derivation Rule (ADR)b. Define Conditions for the ADRs Created in Step a.c. Create a New Journal Line Definition (JLD) for each Condtion

that defined in step b.i. Query the seeded JLD for Miscellaneous Transactions

event class for the Owner type “Oracle” to select the seeded JLDs

ii. Use ‘Copy Definition’ to create a new JLD for this event class. Enter the Transaction Chart of Accounts and Accounting Chart of Accounts along with name and description

iii. Replace the existing ADR associated in ‘Rule Name’ column for ‘Inventory Valuation’ Journal line type with the new ADR created in step a.

d. Create a new Applications Accounting Definition (AAD)i. Query the seeded AAD for OPM financials and Owner as

“Oracle” to view the seeded AADsii. Use ‘Copy’ to create a new AAD. Enter the name,

description, transaction and accounting chart of accounts.

iii. Associate the New JLD with the Miscellaneous Transactions event class and Validate the AAD.

iv. Once you have defined all the AADs, click on the Validate button to validate all the setups. Proceed further only if the “Validation Status” changes to Valid.

e. Associate the AAD with the Sub ledger Accounting Methodi. Query existing the Subledger Accounting Method (SLAM)

to view the existing setups ii. you can delete the existing SLAM defined or choose an

End Date for the existing SLAM. Now attach the new AAD that you defined in Step d.

f. Assign SLAM to the Ledger

Sub Ledger AccountingIn Release 12, Subledger Accounting (SLA) architecture was implemented, creating a common repository of all your accounting information to maintain a common link between General Ledger (GL) balances and underlying transactions automatically, for internal and external audit purposes, and for ease of drilldown.Create Accounting is the new process in Release 12 that creates the accounting in the subledger accounting tables and offers flexibility in how you generate your accounting. Accounting can be created immediately online or run as a process and can be generated 3 different ways:Draft: The transactions accounted in draft mode can be included on accounting reports but cannot be transferred to the General Ledger. This mode is for






informational purposes only allowing you to review the accounting entries via the output report or using the Subledger Accounting Inquiry screen prior to creating final entries.Final: The transactions that have been accounted in Final Mode are accounted but not yet transferred to General Ledger.When using Final mode, you have the option to transfer and post to General Ledger based on the settings of the "Transfer to General Ledger" and "Post in GL" parameters.Final Post: Transactions that have been accounted in Final Post are transferred to and posted in the General Ledger.What are the tables involved in the Transfer to GL and GL posting?Subledger Tables XLA_AE_HEADERS XLA_AE_LINES XLA_DISTRIBUTION_LINKS

Transfer Journal Entries to GL (XLAGLTRN) process takes the subledger journals and inserts records into the Interface Tables

Interface Tables GL_INTERFACE / XLA_GLT_<groupid>

Journal Import (GLLEZL) then reads from the interface table and creates records in the GL Tables

GL Tables GL_JE_BATCHES GL_JE_HEADERS GL_JE_LINES GL_IMPORT_REFERENCES

GL Posting process then posts to the GL_BALANCES table.

What are the different methods to transfer Subledger journals to GL?ONLINE MODE

GL Transfer can be spawned during Online Accounting using the "Final Post" option for a specific document (Example: AP Invoice and AR Transaction).






Example: Navigation in Payables: Invoices/Entry/Invoices: Action: Create Accounting/Final Post. This spawns the GL Transfer, the Journal Import, Data Manager and the GL Posting processes. This request transfers ALL the final accounted data for that document. This method of transfer uses the interface table GL_INTERFACE to move the journals to the general ledger.

BATCH MODE

GL Transfer can also be spawned by the Create Accounting concurrent request when submitted with the "Transfer to GL" parameter set to Y.Example: Navigation in Payables: Other/Request/Run: Create Accounting This spawns the journal import and the data manager processes. The GL Posting process is spawned if the Post to GL parameter is set to Yes when submitting the Create Accounting. This request transfers all the final accounting created by the Create Accounting request that spawned it. This method uses the interface table XLA_GLT_<groupid>.

