Costing - Average Costing Method

Costing - Average Costing Method
Demo Script (Internal)
Copyright Oracle Corporation, 2003. All rights reserved.
Costing - Average Costing Method Page 1
Table of Contents
Costing - Average Costing Method [EDUM0761] 15-Oct-2004...................................................................1 Costing - Average Costing Method.............................................................................................................................1 Start the Cost Manager................................................................................................................................................2 Define an Item.............................................................................................................................................................4 Perform Miscellaneous Receipts.................................................................................................................................5 Perform an Average Cost Update................................................................................................................................8 View Item Cost History.............................................................................................................................................10 Flowchart...................................................................................................................................................................11
Costing - Average Costing Method Page i
Costing - Average Costing Method

Document Control
Date 15-Oct-2004 Owner David.Dosland App Release 11.5.10 Version v1.0 Change Reference Split the current Costing Standard and Average Costing script into two scripts. Also convert the script to tutor format.
Objective
The purpose of this document is to demonstrate Oracle Average Costing by creating an item and performing a receipt for the item.
What's New? Pitfalls

Document potential pitfalls using instructor text. Try to put most of the pitfalls within the actual text of the Kernels. For example: a bug, gotcha, or common user error, per specific task. Use this section sparingly.
Assumptions
None
Related Business Flows (Optional)

Costing Standard Costing Method Costing LIFO Costing Method Costing FIFO Costing Method
Related Documents
http://globalxchange.oraclecorp.com/demodocs >Reference Materials Folder > Fundamentals
Pre Demo Steps (Optional)
Start the Cost Manager Start the Cost Manager

Run the Cost Manager frequently during your demonstration. This will minimize wait time between performing transactions and viewing the cost layers. If the Cost Manager is active, do not start it again. If the Cost Manage is active, and you wish to run it more frequently, cancel it from Concurrent Requests in System Administration Responsibility. 1. Log into portal.
Field User Name Password Responsibility MFG welcome Manufacturing and Distribution Manager Value
2.
Start the Cost Manager. (N) Inventory > Setup > Transactions > Interface Managers The Organizations list of values form is displayed. Select
Field Organization Value M3 Dallas Manufacturing
(B) OK Click on Cost Manager (M) Tools > Launch Manager >(B) Schedule The Schedule form is displayed.
Complete the Schedule form as follows:

Field Value Periodically End of your demo or prep session. Do not leave this blank as the cost manager will run indefinitely. This could cause log file space to become full, impacting performance.
Run the Job End At
Re-run every
1 Minutes(s). Setting this to run frequently during your demo will eliminate checking to see if the cost manager has run during the demo. From the Completion of the prior run
Apply the Interval
(B) OK > Submit > OK
Begin Demo
Define an Item Define an Item

3. Log into portal.
Field User Name Password Responsibility MFG welcome Manufacturing and Distribution Manager Value
4.
Define an Item (N) Inventory > Items > Master Items The Organizations list of values form is displayed. Select an Organization
Field Organization Value M3 Dallas Manufacturing
(B) OK The Master Items for is displayed.
Enter the following information:

Field Value Enter what you want for an item number Enter what you want for a description
Item Description
(M) Tools > Copy From Enter the following information:

Field Value Purchased Item
Template
(B) Done > (I) Save > (T) Folder (B) Assign To Org
Perform Miscellaneous Receipts Perform Miscellaneous Receipts

This step is done to place quantity on hand and a beginning cost for the item. 5. Add inventory quantity for the new item (N) Inventory > Transactions > Miscellaneous Transactions Enter the following information:
Field Date Type Value Defaults to todays date. Miscellaneous receipt
(B) Transaction Lines Enter the following information:

