Functional Impact Document for OPM Costing Enhancements

FUNCTIONAL IMPACT DOCUMENT

OPM COSTING ENHANCEMENTS

Application Release: Author: Contributors: Creation Date: Last Updated Date: Version: Status: Published by: 12.1.3+ Rathnavani Anagani, Sista Siva Rama Krishna Venkat Chukkapalli, Rajesh Patangya 31-Mar-2013 10-Sep-2013 1.0 Reviewed Rajesh Alex

Functional Impact Document for OPM Costing Enhancements

Table of Contents 1 Patch Details __________________________________________________________________________________ 3 1.1 1.2 2 3 Consolidated Patch Details ___________________________________________________________________ 3 List of Patches/Fixes Included ________________________________________________________________ 3

Scope of the Enhancements ______________________________________________________________________ 4 Changes _____________________________________________________________________________________ 5 3.1 3.2 New Features _____________________________________________________________________________ 5 Improvement / Enhancements _______________________________________________________________ 7

3.3 Functional Impact _________________________________________________________________________ 8 3.3.1 OPM Accounting Pre-Processor Wrapper Parallel Processing _________________________________________________ 8 3.3.2 Accounting Entries at Summarized Vs Detailed Level ______________________________________________________ 9 3.3.3 Item Cost for Ingredient in Target Org using Sourcing Rules _______________________________________________ 11 3.3.4 Actual Item Cost at This Level and Lower Level _________________________________________________________ 13 3.3.5 Provide Lot Cost Adjustments, GL Expense Allocations and Actual Cost Adjustments as additional separate sources in Wrapper ______________________________________________________________________________________________ 14 3.4 3.5 Performance Improvements ________________________________________________________________ 17 Testing Recommendations __________________________________________________________________ 17

Functional Impact Document for OPM Costing Enhancements

Patch Details

1.1 Consolidated Patch Details

Patch Number 15954309:R12.GMF.B 16327188:R12.GMF.B 16103415:R12.GMF.B 16103437:R12.GMF.B

Patch Description OPM PRE-PROCESSOR PARALLELISM ENABLE PARALLEL PROCESSING FOR PRE-PROCESSOR WRAPPER AND POST JLS AT ITEM COST CREATE INGREDIENT COSTS IN TARGET ORGANIZATIONS BASED ON ITEMS SOURCING RULES ALLOW NEGATIVE VALUES IN PERCENTAGE OVERHEADS SCREEN & Display Descriptive Flexfield in Cost Components ACTUAL COST - PROVIDE ACTUAL COST BY COST LEVEL IN ITEM COST SCREEN OPM ACCOUNTING PREPROCESSOR WRAPPER- COST REVALUATION

16103451:R12.GMF.B 14012736:R12.GMF.B

1.2 List of Patches/Fixes Included

Not Applicable

Functional Impact Document for OPM Costing Enhancements

2 Scope of the Enhancements

Process Manufacturing Financials Product has been enhanced in costing and accounting areas with major thrust from Customers either to improve or provide new functionality. These new features would enhance all customers on 12.1.3 and above. The scope of this document is to provide a brief description on the enhanced and impacted features.

Functional Impact Document for OPM Costing Enhancements

3 Changes
3.1 New Features
Current Feature
No provision to initiate OPM Accounting Parallel Processors

Current Behavior
No automatic parallel processing could be initiated using OPM Accounting Pre-Processor Wrapper. Voluminous data has to be processed by a Single OPM Accounting Pre-Processor which may impact timely period closure. Accounting Entries were always generated at detailed level of component class and analysis code.

Enhanced Feature
Parallel Processing is supported for a Source and date range in OPM Accounting PreProcessor Wrapper

Enhanced Behavior
OPM Accounting PreProcessor wrapper submitted for a source and date range has Parameter for number of parallel child OPM Accounting PreProcessors that can be launched Option provided in OPM Accounting Pre-Processor both Wrapper and Form to generate Accounting Entries at Item Cost or Component Item Cost Level If Profile value is set to Yes , Ingredient Item cost is created in Target Organization , provided there is no pre-existing cost , and the cost origin is stamped as Sourcing Rule

Review Comments
OPM Accounting Pre-Processor wrapper is the Parent which launches the specified number of child OPM Accounting Pre-Processors. Parallel processing is currently not supported for Costing Source.

Accounting Entries were generated only at Component Item Cost Level

Provides an option to generation Accounting Entries either at Item Cost or Component Item Cost Level

Applicable for all Sources in OPM Accounting Pre-Processor both Wrapper and Form

Sourcing Rules do not create Ingredient Item Cost in Target Organization

Ingredient Item transferred to Target Organization is entirely accounted for PPV, Provided there is no specific cost available for the same Ingredient in Target Organization.

