Cost Rollup BasicsAuthor: Laura Miller

Overview of the process:

The Cost Rollup process explodes the Bill of Material and routing. It calculatesthe cost of the required components, subassemblies, resources, and overheads.This calculation starts at the bottom of the assembly and moves up to the toplevel.

Cost Rollup is done by cost type and an effective date is required. The defaultfor this is the current date and time.

For manufactured items, the Bill of Material and routing is created first, then acost rollup is done.

This is how an item gets costed. The costs are not defined when the itemis defined.

For purchased items, the Item Cost screen is used.If no transactions exist, then the frozen cost can be entered and saved.

If there are transactions, then a pending cost must be entered and thenstandard cost update is run to set the cost to frozen (standard).

For Oracle Applications Release 10.7 and 11, Phantom assemblies are notincluded in cost rollups.

If the supply type on the bill of material is set at phantom, the cost rollupwill include the routing costs. The parent assembly, though, will notinclude the routing costs of that subassembly in the cost of the parent.

If the supply type is changed from a phantom, then the cost rollup willinclude the subassembly routings in the parent assembly previous levelcosts.

For Oracle Applications Release 11.5.X, Phantom assemblies can be included incost rollups.

The assemblies can be costed for Work in Process transactions, in discreteand repetitive environments and for standard and average costingorganizations.

These assemblies can be set up as any other assembly to includeresources and overhead costs.

The Phantom assemblies can be the parent assembly as well as the childassembly. The cost rollup can include the resources and overheads fromboth levels.

There are two Bill of Material parameters that are used to allow the Phantomassemblies to be included in the cost rollup:

“Inherit Phantom Operation Sequence” - this parameter controls theinheritance of the parent’s operation sequence;

“Use Phantom Routings” - this parameter determines if the resources andoverheads are recognized for costing

If these parameters are changed after a job is created and a rollup or anupdate occurs, incorrect variances can be created.

Steps to rollup costs:

Cost/Item Costs/Assembly Cost RollupThis can be completed without a report, with a report or as a report onlywith none of the changes being saved.

Cost Rollup - No Report (rolls up costs, commits to the database,no report is printed)

Cost Rollup - Print Report (rolls up costs, commits to database,prints report)

Temporary Rollup - (rolls up costs, does not commit to database,prints report)

To allow the ability to rollup costs to the database, the Privilege toMaintain Cost function is included as part of the user responsibility.

To allow the ability to temporarily rollup costs and print the report (butnot commit to the database), the Privilege to View Cost function shouldbe added to the users responsibility.

Cost Rollup Parameters

1---Enter the cost type to rollup costsOnly pending costs can be rolled up. Frozen costs are then updated fromthe pending cost.

Cost type options include determining-if the bill information is to be saved,-if the component yield is to be included in the cost,-if the cost type defaults to itself or another cost type,-if the previous level information for cost elements, sub-elements, ---operations and activities.

2---Choose a full or single level optionFull Cost Rollup option -

This is a Bill of Material explosion for the assemblies to determinethe structure to the lowest level off the assembly. Once the bill isexploded, the costs are built for the assembly from the lowest tothe top level.

This offers the most current cost available for the assemblies.

Note: Before running the cost rollup be sure there are no loops in the bill.

Single Level Cost Rollup option -This looks at only the top level of the bill for each assembly. Thesecosts are then rolled into the parent assembly.

This option is used to assign costs to new assemblies where thelower levels are not rolled up. This would allow generation ofcosts on new assemblies without changing the costs on existingsubassemblies.

This option can also be used to revalue the lower levels whenperforming the cost update.