CONCURRENT REQUEST

GL Transfer can be submitted in standalone mode using the concurrent request "Transfer Journal Entries to GL".Example: Navigation in Payables: Other/Request/Run: Transfer Journal Entries to GL This spawns the Journal Import and the Data Manager programs. This request transfers all the final accounting that exists for the given ledger and end date. This method uses the interface table XLA_GLT_<groupid>.What columns indicate the Transfer Status of accounting data in subledger?The XLA_AE_HEADERS table shows the transfer status of the accounting data, after successful transfer to the GL and Journal Import:XLA_AE_HEADERS.gl_transfer_status_code = Y XLA_AE_HEADERS.gl_transfer_date is not null XLA_AE_HEADERS.group_id is not nullWhat is the setup option that determines the level of detail in the accounting lines created for a specific transaction in XLA_AE_LINES?Each Journal Line Type (JLT) can be setup as required to result in either detailed or merged lines in XLA_AE_LINES.

Navigation: Accounting Setups : Subledger Accounting Setup : Accounting Methods Builder : Journal Entry Setups Form :"Define Journal Line Types" Field : "Merge Matching Lines"

The different options are as follows:

ALL - The matching lines in XLA_DISTRIBUTION_LINKS for the specific accounting header and specific journal line type (example: LIABILITY) are merged to create records in XLA_AE_LINES.

DR/CR - The matching lines in XLA_DISTRIBUTION_LINKS, for the specific accounting header and specific journal line type (example: LIABILITY) with debit side entries, are merged to create one debit entry in XLA_AE_LINES. The matching lines with credit side entries are merged to create one credit side entry in XLA_AE_LINES.






NO - Lines in XLA_DISTRIBUTION_LINKS for the specific accounting header and specific journal line type (example: LIABILITY) are not merged and copied into XLA_AE_LINES.

NOTE: This setup applies to merging lines within a specific transaction.

What is the setup option that determines if transfer to GL is in detail or summarised mode?

There are two variables that determine how the data is transferred to GL from the subledger tables XLA_AE_HEADERS and XLA_AE_LINES. These setups determine whether accounting data from across multiple transactions in the subledger will be merged or not merged while inserting into rows in the GL_JE_HEADERS and GL_JE_LINES tables.

a) Subledger Accounting Options

Navigation: Accounting Setups : Ledger Setup : Define : Accounting Setups Choose the ledger Click on "Update Accounting Options" Scroll to Subledger Accounting Options in the Primary Ledger section Click on Update Icon Click on Update Icon against the Application to be setup(Example: Payables)

Field: General Ledger Journal Entry Summarization

This can be set to ONE of the following:

Summarize by GL Period Summarize by GL Date No Summarization

This setup determines if the accounting header is summarized or not.

b) Journal Line TypesNavigation: Accounting Setups : Subledger Accounting Setup : Accounting Methods Builder : Journal Entry Setups Form :"Define Journal Line Types" Field: Transfer to GL This can be set to Summary or Detail

This setup determines if the accounting lines in XLA_AE_LINES are summarized during transfer to GL.

Note 1: Lines cannot be summarised if the headers are not summarised. If "General Ledger Journal Entry Summarization" is set to No Summarization, the "Transfer to GL" setup in the Journal Line Types are irrelevant. The lines and headers are not summarized in this scenario.

Note 2: Irrespective of transfer in Detail or Summary, there is always a one-to-one correspondence between the XLA_AE_LINES and GL_IMPORT_REFERENCES tables.

What are the different combinations of the two setup options that determine if transfer to GL is in summary or detail and the corresponding outcome?GL Journal Entry Summarization JLT -Transfer to GL Expected behavior






Summarize(By GL Date or Period)

Summary Summarized at both GL_JE_HEADERS and GL_JE_LINES

Summarize(By GL Date or Period)

Detail Summarized at GL_JE_HEADERS, detail GL_JE_LINES

No Summarization Detail Detailed at GL_JE_HEADERS and GL_JE_LINES

No Summarization Summary Detailed at GL_JE_HEADERS and GL_JE_LINES

Group by GL Period/GL Date Detail/Summary GL_JE_HEADERS within same journal category and GL Period/GL Date will be merged. GL_JE_LINES will be detailed and gl_sl_link_id populated.

Note: The "No Summarzation" option causes the level of detail in the GL to be the same as in the Subledger i.e. the same number of headers and lines.