New Profile GMF: Compute Ingredient Cost in target organization based on sourcing rules determines if ingredient cost has to be created in target Organization

Profile Value should be set at Site level only

For Actual Cost Method Item Cost Display is only at This Level

No two-level display for Product Item Cost similar to Standard Costing

Two level display for actual cost method This level and Lower-Level

Using Actual Cost Method for a Product Item, the costs from Ingredients is displayed at Lower Level and Resource cost, overhead is displayed at This Level for a Product Item.

Behavior similar to Standard Costing

Functional Impact Document for OPM Costing Enhancements

Current Feature
Percentage Burdens allow only positive value.

Current Behavior
Only Positive Percentage Burdens are allowed. No limit on Positive value.

Enhanced Feature
Allows to enter both Positive and Negative Percentage Burdens Descriptive Flex Field available for Component Class Setup Form Revaluation Transactions-Lot Cost Adjustments, GL Expense Allocations and Actual Cost Adjustments now supported individually through OPM PreProcessor wrapper Lot Cost Adjustments are processed individually in OPM PreProcessor Form

Enhanced Behavior
For Negative Percentage Burdens the limit is -100

Review Comments

No Descriptive Flex Field for Component Class Setup Form

Revaluation TransactionsLot Cost Adjustments, GL Expense Allocations and Actual Cost Adjustments not supported individually through OPM PreProcessor wrapper Lot Cost Adjustments were processed by default under Cost Revaluation in OPM PreProcessor Form

Enable and display source: Lot Cost Adjustments only if fiscal policy cost type is Lot Cost Process Status screen: Display value of the new flag Lot Cost Adjustments

The Option to process Actual Cost Adjustments and GL Expense Allocations is now extended to OPM Pre-Processor Wrapper also

Enable and display source: Lot Cost Adjustments only if fiscal policy cost type is Lot Cost Process Status screen: Option to select Lot Cost Adjustments

For Cost Revaluation Source, lot cost adjustment entries are processed for lot cost enabled items and cost revaluation entries are processed for non-lot controlled provided alternate cost method is a Standard Cost Type

Functional Impact Document for OPM Costing Enhancements

3.2 Improvement / Enhancements

This List contains Enhancements delivered on Top of 12.1.3+ Patch Number 15954309:R12.GMF.B 16327188:R12.GMF.B 16103415:R12.GMF.B 16103437:R12.GMF.B Patch Description OPM PRE-PROCESSOR PARALLELISM ENABLE PARALLEL PROCESSING FOR PRE-PROCESSOR WRAPPER AND POST JLS AT ITEM COST CREATE INGREDIENT COSTS IN TARGET ORGANIZATIONS BASED ON ITEMS SOURCING RULES ALLOW NEGATIVE VALUES IN PERCENTAGE OVERHEADS SCREEN & Display Descriptive Flexfield in Cost Components ACTUAL COST - PROVIDE ACTUAL COST BY COST LEVEL IN ITEM COST SCREEN OPM ACCOUNTING PREPROCESSOR WRAPPER, DIFFERENT SOURCES THAN STANDARD PREPROCESSOR

16103451:R12.GMF.B 14012736:R12.GMF.B

Functional Impact Document for OPM Costing Enhancements

3.3 Functional Impact

3.3.1 OPM Accounting Pre-Processor Wrapper Parallel Processing Maximum of number of parallel processors currently supported is 10. Purchasing, Order Management and Inventory transactions are equally divided by date and time range. Production Batch transactions are divided based on Batch Ids When the date range is less than one hour and sources being (1) Purchasing or (2) Order Management or (3) Inventory, only one request will be triggered. Duplicate requests of wrapper with same sources and date range will run into erro

Functional Impact Document for OPM Costing Enhancements

3.3.2 Accounting Entries at Summarized Vs Detailed Level Option to Post Transactions at Item Cost or at Component Item Cost is provided for both OPP Wrapper and OPP Form Default Option is to post Transactions using Component Item cost both OPP Wrapper and OPP Form. If Accounting Derivation Rule existed at component class code level, users should submit the process with Component item cost detail option Default Option.Users should not submit processor option to post transactions at Item Cost

