1. 1 Oracle ABM Features ABM Architecture ABM 11i –Cost allocation engine –Build and maintain models –Integrated with Oracle Apps 11i SEM Exchange –Direct link to Oracle GL –Used to quickly import data ABM Analyzer –End user layer for Oracle Discoverer –Multi-dimensional analysis of ABC data –Distributes ABC information to those who need it

2. 2 Oracle ABM has following 5 components. Setup Database ABM Setup Data Import function each ABM object ABM Data Import Access Web browser Web Viewer Setup master object Such as dept,activity, account, and etc ABM Object define Calculate Activity Cost Rate Calculate Activity Cost for Cost Object ABM Cost Calculation Oracle ABM Features

3. 3 1. Multiple models for each decision making purpose within one database 3. Excellent allocation performance for large volume data Oracle ABM Key Features 2. Various allocation and tracing 4. Integration with OLAP and Easy Interface 5. ABB for reasonable Budgeting and Resource Allocation

4. 4 Functional– Various cost model Sub-process B Activity cost Prod cost Customer A Customer Activity Prod cost Division A Plant 1 Plant 2 Dept 1 Dept 2 Activity Process A Plan Actual Process Perspective Product Perspective Customer Perspective Mfg Perspective Key Feature 1

5. 5 dept C expense dept D expense Function – Various allocation methods Activity1 2 3 4 1 R to R R to A A to R A to A dept A expense dept B expense Activity2 Activity3 Activity4 Key Feature 1

6. 6 Functional – Tracking allocation Cost object Dept- Acct Dept-Act Key Feature 2

7. 7 Key Feature 3 Excellence allocation performance for calculating costs. Oracle DB can scale to provide gigabytes of data for both current period data and historic data ResourceActivityCost object Account costActivity costProd/Sales cost 204 dept /502 Acct897 Activity Monthly Avg 13,000 (3,500 Production, 9,500 Sales) TOTAL : 3hr. 10min 30 minutes40 minutes120 min Samples

8. 8 OLAP Analysis report  Provide various activity cost Analysis reports  Easy Inspect of allocation result  Easy End User Computing Key Feature 4

9. 9 Importing Data - Staging Tables Data may also be imported from the staging tables. The staging tables may be loaded directly with custom SQL, or via the UI with the wizards.

10. 10 Functional – ABB [Activity Based Budgeting) Prod A Prod B Prod C `` dept 100 acct 1 acct 2 dept 200 Budget dept Forecast demand Bills of Resource Prod A Act 1 Act 2 Act driver X Act driver Y Act A Stat InfoActivity rate Activity 1 Activity 2 Activity 3 Activity 1 acct 1 Activity 2 acct 2 Activity cost Production qty /product Drives Activity cost rates and Activity Diver volume Budget Amount by departments Key Feature 5

11. 11 Agenda [Day 3] 1.Oracle ABM Features 2.Hands- on Practice - ABM 3.Solution SW Analysis [Day 3] 1.Oracle ABM Features 2.Hands- on Practice - ABM 3.Solution SW Analysis

12. 12 Lesson Overview Determine Cost Objects Determine Activities Identify Cost Sources Outside of ABM 11i Within ABM 11i Setup Model Creation Data Population Cost Mapping Activity Rate Calculation Bill Creation Cost Object Unit Cost

13. 13 Setup Model Creation Data Population Cost Mapping Activity Rate Calculation Bill Creation Cost Object Unit Cost Inspector Panel : All ABM data is displayed and execution button Tool Bar : New,Delete,Save,Refresh,Select All,Tools,Log Out,Help,find Status Bar : Parameter status Setup Control panel: Show navigation path and user can recognize where he or she is.

14. 14 Setup Model Creation Data Population Cost Mapping Activity Rate Calculation Bill Creation Cost Object Unit Cost Setup Set up Global preference as following : Nav Path: Tool bar-> Global preference

15. 15 Model Creation Selecting the Dept, Acct, Activity, Cost Object from master list Setup Model Creation Data Population Cost Mapping Activity Rate Calculation Bill Creation Cost Object Unit Cost define multi model for each purpose within one master list.

16. 16 Data Population An alternative way to create model structure is to use the importing facilities and data Population –From a spreadsheet : Currently, 26 Excel templates are supported. –From the staging area. : Data may be imported from the staging table. The staging tables may be loaded directly with custom SQL, or via the UI with the wizards. The following files are used for the sections of the training class: –Mdl Dept Account Data01 Model Dept Account Data.xls –Mdl Dept stat Data02 Model Dept statistic Data.xls –Mdl Dept Act Stat Data03 Model Department Activity Statistic Data.xls –Mdl Dept Act Driver Data04 Model Dept Activity Driver Data.xls –Mdl Dept Activity Drivers05 Model Dept Activity Drivers.xls Nav Path: Import-From Spreadsheets and select the appropriate import template Setup Model Creation Data Population Cost Mapping Activity Rate Calculation Bill Creation Cost Object Unit Cost

