Note: This document provides high level instructions to execute the setups & transaction

flows for the use cases discussed in the Cost Management Workshop. It is intended for the
workshop attendees only and is not meant to be consumed independently.

Note: There are multiple participants working on the same environment. So, name your
entities uniquely (for ex, prefix with your initials) to avoid stepping on each other’s objects.

Note: Passwords for all the users is the same as your student user (SCMxx.Student)
password. There are multiple uses working on the same environment. Please DO NOT
change passwords of any users other than the one that is assigned to you.

1. Receipt Accounting

Please refer to Lessons 3 & 4 in CostManagement_ActivityGuide_Reference.pdf for this lab.

2. Cost Accounting Setup

Costing Setups (Replace XX with the student ID)

• Login as your student user

• Security Console – Assign the role “Cost Accountant” to your user
• Manage Data Access for Users –
o For the student user and role “Cost Accountant”, assign the Reference Data
Set as “Common Set”
o For the student user and role “Cost Accountant”, assign the Cost Organization
as “US Operations”
o For the student user and role “Cost Accountant”, assign the Business Unit as
“US1 Business Unit”
• Create a new Secondary Ledger – Navigation: Financials > General Ledger > Manage
Secondary Ledgers (Scope: US Primary Ledger)
o Name – XX_US_Sec_Ledger; Chart of Accounts – US Chart of Accounts;
Accounting Calendar - AccountingMMYY; Currency - USD; Accounting
Method - ; Data Conversion Level – Subledger
• Specify Ledger Option for the new Secondary Ledger – (Scope: Primary Ledger - US
Primary Ledger; Secondary Ledger - XX_US_Sec_Ledger)
o First Opened Period – 04-21; Journal Language – US (American English);
Retained Earnings - 101.10.33100.000.000.000
• Manage Cost Organization – Review the cost organization: Name – US Operations
• Manage Cost Books – Create 2 cost books: XX_Secondary, XX_Reporting. For
Primary reporting, we will be using the Financial Cost book already available
• Manage Cost Organization Relationships – Attach the 2 cost books created to the
Cost Organization – US Operation

Cost Book Ledger Create Accounting

XX_Secondary XX_US_Sec_Ledger Yes
XX_Reporting No

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 The Financial cost book is already associated to the US Primary ledger and the same
will be used for the purpose of primary reporting.
• Manage Cost Profile – Create the cost profile for Actual and Average Cost
o Cost Profile - XXActualCost-Asset; Cost Method – Actual Cost; Valuation
Structure Code – InvOrg-Asset; Valuation Structure Type – Asset
o Cost Profile - XXAverageCost-Asset; Cost Method – Perpetual Average;
Valuation Structure Code – InvOrg-Asset; Valuation Structure Type - Asset
• Manage Default Cost Profile – Create a default cost profile for each combination of
cost organization and cost book

Cost Cost Book Asset Cost Profile New Item

Organization Profile Creation
US Operations Financial XXAverageCost-Asset Yes
US Operations XX_Secondary Standard-Asset Yes
US Operations XX_Reporting XXActualCost-Asset Yes

• Product Information Management - Create an Item: XX Item and assign it to the

inventory organization “002” – Atlanta
• Cost Accounting – Manage Cost Scenarios
o Create a cost scenario – Scenario: XX_Secondary_Scenario; Cost
Organization: US Operations; Cost Book: XX_Secondary; Scenario Type:
Regular Items;
o Manage Standard Costs – Create a standard cost for the item
o Publish the standard cost scenario
• Cost Accounting – Create Cost Accounting Distributions: Create a run control
XX_Operations and include the cost organization “US Operations” and all the 3 cost
books

End-to-End Flow: Purchase Order to Invoice (Replace XX with the student ID)
• Login as calvin.roth
• Create PO (Proc BU = US1 Business Unit, Req BU = US1 Business Unit; Supplier =
Advanced Corp; Site = AC US1)
o XX Item
▪ Quantity = 10, Price = 100 USD
▪ Inventory Organization = Atlanta, Destination Type = Inventory, Match
Approval Level = 3-Way, Invoice Match Option = Receipt, Receipt
Routing = Standard receipt
o Accrual, Charge & Variance Accounts are populated

• Login as JENNA.SANCHEZ
• Receive PO
o Supply Chain Execution > Inventory > Receipts
o Query PO and Receive the line
• Deliver PO
o Supply Chain Execution > Inventory > Receipts
o Query PO and Deliver the line

