Automation of Expense

Allocation in Oracle 12.1.3

Balaranjith
Raj Gajrani

Date: November 8, 2013

CO
Performance(Mar’12)
 About Atul Ltd

• Chemical company based in Gujarat

• Went live with 12.0.6 in 2009 and 12.1.3 in Dec-
12
• 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(Mar’12)
 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(Mar’12)
 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(Mar’12)
 Defining Mass Allocation
Formula
Navigation: GL Super User -> Journals -> Define -> Allocation

CO
Performance(Mar’12)
 Defining Mass Allocation
Formula
Navigation: GL Super User -> Journals -> Define -> Allocation -Formulas

CO
Performance(Mar’12)
 Custom Form For Recording
Standard Per Unit Usage
Navigation: OPM Financials -> Setup -> Actual Costs -> Expense Allocations -> Standard

CO
Performance(Mar’12)
 Defining Expense Allocation Codes
& Mapping with Organizations
Navigation: OPM Financials -> Setup -> Actual Costs -> Expense Allocations -> Codes

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Performance(Mar’12)
 Defining Expense Allocation Basis
Navigation: OPM Financials -> Setup -> Actual Costs -> Expense Allocations -> Basis

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Performance(Mar’12)
 Defining Expense Allocation Expenses
Navigation: OPM Financials -> Setup -> Actual Costs -> Expense Allocations -> Expenses

CO
Performance(Mar’12)
 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(Mar’12)
 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(Mar’12)
 THANK YOU

CO
Performance(Mar’12)