To submit a supply chain rollup request:The Supply Chain Cost Rollup enables you to roll up costs across multiple organizations, with a mixture of costing methods and currencies, connected to sourcing rules. You can perform either a single-level cost rollup, or a full cost rollup:
A single-level rollup looks only at the first level of the bill structure for each assembly in the rollup - and rolls the costs for the items at this level into the parent. This method does not reflect structure or cost changes occurring at a level below the first level of assemblies. However, it does enables you to generate costs on new assemblies without changing costs on existing subassemblies.
A full cost rollup first performs a bill of material explosion for assemblies. The rollup process builds the cost of assemblies, starting with the lowest level, and works up the structure to top-level assemblies. This method gives you the most current bill of material structure and component costs.
You can use any costing method to roll up costs in inventory organizations. The Supply Chain Rollup process enables you to start from any, single inventory organization.
Every time that you generate the Supply Chain Cost Rollup program, costs are overwritten from previous rollups for the cost type specified.
Sourcing Rules
You can define sourcing rules to simulate costs resulting from those rules. The cost types resulting from the process can be:
Reviewed for simulation purposes
Copied to other inventory organizations
Used for margin analysis reports
Used as the source cost type for a standard cost update
When a sourcing rule in defined in Oracle Planning applications, you can define the make, buy, and transfer rules for a specific rank. The rank determines the priority, with the lower rank having the higher priority. The Supply Chain Cost Rolllup program uses sourcing rules with the minimum rank value. See: Allocating Demand to Suppliers, Oracle Advanced Planning User's Guide.
Reports
The cost rollup process includes the option to print a report. You can select either the Supply Chain Consolidated Bills of Material Cost Report or the Supply Chain Indented Bills of Material Cost Report. You can submit both of these reports when reporting item costs. You also have the option to print a temporary rollup report, which enables you to review the rollup results before changing the cost information.
See: Supply Chain Consolidated Bills of Material Cost Report, and Supply Chain Indented Bills of Material Cost Report
Phantom Items and Assemblies
The cost rollup includes material costs and routing costs of phantom assemblies of higher-level assemblies. This process handles phantom items and produces costs used to set standard costs.
Configure to Order
Configure to Order items use cost type CTO for the rollup calculation. When an item is created by the AutoCreate Configuration process, the cost of the configuration is based on the options selected. Single level rollup calculations for Make and Buy CTO configurations are calculated as follows:
Buy Item Configurations: The configurations use the CTO cost type specified in the profile option, BOM:CTO Buy Cost Type for Configurations. The result of the rollup is the total cost for the configured item.
Make Item Configurations: The cost type does not hold costs for the model and options. Therefore, the rollup is performed based on the valuation cost of the modeled item and optioned items. The cost type is inserted into the CTO cost type.
See: Configuration Item Cost Rollup, Oracle Configure to Order Implementation Manual.
Prerequisites
For cost rollup requests that update changes, you must include the Privilege to Maintain Cost security function as part of the responsibility. See: Cost Management Security Functions.
Define Oracle Bills of Material parameters. If an organization involved in the rollup does not have the necessary parameters set, the program will not run. See: Defining Bills of Material Parameters.
Verify the bill structure before performing a cost rollup. See: Checking for Bill Loops.
Set the profile option, CST:Cost Rollup - Wait for Table Lock, to lock Cost Management tables for the rollup. If the profile option is set to Yes, then the program will continually attempt to lock the tables. If the profile option is set to No, then the program makes 10 attempts to lock tables before ending the request. See: Profile Options and Security Functions
To submit a supply chain rollup request:Navigate to the Supply Chain Cost Rollup Request window.
In the Name field, select a request type option to display the Parameters window. Your choices are:
Supply Chain Cost Rollup - No Report: Rolls up costs and commits them to the database; does not print a report.
Supply Chain Cost Rollup - Print Report: Rolls up and updates costs, creates a report.
Temporary Supply Chain Cost Rollup - Print Report: Rolls up costs but does not update them, creates a report.
In the Parameters window, optionally enter a Description. This can be any descriptive text referencing this request.
Select a value in the Cost Type field.
Cost type determines how the rollup is performed. If an item does not already have cost information in this cost type, costs from the organization default cost type are used. If costs do not exist in the default cost type, then costs from the current organization's valuation cost type are used.