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 • Login as your student user
• Run the ESS Job “Transfer Transactions from Receiving to Costing”
• Run the ESS Job “Create Receipt Accounting Distributions” – Bill to Business Unit: US1
Business Unit
• Receipt Accounting – Review Receipt Accounting Distribution.
o Query the distribution generated.
o Receiving Inspection account will be debited, and Accrual account will be
credited
• Run the ESS Job “Transfer Transactions from Inventory to Costing”
• Run the ESS Job “Create Cost Accounting Distributions” – Run Control: XX_Operations
• Cost Accounting – Review Cost Accounting Distribution.
o Query the distribution generated for each of the cost books.
o Inventory account will be debited, and Receiving Inspection account will be
credited.
o For the Financial and Reporting cost books, the amount will be the PO price
o For the Secondary cost book, the amount will be the standard rate set in the
cost scenario

• Login as Casey.Brown
• Invoice Workarea
o Create an invoice by matching to the above created purchase order
o Quantity = 10, Price = 110 USD
• Validate and Account the invoice
o View the accounting of the invoice.
o Accrual account will be debited, Invoice Price Variance account will be debited,
and liability account will be credited
• Run the ESS Job “Transfer Costs to Cost Management” – Business Unit: US1 Business
Unit

• Login as your student user

• Run the ESS Job “Transfer Transactions from Receiving to Costing”
• Run the ESS Job “Create Receipt Accounting Distributions” – Bill to Business Unit: US1
Business Unit
• Receipt Accounting – Review Receipt Accounting Distribution.
o Query the distribution generated.
o Receiving Inspection account would be debited, and Accrual account will be
credited for the amount equivalent to the invoice price variance
• Run the ESS Job “Transfer Transactions from Inventory to Costing”
• Run the ESS Job “Create Cost Accounting Distributions” – Run Control: XX_Operations
• Cost Accounting – Review Cost Accounting Distribution
o Query the distribution generated for each of the cost books
o For the Financial and Reporting cost books, Inventory account would be
debited, and Receiving Inspection account will be credited for the amount
equivalent to the invoice price variance
o For the Secondary cost book, Purchase Price Variance account would be
debited, and Receiving Inspection account will be credited for the amount
equivalent to the invoice price variance

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Landed Cost Management

1. Login as calvin.roth
2. Copy PO 162752
3. Submit new PO and note PO number

4. Login as joanna.johnson
5. Supply Chain Execution > Receipt Accounting > Manage Landed Cost Processes
6. Submit ‘Prepare PO Data’ and wait for the process to complete
7. Manage Trade Operation Templates
8. Review ‘Basic Charges’ template including the Charges and various settings
9. Manage Trade Operations > Create Trade Operation > Create from Template
10. Choose ‘Basic Charges’ template to create a new TO
11. Name = MidtownTOXX (‘XX’ is your initials)
12. Add Charge Reference to Line 2 - Insurance
a. Name = Insurance
b. Value = TO-XX (‘XX’ is your initials)
c. Auto Associate is checked
13. Click on “Associate Default Material Purchase Orders” button
14. Click on ‘+’ button to add PO. Search for PO created earlier and select the lines
15. PO Schedules are copied onto TO
16. Actions > Update Status > set to ‘Open’
17. Actions > Allocate Charges

18. Login as peter.wilson

19. Supply Chain Execution > Inventory Management > Receipts > Receive Expected
Shipments
20. Search for PO created earlier and receive the lines (sub-inventory = Stores)

21. Login as joanna.johnson

22. Tools > Scheduled Processes > Run “Transfer Transactions from Receiving to
Costing”
23. Receipt Accounting > Manage Landed Costs Processes > Submit ‘Allocate Charges’
24. View Item Landed Cost

25. Login as roger.bolton

26. Create Invoice BU = US1 Business Unit, Supplier = GE Capital, Amount = $6.57
27. Line Amount = 6.00, Ship-To = Chicago, Landed Cost = enabled
28. Add Landed Cost Charges; Charge Name = Insurance; Reference Type = Insurance;
Value =<same as specified on TO charge in step 12>
29. Validate, Account & Post the Invoice
30. Submit ‘Transfer Costs to Cost Management’ for ‘US1 Business Unit’

31. Login as joanna.johnson

32. Supply Chain Execution > Receipt Accounting > Manage Landed Cost Processes
33. Submit “Prepare Invoice Data”
34. Manage Charge Invoice Associations > Search > your invoice association status is
New

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 35. Manage Landed Costs Processes > Submit ‘Associate TO Invoice process’
36. Manage Charge Invoice Associations > Notice that your invoice is associated with
your TO
37. Open Trade Operation > Actions > Allocate Charges
38. Review that your Trade Operation now has Estimates & Actuals.

