Inter-Organization Transfers in Oracle Apps

Inter-Organization Transfers

You can transfer items directly from one organization to another, or you can transfer items through intransit inventory. Intransit inventory represents inventory items that has not yet arrived at the receiving organization.

Elemental Cost Visibility Option

Note: This functionality will be supported in a future release that includes the Oracle Order Management product.

You have the option to set elemental cost visibility during inter-organization transfers to preserve the sending organization's elemental costs or to summarize all elemental costs into the material cost element. This option is enabled by the Elemental Visibility Enabled check box on the Main tab in the Shipping Networks window. This option is available for each line in the shipping network, regardless of direction. See

Average and Standard Costing in Oracle Apps

Standard and Average Costing Compared

Cost Management offers two perpetual costing methods: standard costing and average costing.

Average costing is used primarily for distribution and other industries where the product cost fluctuates rapidly, or when dictated by regulation and other industry conventions. Average costing eliminates the need to set standards. Average costing allows you to:

value inventory at a moving weighted average cost

track inventory and manufacturing costs without the requirement of having predefined standards

determine profit margin based on an actual cost method

measure the organization's performance against historical costs

include all direct costs of manufacturing an item in that item's inventory cost

Standard costing is used for performance measurement and cost control. Standard costing allows you to:

Defining Costing information in Oracle Apps

Defining Costing Information

   To define costing parameters and accounts:

1. Navigate to the Organization Parameters window.

2. Select the Costing Information tabbed region.

The costing organization that controls the costs in your current organization and the costing method are displayed. These fields are enterable only when you use this window for the first time during system setup. The costing organization can be the current organization itself (thus, it controls its own costs), or it can be the Item Master organization.

Oracle apps Cost Structure

Cost Structure

A cost structure is the collection of definitions and methods used to cost inventory, bills of material, and work in process. The cost structure is composed of:

Organizations

Cost organizations and shared costs

Cost elements

Subelements

Activities

Basis types

General Ledger accounts

Inventory Organizations