HAND-PAC-Q A-汉德信息技术

InthisDocument

Purpose

QuestionsandAnswers

IsitpossibletosetupbothPACandperpetualcostingmethodforsameinventoryorganization?

IsitnecessarythattransactionshavetobecostedinperpetualcostingbeforethesetransactionsarePACcosted?

Perpetualcostmanagerisdown.

Allthetransactionsarestuckinperpetual.

IsitpossibletorunPAC?

Howaresub-inventorytransferswithinsameinventoryorganizationprocessed?

Howareinter-orgtransactionswithinsamecostgroupprocessed?

Howareinter-orgtransactionsacrosscostgroupsprocessed?

Howisexpenseaccount

forinterorgtxns(directorintransit)withinsamePACcostgroup?

Isitnecessarytocloseallinventoryorganizationperiods,beforeclosingPACperiod?

DonotPeriodicCostUpdateNewCostor%gechangethePACitemcostsofthecurrentonhandPACinventoryinthecurrentPACperiod?

HowtovalidatePeriodicCostUpdateLOV(listofvalues)whenupdatingperiodiccosts?

WhatisthedifferencebetweenPACandAverageCosting?

Howdoyoulinkresourcerates,departmentoverheads,outsideprocessingcostsforPAC?

InOrgCostGroup/CostTypeAssociationscreen,thereisanindicatorforMaterialReliefAlgorithm.

Canyouexplainthefunctionality?

InOrgCostGroup/CostTypeassociationscreen,thereisanoptiontoenterProcessUptoDate.

Canyouexplainthepurposeofthisfield?

HowdoesclosingInventoryAccountingperiodearly,impactPACandGLaccountingperiods?

Isthisfunctionalityavailabletoanycustomer?

HowisitverifiedthatthecustomerisaBrazilianCustomer?

WhatarethemajordifferenceswiththePeriodicCostingfunctionality?

WhatarethesetupsrequiredforavailingPAC?

WhatisthedifferencebetweenthesetupforPeriodicCostingandPeriodicAbsorptionCosting?

AnyAdditionalSetupHintsrelatedwithPeriodicCosting?

DoestheuserneedtoselectAccountingLibrarytousethePeriodicAbsorptionCosting?

HowisthePACcostcalculatedforInterorgTransactionsacrosscostgroups?

DoestheuserhaveanoptionofupdatingthePACcost?

WhatarethemajorprocessesinvolvedinworkingofPeriodicAbsorptionCosting,andwhatsisitsscope?

WhatistheCostGrouprunningsequenceforInter-OrganizationTransfers?

Whatdoestheinterorgcostprocessordoduringiterations,whataretheinternalprocesses?

WhatisTolerance?

Whetherassemblyrollupdoneorinterorgdone1st,foranitemifithasboth?

Aremiscellaneousissues,processedascostownedtransactionswhenthereisacostonit?

DoesPeriodicMovingAverageCost(PMAC)getinitializedto0whenitrunsoutnegativeduringPACprocessofcostownedtransactions?

WhatdoesLevelmean?

DothecalculationfortheMaterialOverheadCost,ResourceCostandOverheadCostisbrokenupforCurrentandPreviousLevels?

WherecanIseethefinalPACoftheitem?

DoesthePACitemcostwillbesameforallcostgroupswhenthetoleranceisachieved?

Wheredoyougettheinfowhetherthetoleranceisachievedornot?

WhatisexpectedintheoutputfileofthePeriodicAbsorptionCostProcessor?

WhatisthesignificanceofvariousrunoptionsinrunningthePACP?

CanweseethePAConcostelementbasis,andifyeswheredoyouseethePAConelementbasis?

DoweneedtoruntherollupcostprocessorincaseofWIPcompletionitems?

Atwhatlevelthecostisstored:LegalEntity/CostType/CostGroup/Period/Item?.Doesitgofurtherandstoresatcostelementorsubelementlevel?

WherecanIseemoredetailsaboutthealgorithmusedbythePeriodicAbsorptionCostProcessor?

WherecanIseedetailedexamples?

HowdoI

drilldown

GLJOURNALShavingsourceasPeriodicInventory?

WhiletransferringtoGLfromPeriodicAverageCosting(PAC):

LIMITATIONS/COMMONERRORSQUESTIONS

DoesthePeriodicAbsorptionCostProcessorcalculatethePACacrossmultipleLEinterorgtransfers,multipleSOB,multipleCurrency?

WheredowefindthebreakupofPeriodicCostoftheitem?

WhatwillhappenifthereisWIPcompletionforanassembleditemhavingBOMloop?

WhatarethecasesinwhichthePeriodicAbsorptionCostProcessorwillnotachievethetolerance?Andwhattheuserhastorectifytocheck?