Functional Impact Document for OPM Costing Enhancements

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Functional Impact Document for OPM Costing Enhancements 3.3.3 Item Cost for Ingredient in Target Org using Sourcing Rules New Profile Option GMF: Compute Ingredient Cost in target organization based on sourcing rules if set to Yes, rollup process creates ingredient Item Cost Records in target organization based on sourcing rule setup. Profile Option has to be set at Site Level. If there is a pre-existing cost in the target organization either due to Overheads or Recipe validity rules or manually entered costs, then the processor will not override these existing costs. Item cost in Source Organization will be used to create Item cost for ingredients in Target Organization. Item cost in Source Organization for this purpose would include burdens, resource cost, overheads and material cost. If an item is a Byproduct in the target org and if that item is not used as an Ingredient in the target organization, User needs to define a cost for such byproduct items in the target organization. Cost created in Target Organizations shall not be used for computation in Product Cost calculation. Ingredient Item cost creation in Target org is dependent on Profile value being set to Yes, Item assignment to Target Org, Recipe Validity Rule for the Target Org, and Existing Item cost in Target Org. When Item transferred is not ingredient based on any Recipe for Formula applicable in Target Organization, the Item cost shall not be created based on Source Rule. Ingredient added at Batch Level shall not be sued for creation of cost using Sourcing Rule. Ingredient Item Cost shall be created based on Primary UOM of Item in Target Organization.

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Functional Impact Document for OPM Costing Enhancements

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Functional Impact Document for OPM Costing Enhancements

3.3.4 Actual Item Cost at This Level and Lower Level Similar to Standard Cost Actual Item Cost display is divided into This level and Lower Level Costs. Actual Item cost based on PO Receipts, Resource Cost on Product, Expense Allocations, Overheads , actual Cost Adjustments shall form part of This Level Cost

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Functional Impact Document for OPM Costing Enhancements 3.3.5 Provide Lot Cost Adjustments, GL Expense Allocations and Actual Cost Adjustments as additional separate sources in Wrapper

Enable and display source: Lot Cost Adjustments only if fiscal policy cost type is Lot Cost Process Status screen: Display value of the new flag Lot Cost Adjustments. For Cost Revaluation Source, lot cost adjustment entries are processed for lot costed items and cost revaluation entries are processed for non-lot costed , provided alternate cost method is a Standard Cost Type The Option to process Actual Cost Adjustments and GL Expense Allocations is now extended to OPM Pre-Processor Wrapper

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Functional Impact Document for OPM Costing Enhancements

Fiscal Policy Cost Method

Cost Method in Use

Item Category

Lot Cost with Alternate cost as Standard Cost Lot Cost with Alternate cost as Standard Cost

Lot Cost with Alternate cost as Standard Cost Lot Cost with Alternate cost as Standard Cost

Lot Cost enabled

OPM Pre-Processor Wrapper User should be able to process Lot Cost adjustments. But GL Expense Allocations and Actual Cost Adjustments will end with a Warning

OPM Pre-Processor Form

Additional Information

Lot Cost Adjustments processed

Not Applicable

Non-Lot Cost

Lot Cost with Alternate cost as Actual Cost

Lot Cost with Alternate cost as Actual Cost

Lot Cost enabled

User should be able to Process Revaluation Transactions User should be able to process Lot Cost adjustments. But, GL Expense Allocations and Actual Cost Adjustments ended in Warning

Revaluation Transaction is processed

Not Applicable

Lot Cost Adjustments processed

Not Applicable

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Functional Impact Document for OPM Costing Enhancements

Fiscal Policy Cost Method Lot Cost with Alternate cost as Actual Cost Cost Method in Use Lot Cost with Alternate cost as Actual Cost Item Category OPM Pre-Processor Wrapper OPM Pre-Processor Form Revaluation Transactions are not processed

Additional Information

Non-Lot Cost

Not Supported User should be able to Processes Actual Cost Adjustments, GL Expense Allocations, Revaluations Transactions. But Processor will End in Warning when processed for Lot Cost Adjustments Successfully Processes Revaluation Transactions. Ends in Warning for Lot Cost Adjustments, Actual Cost Adjustments, GL Expense Allocations

Not Applicable

Actual Cost Method

Actual Cost Method

All Items

Successfully Processes Actual Cost Adjustments, GL Expense Allocations, Revaluation Transactions.

If Revaluation is run it may result is accounting of Inventory twice, once for the transaction and another one for Revaluation.

Standard Cost Method

Standard Cost Method

All Items

Successfully Processes Revaluation Transactions.