17. 17 Cost mapping Cost Mapping –The Mapping wizard walks you through the process of defining mapping rules(Allocation Rules). –Your mapping rules define how your costs are distributed between departments and activities. –Resources are “pulled” by into the targets selected in your mapping rules –The next set of slides explain the steps of the mapping wizard. –Rules Tab / New icon Mapping component –Mapping Calculation Used to specify parameters for mapping calculation Specific to only one Mapping Rule Set –Mapping Rules Mapping sources may only exist once within an MRS per effective date Mapping rules may be enabled and disabled for the selected calculation Setup Model Creation Data Population Cost Mapping Activity Rate Calculation Bill Creation Cost Object Unit Cost

18. 18 Headcount Cost mapping Mapping Practice Structure AP_Company AP_plant MFG Part Operation Dept Head office Desktop Sales Notebook sales Finance Salary Sales expense Telecom expense PR expense Salary Sales expense Telecom expense Entertainment meal Deprc cost Labor cost Electric Chg Expendables Salary Expendables Telecom chrg Salary Sales expense Telecom expense Entertainment meal Board Assembly Assembly Standby Memory assembly CPU assembly Packing Test & Shipping Case assembly B.&C assembly Entire assembly 1 st Packing Box Packing Moving Quality Test Shipping Returned G.handle Board Exam B.Elect test Board Exam Mfg plan OP Mgt Quality Mgt Order Process AR Collecting Claim Mgt Order Process AR Collecting Claim Mgt Activity ratio Operation Hours Activity ratio Operation Hours # of Quality Test

19. 19 Select a Mapping Calculation Cost mapping Step 1. Select Mapping calculation name

20. 20 Click the Search Button For the first mapping rule, Select D230 department as the source account! Cost mapping Step 2. Select a Source - Dept Account or Dept Activity

21. 21 Cost mapping Step 3. Select Targets - by Method, Destination or Mapped Source For your first rule, select “ By Target Destination ” as the selection option!

22. 22 Click the Search Button Select Destination type of “ Dept ” and the Headcount as your targets! Cost mapping Step 4. Select Method type as Dept statistic

23. 23 Cost mapping Step 5. Select the destinations of your mapping Select your D120,D210, D220 as Destinations

24. 24 Step 6. finish to save your rule... Cost mapping

25. 25 Activity Rates Activity Rates are combinations of activity costs with associated drivers. An activity rate may be computed for all unique combinations of Dept - Activities and Dept-Activity Drivers. For this class, the relation ship between Activity and Driver has been created via the spreadsheet imports. To compute Rates, you must run the Activity Rate Calculation. Setup Model Creation Data Population Cost Mapping Activity Rate Calculation Bill Creation Cost Object Unit Cost

26. 26 Activity Rates Activity rates for practice Claim Mgt AR Collection Activity Number of Occurred Claims Number of Collections Activity Driver Operating Activity Operating Hours Unit Cost per claims Unit cost per collection Activity rates Unit cost per Operating hour Order Mgt Number of Processed Order Unit cost per order

27. 27 Activity Rates Nav Path : Object -> Activity -> Rates

28. 28 Bill Creation The Cost Object Bill is the hierarchy of activities, materials and sub- components that define the cost components for the product or services that are produced. A bill is defined as a cost object and an associated bill type. Bill Components –A bill item Bill item is the term that is used to refer to an activity, material or child bill (sub-component) related to a parent bill. –Item Consumption Quantities Specified at the item level and represent the level of consumption consumed to produce the bill. Consumption quantities are stored in DS’s for easy manipulation of your bill Setup Model Creation Data Population Cost Mapping Activity Rate Calculation Bill Creation Cost Object Unit Cost

29. 29 Bill Creation MaterialActivity Desktop computer Desktop Computer II Notebook computer CPU Memory Chip Case Board Assembly Standby Memory assembly CPU assembly Packing Test & Shipping Case assembly B.&C assembly Entire assembly 1 st Packing Box Packing Moving Quality Test Shipping Returned G.handle Board Exam B.Elect test B.Exam Total cost calculation(Bill of Resource) hierarchy for Practice

30. 30 Bill Creation A customer B customer C Customer Sales Prod Sales Activity Desktop computer Desktop Computer II Notebook computer Claim Mgt AR Collection Order Mgt Total cost calculation(Bill of Resource) hierarchy By customers

31. 31 Bill Creation Nav Path : Objects-> Bill-> Cost object select

32. 32 Cost Object Unit Cost Calculation Weighted sum of all materials, activities and child bills. Rolls up individual item costs into an overall cost object unit cost. Sub-Component unit cost is automatically calculated. The details of the cost object unit cost calculation will show Activity and Material Totals. Setup Model Creation Data Population Cost Mapping Activity Rate Calculation Bill Creation Cost Object Unit Cost

33. 33 Cost Object Unit Cost Calculation Nav Path : Objects-> Cost Objects-> Unit Cost