basics of opm financials (oracle webcast)


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Basics of OPM FinancialsMinky WilhelmOracle Senior Technical Support Engineer

5

Objectives

• To provide an overview of the OPM Financials processes

• To describe the basic flow and the major processes involved in OPM Financials

• To describe the basic troubleshooting information used in OPM Financials

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Reported problem

We are using Actual Costing and we find that our miscellaneous receipts is not included in the item cost. This is a problem since we need to account

for all transactions.

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OPM Financials – 2 parts

• Costing– How much does an item cost?

• Accounting– What are the journal entries for the transactions?

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General FlowBusiness Flow

Transact – Pos, Sos, prod batches

Book transaction / journal entry(subledger journals)

Post to GL

Get/Set Item Costs

OPM Financials FlowTransactions –Pos, Sos, prod batches

Book transaction to subledger journals-Cost Update-OPM Accountitg Preprocessor (Subledger Update in 11i)

Post to GL- Create Accounting

Item Costs-Standard-Actual (PMAC, PWAC, PPAC)-Lot

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Costing

– Standard Costing • Costs are computed based on Recipes/Formulae/Routings

– Actual Costing• Costs are computed based on Actual Transactions

– Lot Costing• Costs are computed at item, org and lot level based on Actual

Transactions

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Standard Costing

• Based on a formula/recipe• A standard cost is pre-set for the raw materials and,

using a formula, these costs are rolled-up to get the product cost

A??

B??

C$1

D$1

E$2

11

Standard Costing – Tech Basic

• Executable name: GMCROLL in 11iGMFROLL in R12

• Major Tables used: -- formula: fm_form_mst_b-- recipe validity: fm_form_eff-- costs written to: cm_cmpt_dtl-- error messages: cm_rlup_msg-- control file: cm_rlup_ctl

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Actual Costing

• Periodic process – not perpetual

• Supported Cost Methods

Period Moving Average Cost (PMAC)

Period Weighted Average Cost (PWAC)

Perpetual Weighted Average Cost (PPAC)

Last Invoice Cost (LSTI)

Last Transaction Cost (LSTT)

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Average Cost

• Takes the actual costs in the transactions for the period and compute the average to arrive at item cost

• Basic formula

Average Cost = Sum of (Trans Qty * Price)-------------------------------------

Sum of Trans Qty

Example:

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PMAC

• Period Moving Average Cost• Includes prior period cost and inventory balance

Period Moving Average cost = (Prev Cost * Prev Qty) + Sum of (Trans Qty * Price)---------------------------------------------------------------------

Prev Qty +Sum of Trans Qty

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Actual Costing – Tech Basic

Executable: GMCACOST (11i), GMFACOST (R12)Major tables used:

-- transaction tables -- IC_TRAN_PND, IC_TRAN_CMP in 11i, -- MTL_MATERIAL_TRANSACTIONS in R12

-- inventory balances -- IC_PERD_BAL in 11i-- GMF_PERIOD_BALANCES in R12

-- cost information written to:-- CM_CMPT_DTL-- CM_ACST_LED

-- errors: CM_ACER_MSG -- control information: CM_ACPR_CTL

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Lot Costing

• Costs are computed at item, org and lot level based on Actual Transactions

• Every lot has a unique cost associated with it and that lot retains this cost until the entire lot is consumed

• Not periodic

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Lot Costing – Tech Basic

• Package: GMF_LOT_COSTING_PUB Filename: GMFPLCRB.pls

• Major tablesgmf_lot_costed_itemsgmf_material_lot_cost_txnsgmf_lot_costsgmf_lot_cost_details

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Item Costs screen• OPM Financials > Item Costs

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Cost RollupNavigation : Standard Costs -> Cost Rollup

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Cost Rollup

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Actual CostingNavigation : Actual Costs-> Actual Cost Process

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Lot CostingNavigation : Lot Costs-> Lot Cost Process

23

OPM Financials – 2 parts

• Costing– How much does an item cost?

• Accounting– What are the journal entries for the transactions?