Not Applicable

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Functional Impact Document for OPM Costing Enhancements

3.4 Performance Improvements

Not Applicable

3.5 Testing Recommendations

The following list is only inclusive but not exhaustive Key Business Flows for Parallel Processing: Key Business Flows 1 2 Run OPM Wrapper for Costing/Revaluation Source , Number of Processes more than 1 Run OPM Wrapper for Inventory Transaction , Order Management , Purchasing Transactions Number of Processes equal to 10 Run OPM Wrapper for Inventory Transaction , Order Management , Purchasing Transactions Number of Processes less than 10 but more than 1 Run OPM Wrapper for Production Batches, Number of Processes equal to 10 Expected Results OPM wrapper triggers only one OPP. OPM Wrapper triggers 10 OPP requests the end date of first request increment by one second becomes the start date of next request OPM Wrapper triggers specified OPP requests the end date of first request increment by one second becomes the start date of next request OPM Wrapper triggers OPP requests segregating the Batch Data based on Batch Ids. All transactions relating to a Batch are picked in one OPP request only. OPM Wrapper triggers OPP requests segregating the Batch Data based on Batch Ids. All transactions relating to a Batch are picked in one OPP request only. OPM wrapper triggers only one OPP

Run OPM Wrapper for Production Batches, Number of Processes less than or equal to 1 and the Period of Posting Start date and Posting End Date is less than One hour Run OPM Wrapper for Inventory, Order Management, Purchasing, Number of Processes less than or equal to 10 and the Period of Posting Start date and Posting End Date is less than One hour Run OPP and OPM wrapper for all identical Parameters

Compare the XLA Headers, XLA Lines between the OPP processed by wrapper and OPP , there should not be any discrepancies. Detailed subledger displays correct entries

Run Detailed Subledger Report for all the above scenarios

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Functional Impact Document for OPM Costing Enhancements Key Business Flows for Summarized Vs Detailed Accounting : Key Business Flows 1 2 3 4 5 6 7 8 9 10 Run OPP Wrapper for Inventory Source with Option Post Transactions at Item Cost Run OPP for Inventory Source with Option Post Transactions at Item Cost Run OPP Wrapper for Order Management Source with Option Post Transactions at Item Cost Run OPP for Order Management Source with Option Post Transactions at Item Cost Run OPP Wrapper for Purcahsing Source with Option Post Transactions at Item Cost Run OPP for Purcahsing Source with Option Post Transactions at Item Cost Run OPP Wrapper for Production Batch Source with Option Post Transactions at Item Cost Run OPP for Production Batch Source with Option Post Transactions at Item Cost Run OPP Wrapper for Cost Revaluation Source with Option Post Transactions at Item Cost Run OPP for Cost Revaluation Source with Option Post Transactions at Item Cost Expected Results Make sure Accounting Entries are at Detailed Level Accounting Entries are at Summarized Level Accounting Entries are at Detailed Level Accounting Entries are at Summarized Level Accounting Entries are at Detailed Level Accounting Entries are at Summarized Level Accounting Entries are at Detailed Level Accounting Entries are at Summarized Level Accounting Entries are at Detailed Level Accounting Entries are at Summarized Level

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Functional Impact Document for OPM Costing Enhancements Key Business Flows Ingredient Item Cost in Target Org based on Sourcing Rule Key Business Flows 1 Switch on the Profile Create a Source Rule where Source and Target Org are different, Recipe Validity Rule exists for Target and Source Org. Ingredient Item cost and on hand quantity exists in Source Org . Transfer Ingredient quantity from Source to Target org. 2 Switch on the Profile Create a Source Rule where Source and Target Org are different. Item cost and on hand quantity exists in Source Org for a Item which is not used in production or there exists no Recipe Validity Rule for Target using this item. Transfer Ingredient quantity from Source to Target org. 3 Switch on the Profile Create a Source Rule where Source and Target Org are different, Recipe Validity Rule exists for Target and Source Org. Ingredient Item cost and on hand quantity exists in Source Org . Item costs exists in Target Org created by Copy Costs, Manual Cost Entered, Fixed Overheads 4 Switch on the Profile Create a Source Rule where Source and Target Org are different, Recipe Validity Rule exists for Target and Source Org. Ingredient Item cost and on hand quantity exists in Source Org . Burdens setup for Ingredient Item in Source Org and Target Org. No predefined Item cost in Target Org. 5 Switch on the Profile Create a Source Rule where Source and Target Org are different, Recipe Validity Rule exists for Target and Source Org. Ingredient Item cost and on hand quantity exists in Source Org . Transfer Ingredient quantity from Source to Target org. Add Manual Cost after Item cost created in Target Org. 6 Switch on the Profile Expected Results 1. Ingredient Item Cost is created in Target Org with Origin as Sourcing Rule. 2. Ingredient Cost created in Target Org shall not be used in computing Product cost. 3. INV Account from Transfer in Target Org shall be accounted with Source Rule Item cost created Item Cost shall not be created in Target Org with Origin as Sourcing Rule.

