To Capture Labor Cost In Work Order Through OTL (Oracle Time & Labour) With Multiple Rates

For the example, You wants to capture the 'Actual Labour Cost' for each the work order.Maintenance employees work in different shifts and have different applicable rates.The working time will be entered against work orders using OTL.
Application must not calculate the cost based on rate defined for Resource as many employees will work under each resource.Depending upon the time or shift they work, the cost should be accounted for the work order


For the above case, there is no standard function to handle simultaneously 'Labour rates' for both Regular and Overtime for an employee within eAM. It provides a means to capture the costs at both Resource level and at Employee level. Depending on whether a resource or an employee is charged, the corresponding rates are used by the resource transaction cost manager. There is no way to capture 'Overtime rates' in EAM as of today


There is only 1 obvious workaround that you might consider feasible,The workaround is to use 2 separate resources each one with own rate.
1. RES_REGULAR resource with cost rate = 100
2. RES_OT resource with cost rate = 50
3. Assign the same employee to both.
4. Create 2 charge time transactions. 1 for regular one using RES_REGULAR resource and 1 for the Overtime using RES_OT.
5. You will have 2 resource transactions at the desired rates. And the cost is correct.

Asset Route Cost Distribution To Member Assets in EAM

According to the new design costs no longer reside in the Route asset...Instead it will get distributed to the member Assets, even if you have a work order for the Route asset.
For the example :
If you have a work order, Route asset Costs for this work order will get distributed to the member assets for the route, When you look at Work Order Value Summary form, you look at costs for a particular work order...Hence in the work order value summary form, you are able to see the costs for the work order
                                                                                                               
However in Self Service, According to the new design the Route asset would not hold any cost..It will get distributed to its member Assets..Hence Route asset does not show up any cost ,However if you search for costs for each of the member Assets, then you will be able to track the cost of the work order for the Route asset


Asset route is a logical asset and costing of asset route works as below:
During the transaction processing, costs are accumulated to the A/c's in the Asset route work order WIP accounting class. Till the closure of asset route work order , these costs would be accounted in the WIP of Route work order only.After closing the Asset route work order, these costs would then be actually distributed to each of the member asset "WIP accounting class variance accounts"

Purchasing Encumbrance Accounting Concepts and Process

Encumbrance accounting is a form of budgetary control within Oracle Applications which allows a company to allocate funding for specific accounts.  There is a funds checking feature integral to encumbrance accounting which checks for funds availability on those accounts and can either prevent (absolute), warn (advisory) or ignore (none) funding availability (dependent on how each account is defined in GL) for the specific transaction (requisition or purchase order)
that is currently being performed

Basic Process

---------------------

The basic process flow for encumbrance accounting activity related to Oracle Purchasing typically is as follows:

1. Create a requisition.
2. Approve and reserve funds for the requisition.
3. AutoCreate requisition onto a purchase order.
4. Approve and reserve PO (which automatically reverses the requisition funds
   reservation)
5. Receive against the purchase order (either period-end or online accruals)
   and the funds are reversed for the amount received and entered against the
   charge account

Purchasing Setup: Encumbrance Accounting

Setting up encumbrance accounting actually has very few actions that need to be performed in Oracle Purchasing module. The primary level of effort required for encumbrance accounting setup is in the General Ledger module. There is one action that can be taken by PO and it deals with the AP form Financial Options
Here are some quick setup steps for encumbrance accounting. The setup details may differ depending on the business needs. the steps included here are for Release 11

1) Define the Encumbrance Account

    1.1. Navigation in GL: Setup -> Financials -> Flexfields -> Key -> Values
         Navigation in PO: Setup -> Financials -> Flexfields _> Key -> Values
    1.2. Perform a find by entering the following criteria:
         Application: Oracle General Ledger
         Title: Accounting Flexfield
         Structure: <name of a structure to be used>
         Segment: Account
    1.3. Click the Find button.
    1.4. Add a new segment value.
         Value: (enter your own)
         Description: Reserve For Encumbrance

Accounting entries during capitalizing eAM cost to Fixed Asset

The accounting reconcilliation between maintenance expenses from a work order and captalization of work order costs is largely a manual effort

However the same can be automated to some extent if the business process can accomodate a single asset clearing account for all capitalization works initiated from a single EAM org. To do this,

1. Create a separate accounting class which will referenced on capitalization work orders. This accounting class will have all its variance accounts set as the Asset Clearing account.

