Product Costing Best Practice Using Standard Cost

Purpose of Document

This document is to go through the best practice when multiple modifications of costing factors take place for the standard costing environment.

• Typical process
• Data and application affects the outcome
• Record reservation in this process

Note that this document is to discuss only the standard costing (costing method 07) only and shall not cover the performance considerations for now.

Typical Process:

A typical step for product costing:

-------------------------- During Shop Floor -----------------------

• Work Order Creation (P48013 (Manufacturing Work Order Processing), or equivalent routine using MBF X4801/B4800210).
• Order Processing (via R31410 (Order Processing), or manual interface for Part List, Routing, Time Transaction).
• Material Issue (P31113 (Work Order Inventory Issues), or equivalent) - 3rd Party Interface may occur here in relation with inventory movement.
  
• Completion (P31114 (Work Order Completion).

Note: commonly 3rd party interface is performed during shop floor process

-------------------------- Shop Floor Accounting -----------------------

• Stop shop floor operations/transactions.
• Run Mfg Acctg (R31802A) in final mode to clear unaccounted units and write journal entries for shop floor transactions.
  - Based on F4801
  - Data Selection (commonly F4801.SRST = '60') this status is related with WIP
  - Record Reservation on F4801 for Order Number F4801.DOCO which is the primary key
• Run Variance Journal Entries (R31804) to close completed work orders.
• Run Cost Simulation (R30812). Cost Simulation may be run while the shop floor is operating, with the exception of BOM Integrity (R30601), BOM (P3002) or Routing (P3003) updates. New costs can be approved before freezing.
  • Call Cost Simulation (R30825)
• Run Frozen Update (R30835) to update the Cost Revisions file (F4105) and the Cost Components file (F30026) with new costs. Item Cost Changes (IB) journal entries will be written for the cost change for items in inventory.
  • Call WIP Revaluation (R30837) via R30835 to re-write the Production Cost file (F3102) and write IB journal entries for cost change in Work in Process. Calling R300837 via R30835 will be better option supposing that R30835 is running in the Single threaded Batch Job Queue.
  • Call Item Cost Ledger Update (R30834).
• Validate the output using Data Browser or Production Cost Inquiry (P31022) (refer to <Document 1392226.1> -E1: 31A: P31022 Using the Production Cost Inquiry (F3102)).
• Resume shop floor transactions

In short, do not perform Work Order Process and the Product Costing simultaneously/concurrently. The reason is that the work order processing is mixture of work order number, item, and it's branch. Refer, below record reservation section for detail.

Record Reservation and Transaction Processing:

Record Reservation in this process based on the application release 9.2 (Note that commonly Record Reservation (RR) is working with Transaction Processing (TP) to meet Atomicity, Consistency, Isolation, Durability (ACID)).

Reference:

• <Document 1320968.1> - E1: DB: Listing of Applications with Transaction Processing by EnterpriseOne Release
• <Document 1142464.1> - E1: FDA: F00095 Record/Object Reservation in EnterpriseOne Interactive Application
• <Document 1145943.1> - E1: RDA: F00095 Record/Object Reservation in EnterpriseOne Batch Application
  

Note: Record reservation is performed on Project Number only when the value is not zero. Otherwise, it is performed against Work Order Number.

cf., Transaction Processing

• R30835 Frozen Cost Update
• R31422 Hrs & Qty Update
• R31802A Manufacturing Accounting
• R48132 G/L Journal Generation

Note that the transaction processing implementation is limited in the product costing. (To have full list of applications per the EnterpriseOne applications releases, refer to <Document 1320968.1> - E1: DB: Listing of Applications with Transaction Processing by EnterpriseOne Release).

Known issues due to the missing record reservation:

The 3rd party integration for part list,

<Bug 19049225> : E1: 31A: R31802A RECORD RESERVATION ENHANCEMENT OPPORTUNITY (Bar Code scanning tool issue)

<Document 1301768.1> - E1: UBE: List of UBEs that Must Be Run through a Single Threaded Job Queue in EnterpriseOne

• R30812 Manufacturing Cost Simulation Use the R30812 to calculate costs for discrete and process items based on hypothetical situations. The program updates the Item Cost Component - Add-Ons table (F30026) with the calculated simulated net-added and total costs.
• R30835 Frozen Cost Update When two distinct submissions of this UBE are waiting for one another to complete its processing of a table, a deadlock may occur. It is recommended that these two processes are not run concurrently.
• R31804 Work Order Variances When two distinct submissions of this UBE are waiting for one another to complete its processing of a table, a deadlock may occur. It is recommended that these two processes are not run concurrently.
  

Important: It is highly recommended all mentioned batch to be run in the same single threaded batch job queue (where max job to handle is 1). Based on the case study, this approach seems to be proper.

Simplified routines through business functions for each batches

Below is simplified routine to understand the business functions which affect the product costing and related.

Note:

• It is import to have code current for the objects listed above
  

Z File Interface:

Can DSI or 3rd party scanning tools can interface with Z file inbound? Or is this defeating purpose of 3rd party interface??

Note: 3rd party interface takes place to perform same functionality.

<Internal_Only>This information will be refined along the way with more technical information on the business functions to check and the sequence of data manipulation and so on. </Internal_Only>