Ingredient Item Cost shall not be created in Target Org with Origin as Sourcing Rule and existing Item Cost shall with origin as Copy Costs, Manual Costs, Fixed Overhead shall prevail.

Ingredient Item Cost is created in Target Org with Origin as Sourcing Rule, including Burdens from Source Org. However Burdens of Target Org shall not be applied to Item.

Ingredient Item Cost is created in Target Org with Origin as Sourcing Rule and manually added cost row shall be overridden in next cost rollup run.

Byproduct Cost is not created in Target Org.

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Functional Impact Document for OPM Costing Enhancements Create a Source Rule where Source and Target Org are different, Recipe Validity Rule exists for Target and Source Org. Yield By-product and Product. By-product cost exists in Source Org 7 Switch on the Profile Create a Source Rule where Source and Target Org are different, Recipe Validity Rule exists for Target and Source Org. Yield By-product and Product. By-product cost exists in Source Org. Byproduct in one Recipe is used as ingredient in another Recipe. 8 Switch on the Profile Create a Source Rule where Source and Target Orgs are different, Recipe Validity Rule exists for Target and Source Org. Yield By-product and Product. By-product cost exists in Source Org. Transfer By-product from first Target Org to Second Target Org 9 Switch off the Profile Create a Source Rule where Source and Target Org are different, Recipe Validity Rule exists for Target and Source Org. Ingredient Item cost and on hand quantity exists in Source Org . Transfer Ingredient quantity from Source to Target org. By-product Item Cost is created in Target Org with Origin as Sourcing Rule

Byproduct Cost is not created in first Target Org. Byproduct Item Cost is created in Second Target Org with Origin as Sourcing Rule.

1. Ingredient Item Cost is not created in Target Org with Origin as Sourcing Rule.

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Functional Impact Document for OPM Costing Enhancements Key Business Flows Negative Percentage Burdens: Key Business Flows 1 Create Negative Percentage Burdens to the extent of 100. Create negative percentage burdens in fractions Expected Results More than -100 negative percentage burdens cannot be saved and ensured that negative burdens are applied to ingredient and product based on setup. Negative burdens are applied to ingredient and product based on setup.

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Functional Impact Document for OPM Costing Enhancements Key Business Flows for Lot Costing Revaluation via OPM Pre-Processor Wrapper: Key Business Flows 1 Fiscal Policy Cost Method: Lot Cost with alternate as Standard Cost Item Category: Lot Cost enabled 2 Fiscal Policy Cost Method: Lot Cost with alternate as Standard Cost Item Category: Non- Lot Cost enabled 3 Fiscal Policy Cost Method: Lot Costing with alternate cost method as Actual Item Category: Lot Cost enabled 4 Fiscal Policy Cost Method: Lot Costing with alternate cost method as Actual Item Category: Non- Lot Cost enabled 5 Fiscal Policy Cost Method: Actual Cost OPM Pre-Processor Wrapper: Successfully processes Actual Cost Adjustments, GL Expense Allocations, Revaluation Transactions. Ends in Warning for Lot Cost Adjustments OPM Pre-Processor Form: Successfully processes Actual Cost Adjustments, GL Expense Allocations, Revaluation Transactions. Remarks: If Revaluation is run it may result is accounting of Inventory twice, once for the transaction and another one for Revaluation. 6 Fiscal Policy Cost Method: Standard Cost OPM Pre-Processor Wrapper: Successfully processes Revaluation Transactions. Ends in Warning for Lot Cost Adjustments, Actual Cost Adjustments, GL Expense Allocations OPM Pre-Processor Form :Successfully processes Revaluation Transactions OPM Pre-Processor Wrapper: Lot Cost adjustments processed , GL Expense Allocations and Actual Cost Adjustments will end in Warning OPM Pre-Processor Form :Lot Cost Adjustments will be processed. Submission for Actual Cost Adjustments, GL Expense Allocations not supported OPM Pre-Processor Wrapper: Revaluation Transaction will be processed OPM Pre-Processor Form :Revaluation Transaction will be processed Expected Results OPM Pre-Processor Wrapper: Lot Cost adjustments will be processed , GL Expense Allocations and Actual Cost Adjustments ended in Warning OPM Pre-Processor Form :Lot Cost Adjustments will be processed, Submission for Actual Cost Adjustments, GL Expense Allocations not supported OPM Pre-Processor Wrapper: Revaluation Transaction will be processed OPM Pre-Processor Form :Revaluation Transaction will be processed

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