2. Set the eAM parameters to have the offset account as the Asset clearing account.

3. As a procedure, ensure that work orders are closed (i.e. status of work order is changed to 'Closed') before capitalization is initiated. This will ensure that value is transferred from valuation accounts to variance accounts

Now the accounting entries would be as follows :

Work Order transactions

Dr:     EAM Valuation accounts

Cr:     Mtl Valuation / Resource absorption

Work Order Close

Dr:     Variance account = Asset Clearing account

Cr:     EAM Valuation accounts

Post Mass additions

Dr:     Asset Cost account

Cr:     Asset Clearing account = Offset A/c = Variance account 

Basic shopping flow in iProcurement

Navigate to iProcurement Responsibility (N) Home Page > Shop. Search or select the item to procure and add to the shopping cart. once all the required items are selected to the shopping cart we can check out with any of the three available methods.

Checkout Methods: Comparison
From the user perspective the different checkout methods dictate the amount of information that requesters must enter to complete an order. From the implementation perspective the methods differ in how much help entering information you expect the requester to require. For example, power checkout provides the same access to requisition information as step-by-step, but does so in fewer pages.

Step-by-Step Checkout
Requesters are led step-by-step through entering the details needed to create an order. Requester needs less experience to complete the order process. Defaults details from requester's My Profile, which the requester can override Requires the Review/Submit step

This checkout method is ideal for the

Physical Inventory Counting Process

The Physical Inventory Count allows you to take a stock check on a specific
physical inventory. The system allows you to take a snapshot of the on-hand
figures at a point in time to allow the company to continue processing
transactions without those transaction affecting the results of the stock
take. Later when the stock take figures are entered the program compares the
count figures entered with these 'snapshot' values NOT the current on hand
figures. Adjustments are then entered, approved (if necessary) and posted

Transaction flow

1. Define Physical Inventory 

Allows a physical inventory to be defined and a snapshot of the qty on hand to be taken. The Approval Options
allows the following options:
a. Required for all adjustments - ALL adjustments entered need to be approved
(could be very time consuming!)
b. Not required for adjustments - adjustments do not need approval
c. Required for adjustments out of tolerance - adjustments out of the range of
the approval tolerances need to be approved (the norm!). The Approval
adjustments are also entered on this form and are in the form of quantity

Oracle Inventory Organization Structure (Release 11i )

Oracle Applications uses multiple types of organizations to build the business
execution structure. At the top of the structure is the accounting set of books
SOB), defined in the General Ledger. Next, different types of organizations are
used to further define the organization structure and relationships. All
organizations are defined and updated with the Define Organization form.

Set of Books: A General Ledger SOB, linked to the inventory organization,
controls the financial accounting of inventory transactions. A SOB is made up
of a chart of accounts, a financial calendar, and a currency. The general
ledger secures transactions (journal entries, balances) by SOB.

Legal Entity. A legal entity organization defines the tax and fiscal reporting
level. The legal entity represents the legal company.

Operating Unit: An operating unit organization defines the Purchasing, Order
Entry, Accounts Payable and Accounts Receivable level of operation. An operating
unit may span multiple manufacturing facilities, distribution points and sales
offices, or it may be limited to a single site.

Inventory Organization: Two flavors of inventory organizations are found in
Oracle Applications. They are defined the same, and both are assigned a set
of books, a legal entity organization, an operating unit organization, and a
location. An item master organization is used for item number maintenance and
validation. This master organization serves as a data repository storing items
and item attributes, master level categories and category sets, master level
cross references, and numerous data defaults. On-hand balances, inventory
movements, and other on-going inventory activities are not performed in an item
master organization. Generally, the master organization is used as the
validation organization for Purchasing and Order Entry. It is recommended
that a single item master organization be defined, even in multiple organization,
multiple sets of books environments.