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3. Supply Chain Financial Orchestration

1. Login as steve.nix
2. Supply Chain Execution > Financial Orchestration > Review the following setups:
3. Manage Financial Orchestration Flows > Query for “SCM-00002” Flow
4. Note that Shipping BU = Supremo CH Business Unit & Selling BU = Supremo US
Business Unit
5. Sales order is created in “Supremo US Business Unit” while the shipping will be done
from “Supremo CH Business Unit”
6. Review ‘Transfer Pricing Rule’ and ‘Documentation and Accounting Rule’ on the flow
7. Manage Profit Center Party Relationships > Review the entries for US & CH business
unit

8. Login as karin.duerr
9. Order Management > Create Sales Order
a. Customer = Melissa Turner
b. BU = Supremo US Business Unit
c. Item = SUPREMO5000
10. Add a line and Submit
11. Order goes to Awaiting Shipping status

12. Login as julia.egger

13. Supply Chain Execution > Inventory Management > Shipments > Manage Shipping
Lines
14. Query your Sales Order > Actions > Pick Release
15. Once processes complete, Manage Shipments > Actions > Ship Confirm

16. Login as steve.nix

17. Supply Chain Execution > Financial Orchestration
18. Monitor Financial Orchestration Execution > Query Business Process Type =
Shipment; Status = In Progress
19. View the event raised and the associated tasks by clicking on ‘View Tasks’

20. Logged in as ‘petra.bayer’

21. Run ‘Transfer Transactions from Inventory to Costing’ for ‘E360CH OPERATIONS’
cost org
22. Run ‘Create Cost Accounting Distributions’ for ‘E360CHOPERATIONS’ run control

23. Logged in as steve.nix

24. Run ‘Transfer Transactions from Receiving to Costing process’ for “Supremo US
Business Unit”
25. Run ‘Create Receipt Accounting Distributions’ for ‘Supremo US Business Unit’
26. Run ‘Transfer Transactions from Inventory to Costing’ for “E360 US Operations”
cost org
27. Run ‘Create Cost Accounting Distributions’ for ‘E360USOPERATIONS’ run control

28. Logged in as ‘mae.jadin’

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 29. Run ‘Import AutoInvoice’ with BU = Supremo CH Business Unit & Transaction
Source = ORA_Supply Chain Financial Orchestration

30. Logged in as ‘alani.walker’

31. Run ‘Import Payables Invoices’ with BU = Supremo US Business Unit & Source =
Supply Chain Financial Flow Orchestration

32. Login as steve.nix

33. Supply Chain Execution > Financial Orchestration > Query your event
34. Review the status of the tasks on the Orchestration event

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4. Discrete Manufacturing Costing

Discrete Manufacturing Setups (Replace XX with the student ID)

• Login as your student user
• Product Information Management - Create the Items: XX_Product, XX_COMP1,
XX_COMP2, XX_COMP3, XX_COMP4 and assign it to the inventory organization “002”
– Atlanta
• For the item XX_Product, create an item structure with the following combination:
o 1 quantity of XX_COMP1
o 1 quantity of XX_COMP2
o 2 quantity of XX_COMP3
o 1 quantity of XX_COMP4

• Login as JENNA.SANCHEZ
• The Business Unit for the activity used will be US1 Business Unit and the inventory
organization will be 002 – Atlanta. Go to Supply Chain Execution > Work Definition
for the below configurations.
• Manage Work Areas – Create the work area “XXTablet Assembly”
• Manage Production Resources – Create the following resources:

Name Type Usage UOM Costing Enabled

XXAssembler Labor Hr Yes
XXMachine Equipment Hr Yes
XXTester Labor Hr Yes
XXPacker Labor Hr Yes

• Manage Work Centers – Create the following Work Centers:

Name Work Area Resource

XXAssembling XXTablet Assembly XXAssembler, XXEquipment
XXTesting XXTablet Assembly XXTester
XXPacking XXTablet Assembly XXPacker

• Manage Standard Operations – Create the following operations:

Operation Name Work Center Count

Type Point
In-house XXAssembling XXAssembling Yes
In-house XXTesting XXTesting Yes
In-house XXPacking XXPacking Yes

