Planned Orders Schedule Changes Material Substitutes Resources Substitutes
Process Sample
Lot-Based Analyze Adjust
Suppliers Quality Management
Asset Maintenance
Lot / Serial Genealogy Tracking, Electronic Signatures
Demand Schedules Sequencing Configured Order
Service
MES APIs, Direct Access
Production Status Material Availability Mfg Capacity Schedules/Changes Ship Notices Invoices/Payments
Partner Collaboration Customer Hexaware Technologies. All rights reserved.
Enterprise Shop Floor
Subcontractors
Suppliers
Process Manufacturing Blocks
Analysis Costing
Product Development
Process Execution
Process Planning
Regulatory Management
OPM MES
Quality Inventory
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Process Costing
Analysis Costing
Product Development
Process Execution
Process Planning
Regulatory Management
OPM MES
Quality Inventory
Hexaware Technologies. All rights reserved.
Process Costing Solution
Enables you to : Optimize profits and margins Capture precise product costs Facilitate proactive cost management Assure proper accounting of resources & materials
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Key Features Support Multiple Simultaneous costing methods Flexible costing elements Transfer from Process to Discrete Unlimited costing: Calendars Periods Classes / Types Analysis codes
Co-product & Byproduct costing Costing engine independent of, but tightly linked to the General Ledger
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OPM Costing Flow
Oracle Inventory
Purchasing
Order Management
GMD, GME
Cost Setup
Calculate Cost
Store Costs
SLA
Oracle GL
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Organization Structure Changes
Parent Company OPM Company Ledger
Legal Entity
Operating Unit
Plant or Lab
Inventory Org OPM Warehouse Subinventory Locator
Locator
11.5.10 Hexaware Technologies. All rights reserved.
Release 12 10
OPM Industry Standard Terminologies
11i Terminology 12 Terminology
Cost Method
Cost Types
Burdens
Overheads
Percentage Burdens
Percentage Overheads
PM Batch Detail (Actual cost transaction view)
Production Batch
PCO account Cost Component Class Usages: Cost Detail FM Route - Burdens
COGS account
Material Resource - Overhead
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OPM Costing
Material
Acquisition Overhead
Resource Indirect
Actual
Standard
Lot
Cost Development
Monitoring
Allocation
Analysis
Valuation
PWAC
PMAC
LAC
PPAC
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Actual Cost Averaging Algorithms
Perpetual Weighted Average (PPAC)
Period Moving Average (PMAC) Period Weighted Average (PWAC) P-n P-2 P-1 Current Period (P)
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Actual Costing Logic - PWAC
The PWAC cost is calculated based on this logic: [Batch costs + Value of Incoming Transfers+ Value of Receipts+ Cost Adjustment Value + GL Expense Allocations] [Product Yield +Transfers + Receipts +Average Cost Adjustment Quantity]
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14
Actual Costing Logic - PMAC
The PMAC cost is calculated based on this logic:
[(Prior Period Cost * Prior Period Closing balance) +Batch costs + Value of Incoming Transfers+ Value of Receipts+ Cost Adjustments Value + GL Expense Allocations] [Prior Period Closing Balance + Product Yield +Transfers + Receipts +Average Cost Adjustment Quantity]
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15
Actual Costing Logic - PPAC
The PPAC cost is calculated based on this logic: [(Prior Period PPAC Cost * Prior Period PPAC Quantity) +Batch costs + Value of Incoming Transfers+ Value of Receipts+ Cost Adjustments Value + GL Expense Allocations] [Prior Period PPAC Quantity + Product Yield +Transfers + Receipts +Average Cost Adjustment Quantity]
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16
Actual Costing Logic Last Invoice & Transaction
Last Invoice Cost from most recent invoice in the period for the raw material Last Transaction Cost from the most recent invoice or receipt in the period for the raw material
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17
Simultaneous Multiple Cost Methods
Effectively compare costs by using various methods
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Costing Definition
Ability to define different Cost types Ability to define different type for Raw Material & Products Lot Cost Type
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Cost Component Classes
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. They are classified into elements or usage Material Resource Overhead Expense Allocation Standard Cost Adjustment Type 20
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Cost Analysis Code & Component Group
Component Group Lets you collect specific material or resource component costs for category grouping Eg: material cost, resource cost Can also be used for custom reporting and Analysis
Cost Analysis Code Cost component class can be further broken down using cost analysis code for more granular tracking
Used to group component costs from multiple cost component class types to provide an alternate view of the total cost Eg: define direct or indirect analysis codes for each cost component
Production batch has 4 steps Release Step completion (resources) Completion (materials) Close