What columns associate GL data back to the SLA data?Since there is always a one-to-one correspondence between XLA_AE_LINES and GL_IMPORT_REFERENCES, they are used to link GL and the subledgers.

GL_IMPORT_REFERENCES.gl_sl_link_id => XLA_AE_LINES.gl_sl_link_id GL_JE_BATCHES.group_id => XLA_AE_HEADERS.group_id

What is the default value for the Transfer to GL in the seeded journal line types (JLT)?

There is no specific default value across the application. Depending on the product, the JLTs may be seeded as Detail or Summary for the Transfer to GL option

If a customer's business requires a different setup than the default, can the seeded JLT be updated?

The seeded JLT cannot be updated. However, the seeded JLT can be copied and a new custom JLT can be created, where changes can be made on the custom JLT.






Process ExecutionThis component documents insights discovered during working sessions, and contains the following sections:

Critical Requirements Current Benchmark Activities Current Bottlenecks

Critical Requirements

Current Benchmark Activities

Current Bottlenecks






Product Development

Formulator

01.What is Formula?Formulas are lists of ingredients and products with their associated quantities and processing instructions. In some cases, you can refer to a formula as a process manufacturing parts list.

02.What is Routing?Routing composed of a series of Operations organized in Steps. A routing is a sequenced set of operations to perform to complete a production batch. The operations are presented in a series of steps that organize these operations into an orderly set of activities that have individual resources associated to them

03.What is Operaions?Operations composed of Activities containing Resources. An operation is an ordered set of activities that have to be completed for a predetermined step in a production batch. Resource requirements that are needed to perform these activities are usually specified. You build operations from activities that require resources.

04.Activities?

Activities are the basic tasks performed at your plant such as setup, mixing, cleanup, or cooling. Combine activities with resources such as blender, oven, labor, or utilities to define operations. Basic plant activities are identified by activity codes. These codes are then combined to define the sequence of activities that can make up an operation. You can associate a cost analysis code with each activity.

05.What is Recipe? Recipe linking the Routing and Formula together with Processing Instructions. Recipes standardize the structure of all information that describes production of one or more products. Recipes have:• Formulas that define the relationship of material resources, including products, ingredients, and byproducts.• Routings that define the relationships of nonmaterial resources, including labor and equipment operations with activities and their associated resource. Routings are optional.• Processing instructions that encompass the work instructions needed to produce the products.






06.What is a ByProduct? Name Some Byproduct Types:Byproducts differ from products in that you do not plan production to make byproducts, but they must be accounted for in the formula.• Rework if the material generated requires rework.• Sample if the material generated is used as a sample for quality inspection.• Waste if the material is a waste product.• Yield if the byproduct is material that is yielded for use in another process.

07.What is a Phantom?

Phantoms are intermediate formulas that are not manufactured as products. Phantoms are sometimes referred to as transient subassemblies. Phantom functionality is a fixed method of multibatch management. Once several batches are linked by a production order number and phantom type dependence, you can manage them as a single production event.

08.Is it possible to enter attachments linked to Formula Ingredients? What are the proper setups to do this?

The following setup needs to be done to enable Attachments on the ingredient lines -

Responsibility : Application Developer -> Attachments -> Attachment Functions

Type - FunctionName - GMDFRMED_FUser Name - Formula Details Edit FunctionClick on "Blocks"Select the block "DTL_INGREDS"Click on "Entities"Click on tab "Primary Key Fields"enter Key1 - DTL_INGREDS.FORMULALINE_ID Save the form






Next, on the Formula form, when on an Ingredient line, clicking on the Attachment icon allows one to enter an Attachment Text, file or Web Page.

09.How does OPM Formula Security work when you have chosen toimplement it at Responsibility level?

By saying that a Responsibility should be allowed access to Formulas,you are NOT saying "Only allow this Responsibility to update..."

What you are saying is "Allow any User who has been assigned thisResponsibility to update Formulas in this Organization, regardlessof which Responsibility they have selected when signing on".

To put it another way, by setting up a Security Profile giving a privilegeto a Responsibility you are giving that privilege to every ApplicationsUser who has been assigned access to that Responsibility.

