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Cost component class determination in Oracle EBS R12

I went through the sheets and my observations are as follows:

1. Firstly there are certain resources that might be used commonly between plants, such as dispensing machine to be used for both Soft Gel facility and General Manufacturing Facility. When these resources are used in production batches in the system, their usage time (machine hours) will be segregated by plant. Accordingly the Resource Cost per unit can also be segregated by plant.

2. The above has prompted me to think that it will be a better option to have uniform Cost Component Classes (instead of Potent -Granulation and General Manufacturing Facility-Granulation) let us have only one Granulation. Now, in this case how will we segregate the Resource Cost and Resource Usage.

3. The Usage will be sum of all the machine hours for the Granulation Resources for that plant from all the batches, this can be done at the batch level and plant level by the system.

4. The Cost will be GL balance in an account code, which will have plant in the location segment which will differentiate the Granulation expenses plant wise.

5. So I feel we can go with one cost component class for all the plants instead of segregating them plant wise. So our Cost component classes will be exact replica of the master Cost center list, to be used across the plants. Please give this a thought and let me know. In case of Quality Assurance QAD, General Plant Overhead GPO and Warehouse Overhead also we can use the same approach.

6. This will let us have only one master sheet for the Cost Component Class in the SON OPM Costing template. Here we have to focus on two things:

1. Max length of Cost component class field can be 16 characters max in system, so accordingly please modify the Cost Component Class names.

2. The field sort sequence should be as per our final cost sheet ( We want to see Material Cost first, then Labour, then various Operations etc)

3. Max length of the Description column is 40 so accordingly please reduce the field. We can use the Cost Center name in the description.

7. We will need to have a separate Cost component Class for Labour-Night since we need the Resource Usage and Expense separately. So we will have a primary cost component class – Direct Labour with two attached Cost component classes (Labour-Day and Labour-Night). This will help us in seeing the Labour Cost as an aggregate along with the breakup into Day and Night in the Cost sheet.

8. In the OPM Costing Template - ‘Definition of Resource Cost Sheet’, the Inventory Organization names will need to be consistent with what Manufacturing folks are using in their master data. So if Potent-1 is used, it should be used consistently across all masters.

9. In OPM Costing Template – ‘Resource Cost Sheet’, we will have to repeat all the resources for the Cost Type – ‘Standard’. I have also updated the values for Calendar and Cost Type. Please use these in the other sheets.

10. In the MFG Gen Data Master sheet in the ACTIVITY Tab, the Analysis Code has to be provided. I suggest we can use Direct (DIR) since all are production activities. We can have a call or discussion on Video Conference or phone on any of the above points. I have attached the data for Potent 1 modified as per the comments above.

For replacing the Cost Component Class names please use find and Replace, it works quick

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