Work in Process Costing Submitted by Anonymous on Tue, 12/22/2009 - 12:51 Tag: Work in process / Oracle Work in Process provides

a complete cost system to track and report your production costs. WIP Accounting Classes You use WIP accounting classes to establish your valuation and variance accounts. You can enter different accounts for each cost element within a WIP accounting class for maximum elemental account visibility. You can also enter the same account for more than one cost element. If you are assign the same account to more than one cost element, you can choose to have the values of these cost elements summarized before being transferred to General Ledger. Multiple Cost Elements Through the multiple cost elements (material, material overhead, resource, outside processing, and overhead) that you assign to your accounting classes, the system can track all your production costs to the correct valuation and variance accounts. Costing Methods All Oracle costing methods support Oracle Work in Process. However, you can only cost repetitive schedules using standard costs. Job Costs You can cost standard and nonstandard asset discrete production by job. You can report job costs on a periodtodate and cumulativetodate basis. Project Costs If you are using Oracle Project Manufacturing Costing, you can cost jobs by project. Project jobs can be specific to a single contract or a group of contracts for a specific customer. Period Costs You can cost and report your repetitive and nonstandard expense production by period. Repetitive Assembly and Line Costs You can track your repetitive production costs by assembly on a line so you do not have to review your costs by individual repetitive schedule. You can also track repetitive costs by assembly across lines or by line so you can compare costs for your production lines. Transaction Based Costs You can track and report costs through the various stages of production. The system calculates all costs and reports move, issue, resource, overhead, completion, scrap, period close, and job close transaction costs. Resource Charging You can charge resources automatically or manually. Overhead Charging You can charge overhead automatically based on resource value charges, resource charges, or operation completions. Fixed and Variable Resource, Outside Processing and Overhead Charging You can set up resources, outside processing, and overheads with a basis of Lot for fixed charges per job or

schedule, such as setup and teardown. You can use a basis of Item for resources, outside processing, and overheads that vary based on the job or repetitive schedule quantity. Flexible Resource, Outside Processing, and Overhead Absorption You can assign separate absorption accounts by subelement, such as individual resources, outside processing resources, and overheads. As you charge resources, outside processing, and overheads, work in process valuation automatically absorbs your payroll, accounts payable accruals, and overhead cost pools. At period end, you can compare absorbed amounts with actual costs incurred in your general ledger cost pools and accounts. Actual Labor Charging You can charge resources at standard resource rates, standard employee rates, or actual rates. Actual Purchase Price Charging You can charge outside resources at predefined or actual purchase prices. Period Close When you close an accounting period, period close costs are calculated. The system costs and transfers all production costs by account to Oracle Financial products. You can transfer in summary and detail depending on your Oracle Inventory option. Variances You can track and report previous level usage variances for materials and this level efficiency variances for resources and overheads. The system calculates standard cost adjustment variances when the standard cost update is run. Valuation Reporting The system can provides complete valuation reporting including current balances, period to date charges, and cumulative to date charges. You can also report your work in process balances by cost element and level.