CostType:ThereisascenariowheretherearemultipleCosttypesandoneCostGroup.Wehaveonetransaction,andoneparticularPACisopenfortheentireCT.Willthecostbereportedinallthecosttypes?

WhatdoesEligibleandQualifieditemmean?

References

APPLIESTO:

OracleSupplyChainGlobalization-Versionto12.1.3[Release11.5to12.1]

OracleCostManagement-Versionto12.2.5[Release11.5to12.2]

Informationinthisdocumentappliestoanyplatform.

SupplyChainGlobalization-Version:to12.x.x

CostManagement->PeriodicCosting->PeriodicCost->-PeriodicAcquisitionProcessor

CostManagement->PeriodicCosting->Reports->PeriodicAbsorptionCostProcessor

CostManagement->PeriodicCosting->PeriodicCost->PeriodicCostProcessor

CostManagement->PeriodicCosting->PeriodicCost->PeriodicCostDistributionProcessor

CostManagement->PeriodicCosting->Reports->PeriodicAbsorptionCostProcessor

***Checkedoncurrencyon27-JAN-2017****

PURPOSE

Toaidusersandsupportengineersinproblemresolution.

ThisdocumentprovidesacompiledlistofR11.5.10/R12frequentlyaskedquestionson

PeriodicAverageCost(PAC-IPAC)-PeriodicAbsorptionCostProcessor

QUESTIONSANDANSWERS

GENERALQUESTIONS

IsitpossibletosetupbothPACandperpetualcostingmethodforsameinventoryorganization?

Yes.

CreateaPACorganizationcostgroupforaninventoryorganization.

Defineperpetualcostingmethodforthatinventoryorganization.

RunPACprocessesfororganizationcostgrouptoobtainPACitemcostforthatinventoryorganization.

IsitnecessarythattransactionshavetobecostedinperpetualcostingbeforethesetransactionsarePACcosted?

PACmethodisindependentofperpetualcostingmethodStandard,Average,LIFO,andFIFO.

PACisontopofperpetualcostingmethodacrossmultipleinventoryorganizations.

Therefore,PACcanberunirrespectiveoftransactionsbeingcostedinperpetual.

Perpetualcostmanagerisdown.

Allthetransactionsarestuckinperpetual.

IsitpossibletorunPAC?

Yes.

YoucanrunPACevenifperpetualcostmanagerisdown.

PACmethodisindependentofperpetualcostingmethod.

PeriodicAcquisitionCostProcessorisexecuted.

However,AcquisitioncostisnotdisplayedinPeriodicItemCostScreen,untilPeriodicCostProcessorisrun.

Thisisalimitationincurrentfunctionality.

AcquisitionCostProcessorcomputesacquisitioncostforeachPOreceipt.

Itdonotsummarizeattheitemlevelforthecostgroup.

Therearenoreportsoruser-friendlyscreenstoviewtheacquisitioncostaloneafterperiodicacquisitioncostprocessorisexecuted.

Inaveragecostingorganization,miscellaneousreceiptsarecreatedwithoutanyuser-definedcostfromthemiscellaneoustransactionscreen.

InPAC,allthesemiscellaneousreceiptsareprocessedascostderivedtransactioninsteadofcostownedreceipts.

InPAC,costownedtransactionsarethetransactionshavingitsowncostirrespectiveofwhetheritisareceiptorissuetransaction.

Costderivedtransactionsarethetransactions,whichtakesthepre-calculatedpacitemcost.

Costderivedtransactions;derivethecostfromthecomputedpacitemcost,calculatedfromallthecostownedtransactions.Therefore,miscellaneousreceiptswithoutanyuser-definedcostwereprocessedascostderivedtransactions,eventhoughtheyarereceipts.

Similarly,miscellaneousissueswithuser-definedcostareprocessedascostownedtransactions.

Howaresub-inventorytransferswithinsameinventoryorganizationprocessed?

Subinventorytransfersareprocessedascostderivedtransactions.

Howareinter-orgtransactionswithinsamecostgroupprocessed?

Inter-orgtransactionswithinsamecostgroupareprocessedascostderivedtransactions.

InIPACorPACR12,duetoFOBShipment,receivingcostgroupownsthegood

themomenttheinventoryitemisshippedfromtheshippingcostgroup.

Shippingcostgroupwillhavereductioninonhandinventoryandincreases

intransitinventory.

Inthereceivingcostgroup,eventhoughintransitreceiptnotoccurred,stilltheintransitinventorygoodisownedbythereceivingcostgroup.

Therefore,PACaccountingentriesaregeneratedinreceivingcostgroupduetoFOB:Shipmentbetweenshippingandreceivingcostgroup.

