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Non-Standard Wip Jobs Of The Assemblies Dilutes Weighted Average Cost Of The Assemblies (Doc ID 1343331.1)

Last updated on DECEMBER 03, 2019

Applies to:

Oracle Cost Management - Version 11.5.10.2 and later
Information in this document applies to any platform.

Goal

Q1: How can non-standard jobs (for repair/rework) be removed from the cost calculation engine so that these "unreal low cost" of the non-standard jobs of the assemblies will not dilute the Weighted Average Cost of the assemblies?

The repair/rework Work In Process (WIP) jobs for the assemblies cannot always reflect the real cost of the assemblies. Sometimes there is $0 cost because the setup the job was not completed properly. The major issue is Weighted Average Cost of these assemblies is being diluted by these non-standard WIP jobs.

Scenario I:
1. Create an non-standard job for an assembly at WIP> Discrete > Discrete Jobs
2. Do not define required component or operations for the repair WIP job.
3. Complete the job at WIP > Material Transactions > Completion Transactions
4. The cost on the WIP job assembly is $0.
5. The Weighted Average Cost of the assembly is being diluted by these non-standard jobs.

Scenario II:
1. Create an non-standard job for an assembly at WIP> Discrete > Discrete Jobs
2. Define required components for the repair job, which includes the base assembly.
3. User complete the job at WIP > Material Transactions > Completion Transactions
4. User then issue the components to the job later at WIP > Material Transactions > WIP Material Transactions
4. The cost on the WIP job assembly is $0 because the materials are issued after job completion.
5. The Weighted Average Cost of the assembly is being diluted by these non-standard jobs.

Q2:
This works when choosing User-Defined Cost Type with Average as the cost type.

By studying the cost type System Calculated, found sometimes the job complete as 0 cost if user didn't issue material to the job before job completion. But sometimes, the job complete with a cost (not current Weighted Average Cost of the assembly) even if user didn't issue material to the job. Where did the cost come from? Why sometimes it collects cost to the job sometime not if user did not issue material before job completion?

Solution

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In this Document
Goal
Solution


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