1. Discrete Manufacturing SIG Cost Sub-Committee
Cost Update Challenges //
Session Planning
October 21st, 2008

2. Agenda Welcome This Month’s Topic Topics for Balance of 2008
Other Issues / Concerns
Conclusion

3. This Month’s Topic: Cost Update Challenges
Normal processes to use
Challenges and common issues
What Do You Do To Work Around This?

4. Normal Processes

5. Item Mass Cost Functionality
Apply Latest Activity Rates:
Changes item costs after modifying activity rates
Change Cost Shrinkage Rates:
Modifies the costing shrinkage rates for items. This can be a specific rate or the item’s planning shrinkage rate (shrinkage rates are only applicable to assemblies, not purchase components)
Mass Edit Actual Material Costs:
Changes the material cost for items based upon purchasing activity. You can update item costs to be an average of or equal to actual accounts payable invoices, open purchase orders, or historical purchase order receipts for a specified date range.
Mass Edit Material Costs:
Changes the material sub-element by a fixed amount or
percentage as appropriate for the basis type.
Mass Edit Material Overhead Costs:
Changes the material overhead sub-elements by a fixed amount or percentage as appropriate for the basis type.

6. Item Mass Cost Functionality

7. Item Cost Copy Functionality
Release 11i allows you to fold the costs by cost element or keep it separate by cost element
You can specify an currency exchange rate

8. Item Cost Copy Functionality

9. Set Cost Controls
In Release 11i there is a mass edit called “Set Cost Controls” which allows you to change the costing controls in mass:
Shrinkage
Lot size
Based on cost rollup

10. Set Cost Controls

11. Standard Cost Update

12. Average Cost Update

13. Cost Update Challenges

14. Large Cost Update Challenges
Manipulation of large amounts of information:
Inputting large amounts of item cost changes
Keeping item material costs consistent with multiple inventory organizations
Lack of multi-org cost copies across organizations
Lack of multi-org cost mass edits
Cost Roll runs one inventory org at a time
Average Cost Update can be submitted via an Open Transaction Interface but the Standard Cost Update cannot. Limits ability to stage custom cost updates for standard costing.
Any other challenges?

15. Large Cost Update Challenges
What did you do to work around these issues?

16. Topics for Balance of 2008/9? Looking for Ideas, Input?
Lean Inventory Accounting?
Actual costing concepts?
International Financial Reporting Standards?
Release 12 topics of interest?
Best uses for Cost Accounting (tell us about things you are doing well)?
Or Problem Area Discussions?
Joint session with Process Cost Sub-Committee?
Problem solving sessions, or things you would like advice on from the group?
Vendors - will discuss with the group if vendor presentations are ok. Examples:
One vendor provides additional accounting entries for intercompany trading transactions (Virtual Trader).
The second one offers Excel reporting capabilities for G/L and other financial information (Excel 4 Apps/GL Wand).
If you have other vendors of interest please speak up.

17. Other News
Collaborate09: Call For Papers due 31st October
Remaining schedule:
2008
November 18th
December -- No Meeting
2009: (any issues with these dates?)
January 20th
February 17th
March 17th
April 21st
May 19th
June 16th
Summer Break

18. Wrap Up

19. Conclusion This group is what we make it to be.
Lets help each other out and have fun doing it.
Thanks for your participation, tell your friends and associates and grow the network!