FOBpointcontrolsthe

ownershiptransferregardlessofthereceiptstatus.IfFOBisShipment,thentheownershiptransfersatthemomentofshipmentandthegoodsbelongtothereceivingorgassoonastheshipmentisexecutedsoitmovesfromstock

inventoryofshippingorgtointransitinventoryofreceivingorg,when

receivingisdonethenyoujustmovefromintransitinventoryorreceivingorgtostockinventoryofreceivingorg,

thisistheexpectedbehavior

bothinperpetualandinPAC.

IftheFOBisreceipt,thenownershiptransferhappensonlyatthereceipt

time,sowhenShipmenthappensthematerialmovesfromstockinventoryofshippingorgtointransitinventoryofshippingorg,andwhenreceiptisdoneitmovesfromintransitinventoryofshippingorg

tostockinventoryof

receivingorg.

Howareinter-orgtransactionsacrosscostgroupsprocessed?

Directinterorgreceiptsacrosscostgroupsareprocessedascostownedtransactions.

Directinterorgissuesacrosscostgroupsareprocessedascostderivedtransactions.

IntransitshipmentwithFOB:Shipmenttransactionsareprocessedattheshippingcostgroupascostderivedandatthereceivingcostgroupascostowned.

IntransitshipmentwithFOB:Receipttransactionsareprocessedattheshippingcostgroupaswellasasreceivingcostgroupascostderivedtransactions.

IntransitreceiptwithFOB:Shipmenttransactionsareprocessedatthereceivingcostgroupascostderivedtransactions.

IntransitreceiptwithFOB:Receipttransactionsareprocessedatthereceivingcostgroupascostownedandattheshippingcostgroupascostderived.

NOTE:Costownedinter-orgtransactionsarecostedattheperpetualcostoftheshippingcostgroupinsteadofPACitemcostofthecorrespondingcostgroup.

ThisisagapincorePAC,sincePACisprocessedbycostgroup.

ThisgapisaddressedinIterativePeriodicAverageCost(IPAC)methodinR12RUP4(onlyforBrazil)andR12.1(forallcustomers).

InEBS11.5.10,PeriodicAbsorptionCostProcessor(PACP)willaddresstheabovegap.

Inter-orgTransactionType

FOBPoint

PACProcess

DirectInter-orgshipment

N/A

Costderivedatshippingcostgroup

DirectInter-orgreceipts

N/A

Costownedatreceivingcostgroup

Intransitinter-orgshipment

Shipment

Costderivedinshippingcostgroup;costownedinreceivingcostgroup

Intransitinter-orgreceipt

Shipment

Costderivedinreceivingcostgroup

Intransitinter-orgshipment

Receipt

Costderivedinshippingcostgroup;costderivedinreceivingcostgroup

Intransitinter-orgreceipt

Receipt

Costownedinreceivingcostgroup;costderivedinshippingcostgroup

Howisexpenseaccount

forinterorgtxns(directorintransit)withinsamePACcostgroup?

Expenseaccountisusedasoffsetaccountforinterorgtxns(directorintransit)withinsamePACcostgroup.

.

PACaccountingtemplateforassetitem,assetsubinventoryforinter-orgtransactionswithinsamePACcostgroupisgivenbelow:

IntransitShipmenttxn(21-13-21)

DRInventoryOffsetAccountobtainedfromPACCategoryaccounts-MTLaccounts-Expenseaccount

CRInventoryvaluationAccountobtainedfromPACCategoryaccounts-MTLaccountsofeachcostelement

.

IntransitReceipttxn(12-13-12)

DRInventoryvaluationAccountfromPACCategoryaccounts-MTLaccountsofeachcostelement

CRInventoryOffsetAccountobtainedfromPACCategoryaccounts-MTLaccounts-Expenseaccount

.

Forsamecostgrouptransfers,regardlessofwhetherthetransferisdirectorintransit,wemakeadebit/credittoanoffsetaccountandadebit/credittoinventoryaccountforassetsubinventories.

InPACdistributions,

ifthereisadirectinter-orgtransferfromassetsub-inventorytoassetsub-inventorywithinthesamecostgroup(boththeorganizationsareassignedtosamecostgroup)thenthereisnodistributioncreatedforthetransactionastheaccountingwouldhavenoaffect,i.e.,

Forassettoasset

DrMFCA(mtl_fiscal_cat_accounts)InvValuationaccount

CrMFCA(mtl_fiscal_cat_accounts)InvValuationaccount

ForExpensetoExpense

DrMFCA(mtl_fiscal_cat_accounts)Expenseaccount

CrMFCA(mtl_fiscal_cat_accounts)Expenceaccount

PACisnotdesignedfororganization

levelvaluation.

Iforganization

levelInventoryvaluationisneeded,useoneoftheperpetualcosting

methods.

.

NOTE:InEBSR12onwards,InventoryOffsetAccountfieldhasbeenremovedfromthePeriodicAccountAssignmentsform.Inventory_offset_accountwillnotbesetup.Instead,wewillusetheexpenseaccountfromPACCategoryaccountsmtl_fiscal_cat_accountsastheoffsetaccount.