Note: Every time the Supply Chain Cost Rollup program is generated, costs are overwritten from previous rollups for the cost type specified.
See: Defining Cost Types.
Use the Organization and Range fields to specify the list of the top level assemblies to roll up.
Your choices are to use the current organization, or leave this field blank:
If you select the current organization, then the top level assemblies are rolled up from this organization.
If the field is blank, then the top level assemblies are from all organizations are rolled up.
For example, if the Range field is specified as All items, and the Organization field is specified as the current organization, then the rollup is performed with all items, from the current organization, as the top level assemblies.
Optionally select a value in the Assignment Set field.
Once you have defined your sourcing rules and bills of distribution, you assign them to particular items and/or organizations. These groupings are called assignment sets. This is where sourcing strategies are defined for a particular supply chain network. See: Setting up the Supply Chain, Oracle Advanced Planning User's Guide..
If you selected an Assignment Set, select a Buy Cost Type.
If you specified a sourcing rule, all the costs defined in Buy Cost Type are summed in the material cost. For example:
If both the destination and buy cost types are set up as Pending, the process searches for pending costs.
If there are no pending costs, the process then searches for default cost type.
If there are no default costs in the current organization, the process then searches for the current organization's valuation cost type. See: Defining Costing Information.
For configure to order items, select the value for the CTO Cost Type defined in the profile option, BOM:Buy Cost Type for Configurations. See: Configuration Item Cost Rollup, Oracle Configure to Order Implementation Manual.
In the Preserve Buy Cost Details field, indicate if you want the details of the item costs saved. You choices are Yes or No.
If an assignment set is specified in the rollup, then all costs defined in the Buy Cost Type are summed into this level of material cost. This parameter enables you to preserve the buy cost details for elemental and subelemental visibility.
Select a Conversion Type from the list of values. This is the currency conversion type used if currency values need to be converted across organizations.
Select a Rollup Option. Your choices are:
Full cost rollup: Performs a bill of material explosion for assemblies, and then builds the cost of assemblies starting with the lowest level, and works up the structure to top level assemblies.
Single-level cost rollup: Assigns new standard costs to the top assembly, but not to the lower-level assemblies.
Select the Range of items to roll up.
Your choices are: All items, Category, Range of items, Specific item, or Zero cost items.
If you select Zero cost items, the rollup includes zero cost items in the current and the default cost types that have the attribute, Based on Rollup, enabled.
Note: Inactive items are not rolled up unless you select a Specific Item that is inactive.
If you selected a request type that prints a report, then select a report type. Your choices are:
Consolidated: Prints the Supply Chain Consolidated Bill of Material Cost report, which lists total quantities of each component used in the parent assembly regardless of level.
Detail Indented: Prints the Indented Supply Chain Bill of Material Cost report, which lists detailed cost structure by level.
See: Supply Chain Consolidated Bills of Material Cost Report, and Supply Chain Indented Bills of Material Cost Report
If you selected a request type that prints a report - in the Material Detail, Material Overhead Detail, and Routing Detail fields, then indicate if you want these fields to display on the report. Your choices are Yes or No.
If you select Yes, then Material, Material Overhead, and Routing detail subelements display on the report.
Note: If you select No, then you limit the amount of subelement detail and reduce the size of the report.
If you selected a request type that prints a report, then enter the maximum report number of levels to display on the report.
For example, if your assembly had 20 levels and you enter 5 in this field, then the costs for levels 1 through 5 are detailed. The costs for levels 6 to 20 are summarized as previous level costs. The default is the maximum bill of material levels value. See: Defining Bills of Material Parameters.
Enter the Effective Date and time to determine the structure of the bill of material to use in the cost rollup. You can use this to roll up historical and future bill structures using current rates and component costs.
Indicate whether to Include Unimplemented Engineering Change Orders ECOs in the rollup. See: Changing the ECO Status, Oracle Engineering User's Guide.
Optionally, enter an Alternate Bill name for the assembly to roll up, if applicable, for the Range you selected.
For example, if an alternate bill is specified, all items in the range are still rolled up:
The items having an associated bill with that name are rolled up using that bill.
The items that do not have an associated bill with that name will continue to be rolled up using the primary bill.