Accounting entries: Release: Inventory to WIP Step completion: RCA (absorption account) to WIP Completion: WIP to inventory Close: variance calculation
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23
Production Variances - Material
Usage Variance (USG) occurs when the actual ingredient quantity is different from the cost formula scaled quantity Substitution Variance (SUB) occurs when actual ingredients used and the cost formula ingredients are different Yield Variance (YLD) occurs If product quantity is different If new products are yielded If some product yields missing
Closing Variance (CLS) is used to clear out the WIP entries created in batch release and complete events
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Production Variances - Resource
Resource Usage Variance occurs when the actual resource usage
is different from the scaled formula resource usage
Resource Substitution Variance (RSV) occurs when the actual resources used and the costing formula resources are different Resource Manning Variance (RMV) occurs when the actual resource count is different from the costing formula resource count
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Subledger Accounting OPM Costing with SLA Completed material and resource transactions Define Journal Line Types
Journal Entry Descriptions
OPM Costing engine generates cost
Account Derivation Rules
Journal Lines Definitions
Cost Preprocessor creates accounting events SLA processes these events to create journal entries
Application Accounting Definitions Subledger Accounting Methods Assign Application Accounting to the Ledger
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How Does Oracle Create Journal Entries
1. Allocation Process 2. Cost Update Process Preliminary
3. OPM Sub ledger Pre Processor
Costing
4. Cost Update Final
5. Create Accounting 6. Transfer to the GL
Transactions from OPM, INV, PO, OM etc
General Ledger SLA Definitions
27
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Cost Update Process
The Cost Update Process copies the OPM cost from costing to the GL Item Cost to be used in generating the journal entries
Costing
Act / STD/ Lot Cost
Item Cost Legal Entity Calendar Period Cost type
GL Item Cost
GL Item Cost X Transaction Qty
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OPM Subledger Pre Processor Update
Transaction Quantity
GL Item Cost
Journal Template
Transactions from OPM, INV, PO, OM etc
The Sub ledger Pre Process calculates the currency value of the transaction(s)
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29
How does Oracle create Journal Entries
Order Management (Shipping): COGS Inventory: Adjustments and Transfers of Inventory
The Create Accounting process builds and assigns account code combinations to the journal templates
Subledger Accounting Engine: Processes all transactions and produces balanced journal entries ready to be interfaced to the General Ledger
OPM Costing: Inventory reValuation
SLA Definitions
General Ledger
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Account Creation & Period Closing
Complete & Close POC Steps & Production Batches Complete Sales Shipment & Close AR Complete Inv. Adjustments Complete Purchasing, Receiving and Close AP
Make Actual Cost Adjustments
Run Inventory Close Processing (Preliminary)
Run GL Expenses Allocation Process
Run Actual Cost Process
Enter/ Modify Expenses Allocation
Run Cost Update Preliminary
Run Test Subsidary Ledger
Transfer Sub Ledger Journals to GL
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Run Final Cost Update & Subsidary Ledger Update
Run Inventory Close Process (Final) & Close Cost Period
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MAC To SLA Transformation
OPM MAC Source Event Sub-Event Account Titles Accounting Template Account Mapping Attributes Priorities and Account Mapping Test Mapping OPM Currency, OPM Ledger, OPM Exchange Rates Test and Actual Subledger Accounting Subledger Program Draft and Final Accounting Accounting Pre-Processor Supports multiple valuation methods SLA Process Category Event Entity Event Class Journal Line Types (JLT) Application Accounting Definitions (AAD) (SLA) Sources Account Derivation Rules (ADR) Test Accounting Builder (TAB) Comments
Use GL set ups
-
Run Subledger for multiple valuation/cost methods for a ledger.
Detailed Subledger Report
SLA supports multiple representations at the same time.
Is retained and has been modified to use SLA repository
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Procurement Accounting Flows
1. Enter PO: Accounting Impact Nil 2. Enter a receipt: -------------Debit --------Inventory Receiving Account (ISP) -------------Credit-------- AP Accrual Account 3. Inspect and Accept: Accounting Impact Nil 4. Delivery to stock: -------------Debit ---------Inventory Account -------------Credit --------Inventory receiving account (ISP) -------------Debit ---------Purchase Price Variance (PO-Unit Cost) 5. Enter PO Matched Invoice - Out Side OPM -------------Debit ---------AP Accrual Account -------------Credit --------Supplier Liability Control Account 6. Enter payments against the invoice Outside OPM -------------Debit ---------Supplier Liability Account -------------Credit --------Cash / Bank Account Hexaware Technologies. All rights reserved.