Isitnecessarytocloseallinventoryorganizationperiods,beforeclosingPACperiod?

Yes.

ItisimportantthatalltheopenperiodsofinventoryorganizationsbelongtoPACcostgroupshavetobeclosed,beforeclosingPACperiod.

DonotPeriodicCostUpdateNewCostor%gechangethePACitemcostsofthecurrentonhandPACinventoryinthecurrentPACperiod?

Thisistrue.

PeriodicCostUpdate

NewCostor%gechangeisintendedtochangethePACitemcostsofthebeginningbalanceofthecurrentPACperiod,whichisequaltoendingbalanceofpreviousPACperiod.

Whereas,PeriodicCostUpdate

ValueChangeismeanttochangetheperiodiccostsofcurrentonhandPACinventoryinthecurrentPACperiod,whichincludetheonhandbalanceofallthecost,ownedtransactionsandbeginningbalance.

HowtovalidatePeriodicCostUpdateLOV(listofvalues)whenupdatingperiodiccosts?

ThisLOVwillshowalltheitemsthatareattachedtothemasterorgandhaving(Inventory_Item_Flag='Y'ANDInventory_Asset_Flag='Y'ANDCosting_Enabled_Flag='Y')inthemasterorganization.

WhatisthedifferencebetweenPACandAverageCosting?

PAC

PeriodicAverageCostingisaperiodendweightedaveragecostacrossalltheinventoryorganizationsinagivenPACcostgroup.

ItisimportanttonotethatallthecostownedtransactionsareprocessedfirsttocalculateaccuratePACitemcostattheofPACperiod.

Allthecostderivedtransactions(salesorderissues,misc.issueswithnouser-enteredvalue,interorgshipments)areissuedatonesinglePACitemcostinthatpacperiod.

AverageCostingisaperpetualaveragecostforasingleinventoryorganization.

Transactionsarecostedinreal-item.

Mostofthetime,transactionsarecostedinthesameorderofitscreation.

Thismeans,issuetransactions(salesorderissues,misc.issues,interorg-shipments,others)arecomputedatdiffereentaveragecostatthatmoment.

UnabletorunPACDistributionProcessor.

Setuperrorencountered.

PACDistributionProcessorisanoptionalprocess.

ItisimportantthatcustomersetupallthematerialPACaccounts,materialcategoryaccounts,andPACaccountinglibrarytoperformtransfertoGL,beforeclosingPACperiod.

Howdoyoulinkresourcerates,departmentoverheads,outsideprocessingcostsforPAC?

DefinePeriodicRatescosttype.

InOrgCostGroup/CostTypeAssociationscreen,definePACCosttypeandassociateperiodicratescosttype.

InOrgCostGroup/CostTypeAssociationscreen,thereisanindicatorforMaterialReliefAlgorithm.

Canyouexplainthefunctionality?

MaterialReliefAlgorithmindicatortoUsePre-definedMaterials,orUseActualMaterials.

ThisindicatorisintroducedinR12.

IftherehavebeennopriorWIPtransactionsforthechosenCostTypeinallpreviousperiods,thenyoucanusethereliefalgorithmoptiontorelievematerialusingthequantitythatisactuallyused,orusingthequantitydefinedintheBOM.IfthereareWIPrelatedtransactionsbasedonactuals,thenreliefcostsforallsubsequenttransactionscannotbebasedonBOM.Thereliefalgorithmisonlyapplicableforcomponents.Resourceandoverheadarealwaysrelievedusingtheactualquantity.

PriortoR12,PACusedtorelievematerialbasedonlyonactuals.

InOrgCostGroup/CostTypeassociationscreen,thereisanoptiontoenterProcessUptoDate.

Canyouexplainthepurposeofthisfield?

ThisistorunPACforpartialperiodprocessing.

YoucanrunapartialperiodbyenteringthedateintheparameterProcessUptoDatefieldinthePACprocessors.

HowdoesclosingInventoryAccountingperiodearly,impactPACandGLaccountingperiods?

ItwillnotaffectPACperiodorGLperiod,whichmeanstheaccountingfortransactionswithtransaction_datebetween29thand31stwillstillbeintheGLperiodinwhichtheaccountingdateis,regardlessofwhetheryourcloseyourInventoryperiodearlyornot.

WhyperiodiccostupdatetransactionsdonotshowupforaspecificorganizationwhenqueryingthemonMaterialandReceivingTransactionsform?

Theperiodiccostupdatetransactionsdon'tshowupwhenyouspecifyanorgbecausetheyarenotspecifictoanyorganization.Theyareonlyspecifictothelegalentity,costtypeandcostgroup.

Toviewthesetransactions,donotselectany

organizationandrestrictthesearchwith