Automation of Expense

Allocation in Oracle 12.1.3

Balaranjith

Raj Gajrani

Date: November 8, 2013

CO
Performance(Mar12)

About Atul Ltd

Chemical company based in Gujarat
Went live with 12.0.6 in 2009 and 12.1.3 in Dec12
Modules : FIN, PO, OM & OPM
7 business divisions 95 OPM enabled plants
2752 products produced using 1179 intermediates
and 901 raw materials in 2012-13 year in 68973
batches

CO
Performance(Mar12)

Need for Allocation

Automation
PMAC
Manual Activity
Time Consuming To co-ordinate with all
business divisions
Chances of Errors due to volume
Repetitive Efforts for Generating Cost same
process to be repeated every month
Delay in Closure of Books of A/c
CO
Performance(Mar12)

Steps for Automation of

Allocation Process
Defining Mass Allocation Formula
Custom Form For Recording Standard Per Unit
Usage
Defining Expense Allocation Codes
Mapping of Allocation Codes with Organizations
Defining Expense Allocation Basis
Defining Expense Allocation Expenses
Custom Program For Deriving Item wise
Allocation Basis
CO
Performance(Mar12)

Defining Mass Allocation

Formula
Navigation: GL Super User -> Journals -> Define -> Allocation

CO
Performance(Mar12)

Defining Mass Allocation

Formula
Navigation: GL Super User -> Journals -> Define -> Allocation -Formulas

CO
Performance(Mar12)

Custom Form For Recording

Standard Per Unit Usage
Navigation: OPM Financials -> Setup -> Actual Costs -> Expense Allocations -> Standard

CO
Performance(Mar12)

Defining Expense Allocation Codes

& Mapping with Organizations
Navigation: OPM Financials -> Setup -> Actual Costs -> Expense Allocations -> Codes

CO
Performance(Mar12)

Defining Expense Allocation Basis

Navigation: OPM Financials -> Setup -> Actual Costs -> Expense Allocations -> Basis

CO
Performance(Mar12)

Defining Expense Allocation Expenses

Navigation: OPM Financials -> Setup -> Actual Costs -> Expense Allocations -> Expenses

CO
Performance(Mar12)

Custom Program For Deriving

Item wise Allocation Basis
Brief Logic
Org wise, Item wise Production Quantity
Item-wise Expenses based on production quantity
* Standard usage per unit
Apportioning with actual expenses and generation
of Item wise allocation basis
Updating/Inserting records in interface table

CO
Performance(Mar12)

Monthly Steps
for Allocation Process
Creation of Statistical Journal Voucher
Generation of Mass Allocation Entries
Generation of Item wise Allocation Basis (execution of
Custom Program)
Execution of Interface package
GMF_AllocationDefinition_PUB for dubbing
expenses in base table
Execution of OPM Cost Allocation Process
GL Expense Allocation Definition Report for
Verification.
CO
Performance(Mar12)

THANK YOU

CO
Performance(Mar12)