3---Choose range of itemsAllCategoryRangeSpecific --- This parameter must chosen to rollup inactive itemsZero --- This parameter includes zero cost items in the current and defaultcost types that have based on Rollups flags checked

4---Print ReportConsolidated Bill of Materials --- The consolidated report shows thequantities of each component used in the parent assembly

Detail Indented Bill of Materials --- This indicates if material detail andmaterial overhead subelements are to be included; if you are includingrouting detail (resources, outside processing, overhead subelements) onthe report; what number of levels to display on the report

5---Effective DateThe default is current date

6---Include unimplemented ECO’sThe default is no

7---Choose Alternate BillWhen choosing this parameter, the primary bill will NOT be rolled up

8---Choose Alternate RoutingWhen choosing this parameter, the primary routing will not be rolled up

9---Specific items-Enter the single item-Enter the category set or specific category --- the default is the categoryset defined for the costing functional area-Enter a range of items

Tables used for the Cost rollup process

BOM_EXPLOSION_TEMPCST_EXPLOSION_TEMPBOM_LISTSCST_ROLLUP_DELETE_TEMPBOM_SMALL_EXPLOSION_TEMP

The concurrent program Delete Temporary Rollup Data (CSTCSROL) cleans theBOM_EXPLOSION_TEMP table after the cost rollup.

If the table is full because of various reasons, i.e., the rollup was canceledbefore it completed, then errors will occur.

Run cstcsrol.sql at the command prompt. This should resolve the issue.If it doesn’t, more meaningful error messages will occur here.

Performance issues:

“Cost rollup takes hours to complete”Apply patches 464107 and 674267. Apply these patches in this order to getto later versions cstcsrol.sql and cstrbicr.rdf. Then rerun cost rollup.

If still having problems, check the extents size for the tables. If at 50 whenthe error occurred it can be safely set to about 121.

If still having problems, get trace file with timed statistics. Verify theexpected performance.

Common Cost rollup errors:MSG-01999 BOMPCEXP ORA-6502REP-1825 Before report trigger returned FalseAPP-969 Program was terminated by Signal 1APP-1825 Concurrent manager got error

These errors can indicate that max extents need to be increased.

MSG-01999 CST_LOCK_FAILED_CCIDREP-1825 Before Report trigger returned false

These errors indicate that the cost tables have a lock on them. Clear thelocks and rerun the cost rollup.

Only one cost rollup can occur at a time. If multiple rollups for single items arebeing run in parallel, this error will occur repeatedly.If trying to run two or more rollups at the same time, while one of the rollupshas the tables locked, the other rollup will wait and try to lock the table 10 timesand then error out.

Cost Rollup and Indented Bill of Materials are designed to run together butthere can be overlap of the clearing of the temp tables that can cause the tables tolock and the error to occur.

Troubleshooting

No Cost for Manufactured Items:Check these: BOM/Routing exists for the item

ItemCost screen è Based on Rollup = Yes Inventory Asset Value = Yes

WIP = Build in WIP = Yes (Org)

Item Attributes è Main Status = Active (or similar) Costing Cost Enabled = Yes (Master)

Item assigned to organization

No Cost for Purchased Items:Check these:

ItemCost Screen è enter a pending cost and perform a standardcost updateif unable to enter pending cost, set Use Defaultcontrols = NO and then enter a pending costand run standard cost update again.

BOM Structure è be sure the Include in Rollup flag is checked

**if transactions exist for the item, then you will not be allowed to enter a frozen(standard) cost***

Doubled Costs:If there are costs in the (previous level) and in the user defined section(this level), costs can double.

This happens if you change a cost type for an item from based on rollupto not based on rollup and you don't delete the previous level costs, thenwhen you add your user defined costs (this level), you will get both costsrolled up together.

One way to remove the rolled-up costs from the previous level is to setBased on Rollup to YES, click on save, then set Based on Rollup = NO.

At this point you will be asked if you want to delete the rollup costs, clickon yes. Now you should have only your user defined costs(this level).

Cost Rollup/range of items:The item status attribute cannot be the same as the BOM Ready to Deletestatus parameter . If those two codes are the same, then Cost Rollupassumes that you really do not want those rolled up.

To verify this:Compare Inventory/Item/Org items/main alternative

region…. item status fieldto theBom/Setup/Parameters…active status field underthe configuration options.

If they both say the same value (i.e. Active) then when Cost Rollupruns, that item will be skipped. However, you could run theRollup for that specific item and it will work.

The easiest way to fix this problem is to change status for the bomparameter to some other code (i.e. obsolete or inactive for instance).

Useful information to resolve rollup problems:

--logfile --parameters used--performance problem: trace file with timed statistics