Oracle Outside Processing

1
Oracle Outside Processing

• Rob Pierson
• DARC Corporation
• 11-7-2005

2
Agenda

• Introductions
• Overview
• Setup
• Execution
• Costing
• QA

3
Overview
What is Outside Processing?
A means of providing supplier-sourced components
and processes as an integral part of the
manufacturing process
4
Overview

• Outside processing (OSP)
• Consists of the use of inventory items and
  resources to model supplier-sourced services
• OSP resources are used to schedule and cost
  supplier-sourced services within manufacturing
  routings
• OSP allows for routing operation steps to be
  converted into purchase requisitions wherein the
  req line item is the OSP item
• WIP automatically requisitions material and
  purchase orders are charged directly to work
  orders
• Close loop, fully integrated solution

5
Overview

• OSP Features
• Multiple OSP operations on a work order and
  multiple OSP resources per operation
• Supplier provided components are included in BOM
  and referenced as supply type supplier
• Automatic requisition generation
• Full tracability of work orders on purchase
  orders, receipts, receiving transactions
• Automatic resource charging and move transactions
• Automatic work order completions

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Overview OSP Integration
OracleInventory
OracleBills of Material
Oracle Mobile Supply Chain
Oracle Cost Mgmt
Oracle Outside Processing
Oracle Purchasing
Oracle Work in Process
7
Setup Inventory

• Item Master
• Create OSP item using item template _at_Outside
  Processing

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Setup Inventory

• Item Attributes
• Item Attributes

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Setup Inventory

• Outside Processing Unit Type
• Assembly OSP resource charges are based on the
  work order quantity
• Resource OSP resource charges are based on the
  work order quantity x the resource run rate
• List Price
• Enter a list price

10
Setup Resources

• Outside Processing Resource

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Setup Resources

• Standard Costing Considerations
• Type Currency
• UOM Dollars
• Average Costing Considerations
• Type Amount
• UOM Each
• Department Locations need to be setup

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Setup Routings

• Operation Resources

13
Setup BOM

• Supply Type Supplier

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Setup WIP

• Shop Floor Status
• Allow Moves Unchecked

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Setup WIP

• WIP Parameters

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Setup WIP

• WIP Parameters

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Setup Cost

• Cost Rollup

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Execution WIP

• Create and Release WIP Job

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Execution WIP

• Perform Move Operation
• Move material from operation 10, Queue, to
  operation 10, To Move
• Perform transaction save
• Remember, WIP Parameter
• Requisition Creation Time _at_ Operation

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Execution WIP

• Perform Move Operation

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Execution WIP

• WIP Components

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Execution WIP

• WIP ComponentsSupplier

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Execution Purchasing

• Perform Requisition Import

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Execution Purchasing

• Perform Requisition Import

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Execution Purchasing

• WIP Enable Outside Processing
• Yes Enable OSP workflows
• No Disable OSP workflows

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Execution Purchasing

• Requisition Summary

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Execution Purchasing

• Requisition Summary
• OSP item list price x work order assembly
  quantity

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Execution Purchasing

• Requisition Summary
• Approved Status

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Execution Purchasing

• AutoCreate Purchase Order Approve

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Execution Purchasing

• AutoCreate Purchase Order Approve

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Execution Receiving

• Receipts

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Execution Receiving

• Receipts Outside Services Tab

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Execution Receiving

• Receiving Transaction Summary

34
Costing WIP

• Resource Distribution at Standard
• Resource Type Currency (USD)
• Outside Processing Unit Type Assembly
• Operation Resource Usage 5 (based on resource
  UOM)
• Assembly Quantity 10

Resource Distribution 10 units x 5/unit 50
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Costing WIP

• Purchase Order Pricing
• List Price .60
• Outside Processing Unit Type Assembly
• Assembly Quantity 10

PO Extended Price 10 units x .6/unit 6
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Costing WIP

• Outside Processing Charging Variances
• Differences between the standard resource charge
  and the actual OSP purchase price are are charged
  to the OSP variance account

01-000-1450-0000-000 50 Debit to OSP
inventory valuation 01-540-1430-0000-000 25
Debit to Overhead inventory valuation 01-540-1450
-0000-000 lt44gt Credit to OSP variance
account 01-540-7405-0000-000 lt25gt Credit to
Overhead Absorption account 01-540-1410-0000-000
lt6gt Credit to OSP Absorption account
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Costing WIP

• WIP Value Summary

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Costing WIP

• WIP Value Summary Distributions

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Costing WIP

• View Resource Transactions

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Costing WIP

• View Resource Transactions

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Costing WIP

• View Resource Transactions

42
Costing WIP

• View Resource Transactions Distributions

43
Costing WIP

• View Resource Transactions Distributions

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Questions Answers
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Oracle Outside Processing