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Inventory Accounting Flows
1. Miscellaneous Receipts, Account Receipts, Account Alias Receipts ----------Debit --------Inventory ----------Credit -------Inventory Adjustment Expense 2. Miscellaneous Issues, Account Issues, Account Alias Issues ----------Debit -------- Inventory Adjustment Expense ----------Credit -------Inventory 3. Inventory Org transfer : -Direct Transfer -In transit Transfer The two transfer are supported in Same OU and across OU.
1. Sales Order : No Accounting Impact 2. Ship items -----------Debit ---------Deferred COGS -----------Credit --------Inventory 3.1 Enter invoice when customer is Billed In AR Module -----------Debit ---------Receivables -----------Credit --------Deferred Revenue 3.2 When Portion of Revenue is recognized In AR Module -----------Debit ---------Deferred Revenue -----------Credit --------Revenue 3.3 Additional Entry in OPM to reflect earned revenue -----------Debit ---------COGS -----------Credit --------Deferred COGS 4.1 RMA Returns (Before revenue recognition) -----------Debit ---------Inventory -----------Credit --------DCOGS 4.2 After portion of revenue recognized -----------Debit --------- Inventory -----------Credit --------- Deferred COGS -----------Credit -------- COGS Hexaware Technologies. All rights reserved.
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OPM LCM Integration Overview
The objective to use the accurate landed costs in OPM cost calculations and accounting Support of Landed cost for all receiving transactions Receive, Deliver Correction, Return Landed cost by Cost components Item cost details consists of component wise cost in OPM Support Actual Landed Costs Item, freight, charge invoices Hexaware Technologies. All rights reserved.
Support LC adjustments in Actual cost Process Support LC Adjustments in Lot Cost Process GMF: Landed Cost Adjustments Transfer Method to Inventory In Actual Costing with Apply whole LC Adjustment to Inventory Apply LC Adjustment based on the Period Opening Bal Post LC Adjustment journal entries in OPM Accounting PreProcess 37
Process Costing Solution
Enables you to : Optimize profits and margins Multiple cost methods: standard, actuals, lot Capture precise product costs Co-products, unlimited cost elements, cost allocations
Delivery Centers Mumbai Chennai Nagpur Pune Coimbatore Bengaluru New Jersey Dallas Mexico Singapore
8,950 Employees globally (Sep 13)
Industry Recognitions
53 Million dollar clients (Sep 13)
35 Offices worldwide
364 $ mn Revenues in CY 12
Certifications CMMI Level 5, ISO 9001 & ISO 27001, SAS 70 Type II, ISO 20000 Hexaware Technologies. All rights reserved.
Awarded the prestigious Golden Peacock Award for Excellence in Corporate Governance Listed on Forbes Asias 200 Best Under a Billion List Winner of the prestigious UK Oracle User Group PeopleSoft Partner of the Year Award for the year 2012 Winner of the Information Mastermind Award 2012, by IDG Listed among the Top 100 Innovative service Provider by Global Services 100 Listing Ranked among leading IT service providers in International Association of Outsourcing Providers (IAOP) Global Outsourcing 100 list. Winner of BPO Excellence Awards 2012- 2013 [Subsidiary : Caliber Point] Winner of the EMC Transformers Award for its Cloud and Disaster Recovery (DR) implementation Recognized and awarded the Best in Corporate Responsibility Practice award by Indy's Awards Received the prestigious CIO100 Award, by IDG.
Golden Peacock Award
39
Oracle @ Hexaware
Oracle PeopleSoft Seibel CRM Siebel
CRM Oracle E-Business Suite E-Business Suite Technology
Technology
Oracle Tools/J2EE
E-Business Suite o Over 100+ Projects worldwide One of the earliest to implement Oracle R12
PeopleSoft o o #1 offshore PeopleSoft partner PeopleSoft development partner before the acquisition
Business Intelligence o Voted as one of the leading BI services vendor by Gartner Over 100+ BI customers
Executed over 600 projects for 150+ customers 2500+ trained Oracle consultants Expertise across Human Capital Management, Finance, Supply Chain, Manufacturing and CRM 40
