Cost Management Overview of Cost Management Oracle Cost Management is a full absorption, perpetual cost system for purchasing,

inventory, work in process, and order entry transactions. Cost Management supports multiple cost elements, costed transactions, activitybased costing, comprehensive valuation and variance reporting, and thorough integration with Oracle Financials. Cost Management automatically costs and values all inventory, work in process, and purchasing transactions. This means that inventory and work in process costs are uptodate and inventory value matches the cumulative total of accounting transactions. Cost Management provides flexible cost setup features, including multiple cost elements and unlimited subelements, unlimited resources and overheads, and unlimited activities. For example, you can use one or more of the following cost elements: material, material overhead, resource, outside processing, and overhead. Subelements enable you to analyze costs in greater detail. For example, you can have multiple material overhead subelements such as purchasing, material handling, freight, duty, and so on. This enables you to accurately define and maintain costs and associate them with items. Cost Management provides flexible account setup including accounts by organization, sub inventory, and work in process accounting class so that you can distribute costs to the proper expense accounts and capture valuation in the proper asset accounts. Cost Management provides comprehensive valuation and variance reporting. Perpetual inventory and work in process balances are maintained online. Multiple variances are supported: purchase price, standard cost, cycle count, physical inventory, and work in process usage and work in process efficiency. Cost Management supports flexible periodbased accounting that enables you to transact in more than one open period at the same time. You can reconcile and analyze one open period while conducting business in a subsequent period. Further, you can transfer summary or detail account activity to Oracle General Ledger and close a period at any time. COST UPDATE Navigation:- Inventory, Vision Operations(USA)ItemsMaster Items Step1- Create Item IR Item 4 , with Purchased Item as template , in Inventory, Vision Operations(USA).

Navigation:- copy item

After click on Apply ,the message displayed that Template Implemented

Click on Done

Step2 - Mark Item as Internal Order Enabled.

Click on save.

Step 3 - Assign Item to M1 and M2 Inventory Orgs.

Step 4- Define Cost for Item Navigation >Costs >Item Costs Enter the Item value and Select cost Types as Pending. Save the task.

Click on Costs. Enter the Cost Element ,Sub-Element, Basis and Rate Or Amount field.

Click on Save.

Step 5 - Update the cost Navigation:CostsUpdate Standard CostsUpdate Cost Run the Request as Update Standard Costs with mandetary P

Click on Ok and Submit request.

Now you can check the item cost type.

CLOSE DISCRETE JOBS Navigation:-Order Management Super User,Vision Operations(USA)DiscreteClose Discrete Jobs(SRS). Submit the request as Close Discrete Jobs with following parameter. Class type, From class, To class, From job, To job and click on OK

Click on submit. View the output You can see in output the status is closed.

INVENTORY CLOSE

Navigation :-Inventory,Vision Operations(USA)Accounting Close CyclesInventory Accounting Period. Find only Open status Period.

Click on Pending to view the pending transaction. Ensure no pending transactions that require resolution are open.

Click on Change Status

Select new status Closed. Click on OK

Now the status is closed.

Concurrent program is submitted ,once it is completed NORMAL, Navigate again to check the inventory period status changed from OPEN to CLOSED.