• Manage Work Definitions – Create a work definition for the item XX_Product
o Include the 3 standard operations created
o In the Standard Operations XXAssembling, include the items – XX_COMP1,
XX_COMP2, XX_COMP3 and include the resources – XXAssembler and
XXMachine
o In the Standard Operations XXTesting, include the resource – XXTester

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 o In the Standard Operations XXPacking, include the item – XX_COMP4 and
include the resource – XXPacker

• Login as your student user

• Cost Accounting – Manage Cost Scenarios - Create the following cost scenarios:
o Scenario: XX_DM_Pri_Scenario; Cost Organization: US Operations; Cost
Book: Financial; Scenario Type: Regular Items; Rollup Scope: Selected Items
– XX_Product
o Scenario: XX_DM_Sec_Scenario; Cost Organization: US Operations; Cost
Book: XX_Secondary; Scenario Type: Regular Items; Rollup Scope: Selected
Items – XX_Product
o Scenario: XX_DM_Rep_Scenario; Cost Organization: US Operations; Cost
Book: XX_Reporting; Scenario Type: Regular Items; Rollup Scope: Selected
Items – XX_Product
• Manage Standard Costs – Create standard cost for the items for the secondary cost
book:

Scenario Item Valuation Cost Unit

Unit Element Cost
XX_DM_Sec_Scenario XX_COMP1 US\-001-002 MATERIAL 100
XX_DM_Sec_Scenario XX_COMP2 US\-001-002 MATERIAL 80
XX_DM_Sec_Scenario XX_COMP3 US\-001-002 MATERIAL 90
XX_DM_Sec_Scenario XX_COMP4 US\-001-002 MATERIAL 20

• Manage Resource Costs – Create resource rates for resources for all the 3 cost books:

Scenario Plant Resource Cost Expense Rate

Element Pool
XX_DM_Pri_Scenario Atlanta XXAssembler LABOR US_MFG 30
XX_DM_Pri_Scenario Atlanta XXMachine MACHINE US_MFG 25
XX_DM_Pri_Scenario Atlanta XXTester LABOR US_MFG 30
XX_DM_Pri_Scenario Atlanta XXPacker LABOR US_MFG 25
XX_DM_Sec_Scenario Atlanta XXAssembler LABOR US_MFG 30
XX_DM_Sec_Scenario Atlanta XXMachine MACHINE US_MFG 25
XX_DM_Sec_Scenario Atlanta XXTester LABOR US_MFG 30
XX_DM_Sec_Scenario Atlanta XXPacker LABOR US_MFG 25
XX_DM_Rep_Scenario Atlanta XXAssembler LABOR US_MFG 30
XX_DM_Rep_Scenario Atlanta XXMachine MACHINE US_MFG 25
XX_DM_Rep_Scenario Atlanta XXTester LABOR US_MFG 30
XX_DM_Rep_Scenario Atlanta XXPacker LABOR US_MFG 25

• Generate roll up cost for the scenario “XX_DM_Sec_Scenario”

• Publish all the 3 scenarios

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 End-to-End Flow: Discrete Manufacturing to Costing (Replace XX with the student ID)
• Login as JENNA.SANCHEZ
• Create WO (Work Method = Discrete Manufacturing)
o XX_Product - Quantity = 10
o Release Work Order
• Review Dispatch List
o Execute each step of the Work Order
o Change the input quantity of material and resources for few of the inputs
o Scrap some of the quantities and complete the remaining quantity
• Close the Work Order

• Login as your student user

• Run the ESS Job “Transfer Transactions from Production to Costing” – Organization
= 002
• Run the ESS Job “Transfer Transactions from Inventory to Costing”
• Run the ESS Job “Create Cost Accounting Distributions” – Run Control: XX_Operations
• Run the ESS Job “Create Cost Accounting Distributions” again – Run Control:
XX_Operations
• Cost Accounting – Review Work Order Costs.
o Query the costs for the work order executed.
o Review the distribution generated for each of the cost books.
o For the material and resource issued, WIP valuation account will be debited
and Inventory account will be credited
o For the WIP Completion, Inventory account will be debited and WIP valuation
account will be credited
o In case of Secondary cost book, Usage and Efficiency variance will be
generated for the material and resource respectively issued different from the
work order

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5. Process Manufacturing Costing

Process Manufacturing Setups (Replace XX with the student ID)

