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Standard Costing(cost Relieved) And Actual Costing(cost Issues) Shows Variance For Resource Overhead (Doc ID 2532143.1)

Last updated on AUGUST 27, 2023

Applies to:

Oracle Cost Management - Version 12.1.3 and later
Information in this document applies to any platform.

Goal


In standard costing, Cost relieving for Resource/Overhead of Lot Basis (along with another resource of basis type: item) for WIP completion are calculated as item qty basis. As the result, variances occurs.

Steps:
1. Run Create Assembly then define the Routing and BOM
2. Run Supply Chain cost rollup (Assembly's LEAD_TIME_LOT_SIZE = 1)
3. Run Cost update
4. Check Item Cost (Frozen)

Item Cost
  Basis Rate or Amount Unit Cost
Material Item 1.8764 1.87640
Resource Item .002667 0.82704
Resource Lot .016667 0.51684
Resource Item .004348 0.00000
Overhead Resource Value 2.58 1.33346
Overhead Resource Value 2.58 2.13375


5. Create WIP JOB with the Assembly and released.
6. Move transaction and Completion
7. Check issued and relieved costs for resource/overhead

WIP_TRANSACTION_ACCOUNTS
ACCT_LINE_TYPE PRIMARY_QTY RATE_OR_AMOUNT BASIS_TYPE BASE_TRANS_VALUE
4 0.04348 0 1 0
4 0.2667 31.01 1 -8.27  (.827 * 10 as item basis)
4 0.016667 31.01 2 -0.52  (0.52 * 1 as lot basis)
         
3 8.270367 -2.58 4 -21.34
3 0.516844 -2.58 4 -1.33
3 0.516844 -2.58 4 -1.33

 * ACCOUNTING_LINE_TYPE
   3    Overhead absorption
   4    Resource absorption


-MTL_TRANSACTION_ACCOUNTS (relieved costs)

MTL_TRASACTION_ACCOUNTS
BASE_TRANS_VALUE RATE_OR_AMOUNT COST_ELEMENT_ID PRIMARY_QTY
13.44 1.34388 3 10.000000  -> It seems 0.827 * 10 as item basis + 0.5168 * 10 as item basis = 8.27 + 5.16 = 13.4..
34.67 3.46721 5 0.000000


-WIP_PERIOD_BALANCES
TL_RES_IN : 8.79
TL_RES_OUT : 13.44

TL_OVER_IN: 24
TL_OVER_OUT :34.65


Is this the intended functional behavior?
 

Solution

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In this Document
Goal
Solution


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