Field Value Item you created above. Choose any subinventory from the list of values. 10 Select Miscellaneous from the Account Alias List of Values. Enter $10.00
Item Subinventory Quantity Account Unit Cost
6.
(I) Save
Review Cost for the Item. (N) Cost > Item Costs > Item Costs The Find Item/Cost Type Form is displayed. Enter the following information:
Field Item Value Item you created above.
(B) Find The Item Cost Summary form is displayed.
Review the Item Cost Summary form. Note the cost is what you entered in the Miscellaneous Receipts form ($10.00).
(B) Open The Item Cost Details form is displayed. Note the following: Quantity on Hand is what you entered in the Miscellaneous Receipts form (10). Extended Value is Quantity times Cost (10*10=100).
7.
Perform a second Miscellaneous Receipt for the new item. This will show the average cost changes when subsequent transactions are entered. (N) Inventory > Transactions > Miscellaneous Transactions Enter the following information:
Field Date Type Value Defaults to todays date. Miscellaneous receipt
(B) Transaction Lines Enter the following information:

Field Value Item you created above. Use the same subinventory you used I the previous transaction. 10 Select Miscellaneous from the Account Alias List of Values. Enter $5.00
Item Subinventory Quantity Account Unit Cost
8.
(I) Save
Review Cost for the Item. (N) Cost > Item Costs > Item Costs
The Find Item/Cost Type Form is displayed. Enter the following information:
Review the Item Cost Summary form. Note the cost is now half way between the two entries you made ($7.50).
(B) Open The Item Cost Details form is displayed. Note the following: Quantity on Hand is now 20. Extended Value is Quantity times Cost (20*7.50=150.00).
Perform an Average Cost Update Perform an Average Cost Update

9. Perform an Average Cost Update (N) Cost > Item Costs > Average Cost Update > Update Costs The Update Average Cost form is displayed. Enter the following header information:
Field Transaction Date Transaction - Type Defaults Adjustment Account Todays Date Select Average cost update from the List of Values. Select Miscellaneous from the Account Alias List of Values. Value
(T) Transaction Change Enter the following information:

Field Value Item you created above. 7.00
Item New Average Cost
Note the cost group is displayed. By using cost groups companies are able to keep very close to actual costs for specific items as they will be able to have an average cost for the cost group as opposed to an average cost for the organization. You can change the cost by an absolute value or by a percentage. After you enter the item you will see the current average cost and the current total value. (T) Accounts Note these default based on the header information. (T) Value Change This shows the total change in inventory value.
(T) Comments Free form text for whatever you need.
(B) Cost Elements You enter a new cost click on cost elements and see the details.
(I) Save
10. Review Cost for the Item. (N) Cost > Item Costs > Item Costs The Find Item/Cost Type Form is displayed. Enter the following information:
Review the Item Cost Summary form. Note the cost is now the amount you entered in the cost update form ($7.00).
(B) Open The Item Cost Details form is displayed. Note the following: Quantity on Hand is still 20. Extended Value is Quantity times Cost (20*7.00=140).
View Item Cost History View Item Cost History

This will show the transactions that created the average cost. 11. View Item Cost History (N) Costs > Item Costs > Item Cost History The Find Item Costs for Cost Groups form is displayed. Enter the following information:
(B) Find > Cost History > Find The Item Cost History form is displayed. The three transactions you entered and their costs are displayed.
End of activity.
Demo Support
Please see http://adsweb.oracleads.com > (M) Support > Procedures, for current information regarding demonstration support.
Flowchart
Start Start Cost Mgr
Log into portal. (1) Start Cost Mgr. (2)
Define an Item
Log into portal. (3) Define an Item (4)
Perform Misc Receipts

Add inventory quantity for new item (5) Review Cost for Item. (6) Perform a second Misc Receipt for new item. (7) Review Cost for Item. (8)
Perform an avg Cost Update

Perform an avg Cost Update (9) Review Cost for Item. (10)
View Item Cost History

View Item Cost History (11)
End

Costing - Average Costing Method

Încărcat de

Informații document

Descriere originală:

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Costing - Average Costing Method

Încărcat de

Drepturi de autor:

Formate disponibile

Costing - Average Costing Method

Demo Script (Internal)

Copyright Oracle Corporation, 2003. All rights reserved.