In addition to the item master organization there are one or more non-master
inventory organizations. Like the item master inventory organization, the 

Purchase Order Types In Oracle Purchasing

Purchase Order Types
Oracle Purchasing provides the following purchase order types: Standard Purchase Order, Planned Purchase Order, Blanket Purchase Agreement and Contract Purchase Agreement. 


You can use the Document Name field in the Document Types window to change the names of these documents. For example, if you enter Regular Purchase Order in the Document Name field for the Standard Purchase Order type, your choices in the Type field in the Purchase Orders window will be Regular Purchase Order, Planned Purchase Order, Blanket Purchase Agreement and Contract Purchase Agreement

Standard Purchase Orders
You generally create standard purchase orders for one–time purchase of various items. You create standard purchase orders when you know the details of the goods or services you require, estimated costs, quantities, delivery schedules, and accounting distributions. If you use encumbrance accounting, the purchase order may be encumbered since the required information is known

Blanket Purchase Agreements (BPA)
You create blanket purchase agreements when you know the detail of the goods or services you plan to buy from a specific supplier in a period,

PO Approval Hierarchy Methods

Oracle Purchasing offers three methods to route documents for approval..

1. Position Approval hierarchy
2. Employee/Supervisor approval hierarchy
3. Advanced Approval Support for Requisitions

1. Position Approval hierarchy
Position Hierarchies are hierarchies that have a position relationship. By position, we mean position that are attached to employees. Purchasing utilizes positions as a roadmap to determine how and where documents will be routed once the approval process has been initiated. It is first necessary to have created all positions that are going to be used in the system. Once all positions have been created, it is necessary to build the position hierarchy. Each position has approval limits, so when a purchase order exceeds the limits of the position, the purchase order is forwarded onto the next position in the Hierarchy.

2. Employee/Supervisor approval hierarchy
Employee/Supervisor approval hierarchy uses the employee-supervisor relationships.
To implement this form of approval routing, you need only to define jobs. The job will then serve as the tie to the Approval group, and based on the approval limits from the Approval Group, the Document will either be Approved or Forwarded to the Employees’ Supervisor. If no Supervisor

PO Approval Hierarchy Forward Method

If Position Hierarchy is used and two employees are attached to a particular position, then the application will select the forward-to person based on alphabetical name order.

Below is an example for better understanding.

Abdulla (Clerk) and couple of more clearks report to position Manager (Materials). James and Smith have the position Manager (Materials) attached.

In the above scenario, when Abdulla (Clerk) chooses the Approve button without entering a forward-to person, and the next position above the clerk is the Manager (Materials), the document would be routed to James
James  is selected by the system because the system will choose the employee assigned to the position in alphabetical order, and since James comes before Smith, James is selected. Therefore, unless the clerk selects a specific person to forward the document to, the document will always be routed to the first person alphabetically assigned to the position

Encumbrance / Budgetory Control In Oracle Purchasing

You can define encumbrance accounting or budgetary control in Financial options window:
Navigation: AP or PO ----> Setup--> Organizations --> Financial Options.

In order to use encumbrance accounting or budgetary control, you must install Payables, Purchasing, and General Ledger modules. You may go to encunbrance region to enable encumbrance accounting and to specify the default encumbrance types which Payables module assigns to your invoices, and Purchasing module assigns to your requisitions and purchase orders.

If you enable encumbrance accounting or budgetary control, Purchasing creates
encumbrances when you reserve funds for a requisition or purchase order. If you use the perpetual accrual method in Purchasing, it reverses the purchase order encumbrances when you inspect, accept, and deliver the units. If you are using the periodic accrual method in Purchasing, Payables reverses the purchase order encumbrances when you create accounting

How To Include Only "Inventory items" In a Store at iProcurement?

Complete the following steps to setup a Store for an Internal Items Catalog

• Login to iProcurement Catalog Administrator
• Click on Manage Catalogs
• Create Catalog - Select local Catalog
• Select the checkbox titled " Include items without suppliers in this catalog.  For example, internally orderable items "
• Press Submit
• Press Ok
• Click on Manage Stores
• Click on Create Store
• Name your Store