• Login as your student user

• Product Information Management - Create the Items: XX_RAWSUGAR,
XX_RMSUGARCANE, XX_ RMLIMESTONE, XX_ RMSO2, XX_ BPTRASH, XX_ BPMUD,
XX_ BPMOLASSES and assign it to the inventory organization “002” – Atlanta

• Login as JENNA.SANCHEZ
• The Business Unit for the activity used will be US1 Business Unit and the inventory
organization will be 002 – Atlanta. Go to Supply Chain Execution > Work Definition
for the below configurations.
• Manage Work Areas – Create the work area “XXRaw Sugar Production”
• Manage Production Resources – Create the following resources:

Name Type Usage UOM Costing Enabled

XXCENTRIFUGAL Equipment Hr Yes
XXCF OPERATOR Labor Hr Yes
XXCRUSHER MILLS Equipment Hr Yes
XXCM OPERATOR Labor Hr Yes
XXROTARY FILTER Equipment Hr Yes
XXRF OPERATOR Labor Hr Yes
XXSUGAR DRIER Equipment Hr Yes
XXSD OPERATOR Labor Hr Yes
XXVACCUM PAN Equipment Hr Yes
XXVP OPERATOR Labor Hr Yes

• Manage Work Centers – Create the following Work Centers:

Name Work Area Resource

XXRaw Sugar Production XXCENTRIFUGAL,
XXCENTRIFUGALIZATION
XXCF OPERATOR
XXRaw Sugar Production XXCRUSHER MILLS,
XXEVAPORATION
XXCM OPERATOR
XXRaw Sugar Production XXROTARY FILTER,
XXFILTRATION
XXRF OPERATOR
XXRaw Sugar Production XXSUGAR DRIER,
XXFINISHING
XXSD OPERATOR
XXRaw Sugar Production XXVACCUM PAN,
XXMILL AREA
XXVP OPERATOR

• Manage Standard Operations – Create the following operations:

Operation Type Name Work Center Count Point

In-house XXCENTRIFUGALIZATION XXCENTRIFUGALIZATION Yes
In-house XXEVAPORATION XXEVAPORATION Yes

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 Operation Type Name Work Center Count Point
In-house XXFILTRATION XXFILTRATION Yes
In-house XXDRYING XXFINISHING Yes
In-house XXSHREDDING XXMILL AREA Yes

• Manage Work Definitions – Create a work definition for the item XX_RAWSUGAR
o Include the 5 standard operations created
o In the Standard Operations XXSHREDDING (Operation 10), include the input
item – XX_RMSUGARCANE; Basis = Variable, Quantity = 9,479; include the
output item - XX_ BPTRASH; Output Type = By-Product, Quantity = 47, Cost
Allocation = Fixed; and include the resources – XXCRUSHER MILLS (Basis =
Variable, Usage = 2) and XXCM OPERATOR (Basis = Variable, Usage = 1)
o In the Standard Operations XXFILTRATION (Operation 20), include the input
item – XX_ RMLIMESTONE (Basis = Variable, Quantity = 1,185) and XX_ RMSO2
(Basis = Fixed, Quantity = 5); include the output item - XX_ BPMUD; Output
Type = By-Product, Quantity = 47, Cost Allocation = 1%; and include the
resources – XXROTARY FILTER (Basis = Variable, Usage = 4) and XXRF
OPERATOR (Basis = Variable, Usage = 2)
o In the Standard Operations XXEVAPORATION (Operation 30), include the
output item - XX_ BPMOLASSES; Output Type = By-Product, Quantity = 427,
Cost Allocation = 1%; and include the resources – XXVACCUM PAN (Basis =
Variable, Usage = 1) and XXVP OPERATOR (Basis = Variable, Usage = 1)
o In the Standard Operations XXCENTRIFUGALIZATION (Operation 40), include
the resources – XXCENTRIFUGAL (Basis = Variable, Usage = 1) and XXCF
OPERATOR (Basis = Variable, Usage = 1)
o In the Standard Operations XXDRYING (Operation 50), include the output item
- XX_RAWSUGAR; Output Type = Product, Quantity = 1,000, Cost Allocation =
82%; and include the resources – XXSUGAR DRIER (Basis = Variable, Usage =
2) and XXSD OPERATOR (Basis = Variable, Usage = 1)