Optionally, enter an Alternate Routing name for the assembly to roll up, if applicable, for the Range you selected.
For example, if an alternate routing is specified, all items specified in the range are still rolled up:
The items that do have an associated routing with that name are rolled up using that routing.
The items that do not have an associated routing with that name will continue to be rolled up using the primary routing.
Indicate whether to include Engineering Bills in the cost rollup. If you select Yes, assemblies with engineering bills are rolled up in addition to the regular assemblies.
You can select lot size parameters in the Lot Size Option field. Select a lot size multiplier in your cost computations. Your choices are:
Use Existing Lot Size
Specify Lot Size
Use Factor of Standard Lot Size
If the Lot Size Option field has the value of Specify Lot Size, or Use Factor of Standard Lot Size - you can enter a numeric value in the Lot Size Setting field.
Note: When using either the Specify Lot Size or Use Factor of Standard Lot Size, if Lot Size Setting is not specified, or the Standard Lot Size is not specified, then the application uses the existing lot size.
Specify items to roll up:
If you selected Specific Item in the Range field, select an item.
If you selected Category in the Range field, select either a category set or a specific category.
If you select a category set, item costs are rolled up for items associated with this category set. The default is the category set defined for your costing functional area.
If you selected Range of items, enter From and To values to specify the range of items for which to roll up costs.
Choose OK to display the Request window.
Choose Submit to process the rollup.
The Supply Chain Cost Rollup creates the following process flow to calculate costs. The process:
Creates a snapshot of the Sourcing Rules/Bills of Distribution.
Explodes the bill of material for each assembly in the supply chain.
This explosion logic considers sourcing rules captured in the snapshot process. It tracks the item and organization combinations.
Items from multiple sources in the supply chain are merged.
Costs from different sources such as make, buy, and transfer items are merged to the rolled up cost in the destination organization.
Weights are used from the sourcing snapshot.
The costs transferred from other organizations are considered previous level costs, and their elemental visibility is preserved. The buy costs are summed into this level of material cost. You can save the details of the item costs by selecting Yes in the Preserve Buy Cost Details parameter.
Note: User defined costs for the top level assembly are not recalculated during the Supply Chain Rollup program.
Additional markup costs are applied to item costs transferred from other organizations.
This markup is based on the percentage of Transfer Charge defined in Oracle Inventory's Shipping Networks window. The markup cost is rolled as this level of material overhead cost, for the top level assembly, in the destination organization.
For the destination organization, there must be a value in the Default Material Overhead Sub-Element field in the Oracle Inventory's Organization Parameters window in the Costing Information tabbed region.
Example of Process Flow for Supply Chain Cost Rollup
A bill of material structure is defined at Organization 1 and Organization 2. Before the Supply Chain Cost Rollup program is submitted:
Item A (at Organization 1) has a user defined cost of $10, and a buy cost defined as $120.
The unit cost for Item B is $100.
The Unit cost for Item C (at Organization 2) is $80.
The Transfer Charge Type percentage is defined as 10 percent when transferring from Organization 2, to Organization 1. The sourcing rule is defined for Item a in organization 1 as the following:
| Source | Rank | Percentage |
|---|---|---|
| Make at Organization 1 | 1 | 50 |
| Transfer from Organization 2 | 1 | 25 |
| Buy | 1 | 25 |
When a full cost rollup is submitted for item A, the following process flow occurs:
A supply chain bill of material explosion is performed and the low level codes are assigned, The program starts with Item B in Organization 1, and Item C in Organization 2 - and then rolls up the cost for Item A in Organization 2. Then it completes by rolling up and merging costs for Item A in Organization 1.
The costs of Item A at Organization 1 are calculated with a total unit cost of $112. The following information is used::
| Source | Original Cost | Weight | Extended Cost |
|---|---|---|---|
| User Defined | 10 | No re-average | 10 |
| Make | 100 | 50% | 50 |
| Buy | 120 | 25% | 30 |
| Transfer from Organization 2 | 80 | 25% | 20 |
| Markup from Organization 2 | _ | _ | 2 |
See: Standard Request Submission, Supply Chain Consolidated Bills of Material Cost Report, and Supply Chain Indented Bills of Material Cost Report