24

Accounting

Example:

Under Purchasing, received order for item A with qty = 100.Assuming item cost = $2 (for each item)

Accounting entries for this will be:

Dr. Inventory Inspection Account (01-2345-22222-000) 200Cr. Accrued Accounts Payable (01-2345-23333-000 200

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Accounting in R11i

• Cost Update- Creates the cost records to be used by the subledger

• Subledger Update Generates distributions for transactions in Process Orgs

• GL ExportExports subledger data to General Ledger

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Accounting in R11i – Tech Basic

• Cost Update- Executable: CMCCUPD (in R11i), - Records written to: gl_item_cst, gl_item_dtl- Error messages: cm_cupd_msg- Control file: cm_cupd_ctl

• Subledger Update - Executable: GMGUPD - Records written to:

gl_subr_tst (Test Subledger Update)gl_subr_led (Final/Actual Subledger Update)

- Error messages: gl_mesg_tbl- Control file : gl_subr_sta

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Accounting in R11i – Tech Basic

• GL Export- Executable: GMGGL- Records written to: gl_interface- Error messages: gl_updt_msg - Control file : gl_updt_ctl

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Accounting in R12

• Cost UpdateCreates the cost records to be used by the subledger

• OPM Accounting PreprocessorGenerates distributions for transactions in Process Orgs

and feeds data to SLA.

• Create Accounting Creates the Subledger Accounting records which are later onfed to the General Ledger

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Accounting in R12 – Tech Basic

• Cost UpdateCreates the cost records to be used by the subledgerTable names and executable name are the same in R11i and R12

• OPM Accounting Preprocessor- Executable: GMFXUPD - Major tables:

gmf_xla_extract_headersgmf_xla_extract_lines

- Error messages: gl_mesg_tbl- Control file : gl_subr_sta

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Cost Update11i Navigation : MAC-> Cost Update

R12 Navigation : Cost Update

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OPM Accounting PreprocessorNavigation : OPM Accounting Preprocessor

32

Create AccountingReports > Standard > Run > Submit > Create Accounting

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Subledger Accounting

Example:

Under Purchasing, received order for item A with qty = 100.Assuming item cost = $2 (for each item)

Accounting entries for this will be:

Dr. Inventory Inspection Account(01-2345-22222-000) 200

Cr. Accrued Accounts Payable (01-2345-23333-000) 200

ENTITY(eg Purchasing)

JOURNAL LINE TYPE(eg ISP, AAP)

EVENT(eg PO Receipt)

Account Definition Rule (ADR)

Journal Line Definition

How to derive the specific account code

Ties line type and rule

34

Other SLA Information

To complete the SLA picture and tie the account

information to your company and ledger, the JLDs have to be attached

to an AAD which is associated to an SLAM

that belongs to the ledger.

Journal Line Definition

LEDGER

APPLICATION ACCTNG DEFINITION

SUBLEDGER ACCTNG METHOD

35

Basic Troubleshooting Information

• Debug log-- Profile name :

GMF: Concurrent Log Flag (sometimes named 'GMF: Debug Log Level‘)

in R12: 'GMF: Concurrent Debug Flag') -- set profile value to ‘3’-- if profile is missing, refer to Note 230743.1 (Using Debug mode to

analyze OPM Financial Processes)

• Error messages-- as seen in the View Error Messages screen of a process-- export from screen or dump through SQL query-- should come from the same run as the debug log

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• Versions-- Report using Diagnostics: Apps Check

-- or through the adident or strings command in Unix:

strings $GMF_TOP/bin/GMFACOST | grep Head | sort

-- for forms, the About Oracle Applications information can be used

-- later versions of the OPM Financials processes in R12 already include the important file versions in the log

37


• Trace file-- For forms: These steps are same in 11i and R12.

Navigation : Menu-> Help ->Diagnostics -> Trace >Trace with Binds

-- For concurrent processes:A. Responsibility -> System Administrator ->Program ->

Define ->Query for the Program name. Enable the checkbox for trace in the Request. Save the record. Run process.

B. Initializing a session trace using profile option: 'Initialization SQL Statement - Custom'

Refer to Note 787724.1 (How to Obtain Trace with Binds in E-Business Suite) for more information

38

Other Troubleshooting Information

• Incorrect item cost-- what is the computed cost-- what is the expected cost-- for Actual Costing:

output of scripts (ac_dtls.sql for 11i,r12_ac_item_cost_details.sql for R12)

• If issue involves a batch cost (Actual Costing):-- has batch been relayered?-- output of Batch Cost Details Report

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Other Troubleshooting Information

• For accounting issues, either in 11i (Subledger Update) or R12 (OPM Acctg. Preprocessor):

Run the process for a particular source and small date range to include above transaction. This way we have the smallest data that replicates the issue.

• If errors are encountered in SLA (ie missing account, no code combination), check the ADR against the OPM Preprocessor generated data


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