A User accidentally ran the OPM Cost Update process with the 'Final' flag set before we had completed all the transactions and updates for the current Period.

We have been able to unfreeze the OPM Costing Period using scripts provided by Support so that we can now do additional transactions and Item Cost updates.

However we also want to make changes to some of the underlying Formulas, and we are finding that these have also changed to a 'Frozen' Status.

Is there a further script which we need to run in order to bring these Formulas back to a Status of 'Available for General Use'?

No, this update can be done using the Application front-end.

You can either use the single-record forms, or Mass Search & Replace.

Please note that to avoid error conditions you will need to change first the Recipe Validity Rules, then the Recipes, then the Formulas.

Also, you cannot go directly from Frozen to Approved For General Use.

There are two options. In the seeded setup you can change from 'Frozen' to 'On Hold', then from 'On Hold' to 'Approved For General Use'.

Alternatively, you use the 'Formulator > Setup > Status Codes' form and change the setup to allow the direct change.

If you do the latter you will need to undo this setup change immediately you are done with updating the Recipes and Formulas,






because this change should to be prevented for normal day-to-day processing.






Quality ManagementThis component documents insights discovered during working sessions, and contains the following sections:




Current Bottlenecks






Process PlanningThis component documents insights discovered during working sessions, and contains the following sections:




Current Bottlenecks






Purchasing

Internal Requisitions

1. Explain the Steps in Internal Requisition and Internal Sales Order.

Ans:

Item Setups

1. Create Items

Navigate to Inventory -> Items -> Master Items

2. Create a material cost in source org for the new item

Navigate to Inventory -> Costs -> Item Costs

3. This step is a continuation of step 2 to update the actual cost of the item

- Navigate to Inventory -> Costs -> Standard Cost Update -> Update Costs

4. This step is a continuation of steps 2 and 3 to verify that the material cost has been updated for the item.

Navigate to Inventory -> Costs -> Item Costs

5. Check the setup for the internal customer

- Navigate to Customers -> Standard

Shipping Network Setup

6. Verify setup for inter organization Shipping Network between M2 and M1

- Navigate to Inventory -> Setup -> Organizations -> Shipping Networks

7. Define Inter-Location Transit Times (optional for testflow)

- Go to Inventory -> Setup -> Organizations -> Inter-Location Transit Times

8. Make sure the Inventory Accounting Periods are open for Orgs

- Navigate to Inventory -> Accounting Close Cycle -> Inventory Accounting Periods

9. Do a miscellaneous receipt to create on-hand quantity for the item in M2.






- Navigate to Inventory -> Transactions -> Miscellaneous Transaction

Purchasing Setups

10. Verify the transaction type and order source (this is already done in Vision environment)

- Navigate to Purchasing -> Setup -> Organizations -> Purchasing Options

1. Create an internal requisition

- Navigate to Purchasing -> Requisitions -> Requisitions

2. Run the Create Internal Orders concurrent program.

-Navigate to Purchasing -> Reports -> Run

- Run the concurrent request Create Internal Orders

- Go to View -> Requests and verify that the concurrent has completed successfully

3. Run the Order Import process

- Switch responsibility to Order Management Super User,

- Go to Orders, Returns -> Import Orders -> Order Import Request

Submit the concurrent request

- Go to View -> Requests and verify the presence of Parent and Child requests, and that they have completed successfully

4. View the created internal sales order information

Navigate to Orders, Returns -> Order Organizer

5. Pick release the internal sales order

- Navigate to Shipping -> Release Sales Orders -> Release Sales Orders

6. Ship confirm the internal sales order

7. Verify the status of the internal sales order

8. Now that the item has been shipped out of the warehouse

Navigate to Purchasing -> Receipts -> Receipts







Current Bottlenecks






Applications TechnologyThis component documents insights discovered during working sessions, and contains the following

Architecture

Personalizations

System Administration






Error HandlingThis component documents insights discovered during working sessions, and contains the following sections:




Current Bottlenecks






Case Studies / General QuestionsThis component documents insights discovered during working sessions, and contains the following sections:




Current Bottlenecks





OPM Candidate Evaluations

Documents

Transcript of OPM Candidate Evaluations