Oracle Outside Processing

Rob Pierson DARC Corporation

11-7-2005

Agenda
Introductions Overview Setup Execution Costing Q&A

Overview

What is Outside Processing?

A means of providing supplier-sourced components and processes as an integral part of the manufacturing process

Overview
Outside processing (OSP)

Consists of the use of inventory items and resources to model suppliersourced services
OSP resources are used to schedule and cost supplier-sourced services within manufacturing routings

OSP allows for routing operation steps to be converted into purchase requisitions wherein the req line item is the OSP item
WIP automatically requisitions material and purchase orders are charged directly to work orders Close loop, fully integrated solution

Overview
OSP Features

Multiple OSP operations on a work order and multiple OSP resources per operation
Supplier provided components are included in BOM and referenced as supply type = supplier

Automatic requisition generation

Full tracability of work orders on purchase orders, receipts, & receiving transactions Automatic resource charging and move transactions

Automatic work order completions

Overview: OSP Integration

Oracle Inventory

Oracle Bills of Material

Oracle Cost Mgmt

Oracle Outside Processing Oracle Work in Process Oracle Purchasing

Oracle Mobile Supply Chain

Setup: Inventory
Item Master

Create OSP item using item template = @Outside Processing

Setup: Inventory
Item Attributes

Item Attributes
Inventory Item Stockable Transactable Costing Enabled Inventory Asset Value Include in Rollup Purchased Purchasable Outside Processing Item Unchecked Unchecked Unchecked Unchecked Unchecked Unchecked Checked Checked Checked

Setup: Inventory
Outside Processing Unit Type

Assembly OSP resource charges are based on the work order quantity
Resource OSP resource charges are based on the work order quantity x the resource run rate List Price

Enter a list price

Setup: Resources
Outside Processing Resource

Setup: Resources
Standard Costing Considerations

Type = Currency
UOM = Dollars Average Costing Considerations Type = Amount UOM = Each Department Locations need to be setup

Setup: Routings
Operation Resources

Setup: BOM
Supply Type Supplier

Setup: WIP
Shop Floor Status Allow Moves = Unchecked

Setup: WIP
WIP Parameters

Setup: WIP
WIP Parameters

Setup: Cost
Cost Rollup

Execution: WIP
Create and Release WIP Job

Execution: WIP
Perform Move Operation

Move material from operation 10, Queue, to operation 10, To Move Perform transaction save Remember, WIP Parameter
Requisition Creation Time = @ Operation

Execution: WIP
Perform Move Operation

Execution: WIP
WIP Components

Execution: WIP
WIP Components:Supplier

Execution: Purchasing
Perform Requisition Import

Execution: Purchasing
Perform Requisition Import

Execution: Purchasing
WIP: Enable Outside Processing
Yes
No

Enable OSP workflows

Disable OSP workflows

Execution: Purchasing
Requisition Summary

Execution: Purchasing
Requisition Summary

OSP item list price x work order assembly quantity

Execution: Purchasing
Requisition Summary

Approved Status

Execution: Purchasing
AutoCreate Purchase Order & Approve

Execution: Purchasing
AutoCreate Purchase Order & Approve

Execution: Receiving
Receipts

Execution: Receiving
Receipts: Outside Services Tab

Execution: Receiving
Receiving Transaction Summary

Costing: WIP
Resource Distribution at Standard Resource Type: Currency (USD) Outside Processing Unit Type: Assembly Operation Resource Usage: $ 5 (based on resource UOM) Assembly Quantity: 10
Resource Distribution = 10 units x $ 5/unit = $ 50

Costing: WIP
Purchase Order Pricing List Price: $.60 Outside Processing Unit Type: Assembly Assembly Quantity: 10

PO Extended Price = 10 units x $ .6/unit = $ 6

Costing: WIP
Outside Processing Charging & Variances Differences between the standard resource charge and the actual OSP purchase price are are charged to the OSP variance account
01-000-1450-0000-000 01-540-1430-0000-000 01-540-1450-0000-000 01-540-7405-0000-000 01-540-1410-0000-000 $50 $25 <$44> <$25> <$6> Debit to OSP inventory valuation Debit to Overhead inventory valuation Credit to OSP variance account Credit to Overhead Absorption account Credit to OSP Absorption account

Costing: WIP
WIP Value Summary

Costing: WIP
WIP Value Summary: Distributions

Costing: WIP
View Resource Transactions

Costing: WIP
View Resource Transactions

Costing: WIP
View Resource Transactions

Costing: WIP
View Resource Transactions: Distributions

Costing: WIP
View Resource Transactions: Distributions

Questions & Answers

Oracle Outside Processing