• Login as your student user

• Cost Accounting – Manage Cost Scenarios - Create the following cost scenarios:
o Scenario: XX_PM_Pri_Scenario; Cost Organization: US Operations; Cost
Book: Financial; Scenario Type: Regular Items; Rollup Scope: Selected Items
– XX_RAWSUGAR, XX_ BPMUD, XX_ BPMOLASSES
o Scenario: XX_PM_Sec_Scenario; Cost Organization: US Operations; Cost
Book: XX_Secondary; Scenario Type: Regular Items; Rollup Scope: Selected
Items – XX_RAWSUGAR, XX_ BPMUD, XX_ BPMOLASSES
o Scenario: XX_PM_Rep_Scenario; Cost Organization: US Operations; Cost
Book: XX_Reporting; Scenario Type: Regular Items; Rollup Scope: Selected
Items – XX_RAWSUGAR, XX_ BPMUD, XX_ BPMOLASSES
• Manage Standard Costs – Create standard cost for the items for the secondary cost
book:

Scenario Item Valuation Unit Cost Element Unit

Cost
XX_PM_Pri_Scenario XX_ BPTRASH US\-001-002 MATERIAL 10

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 Scenario Item Valuation Unit Cost Element Unit
Cost
XX_PM_Rep_Scenario XX_ BPTRASH US\-001-002 MATERIAL 10
XX_PM_Sec_Scenario XX_ BPTRASH US\-001-002 MATERIAL 10
XX_PM_Sec_Scenario XX_RMSUGARCANE US\-001-002 MATERIAL 120
XX_PM_Sec_Scenario XX_ RMLIMESTONE US\-001-002 MATERIAL 20
XX_PM_Sec_Scenario XX_ RMSO2 US\-001-002 MATERIAL 25

• Manage Resource Costs – Create resource rates for resources for all the 3 cost books:

Scenario Plant Resource Cost Expense Rate

Element Pool
Each Atlanta XXCENTRIFUGAL Equipment US_MFG 4
Each Atlanta XXCF OPERATOR Labor US_MFG 8
Each Atlanta XXCRUSHER MILLS Equipment US_MFG 4
Each Atlanta XXCM OPERATOR Labor US_MFG 8
Each Atlanta XXROTARY FILTER Equipment US_MFG 4
Each Atlanta XXRF OPERATOR Labor US_MFG 8
Each Atlanta XXSUGAR DRIER Equipment US_MFG 4
Each Atlanta XXSD OPERATOR Labor US_MFG 8
Each Atlanta XXVACCUM PAN Equipment US_MFG 4
Each Atlanta XXVP OPERATOR Labor US_MFG 8

• Generate roll up cost for the scenario “XX_DM_Sec_Scenario”

• Publish all the 3 scenarios

End-to-End Flow: Process Manufacturing to Costing (Replace XX with the student ID)
• Login as JENNA.SANCHEZ
• Create WO (Work Method = Process Manufacturing)
o XX_RAWSUGAR - Quantity = 1,000
o Release Work Order
• Review Dispatch List
o Execute each step of the Work Order
o Change the input quantity of material and resources for few of the inputs
o Scrap some of the quantities and complete the remaining quantity
• Close the Work Order

• Login as your student user

• Run the ESS Job “Transfer Transactions from Production to Costing” – Organization
= 002
• Run the ESS Job “Transfer Transactions from Inventory to Costing”
• Run the ESS Job “Create Cost Accounting Distributions” – Run Control: XX_Operations
• Run the ESS Job “Create Cost Accounting Distributions” again – Run Control:
XX_Operations
• Cost Accounting – Review Work Order Costs.

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 o Query the costs for the work order executed.
o Review the distribution generated for each of the cost books.
o For the material and resource issued, WIP valuation account will be debited
and Inventory account will be credited
o For the WIP Completion, Inventory account will be debited and WIP valuation
account will be credited
o In case of Secondary cost book, variances will be generated for the materials,
resources and outputs generated differently than the work order

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6. Costing of Fulfillment Flows

Back to Back Orders Setups (Replace XX with the student ID)

• Login as Calvin.Roth
• Create Purchase Agreement (Proc BU = US1 Business Unit, Req BU = US1 Business
Unit; Supplier = Advanced Corp; Site = AC US1)
o XX_B2B
▪ Price = 100 USD
▪ Agreement Amount = 100,000; Automatically generate orders = Yes;
Automatically submit for approval = Yes

• Login as your student user

• Product Information Management
o Create an Item: XX_B2B and assign it to the inventory organization “002” –
Atlanta
o Mark the item as Back to Back Enabled
o Set Make or Buy as Buy
• Manage Data Access for User – For the user “tonia.jones” and role “Pricing
Administrator”, assign the Business Unit access “US1 Business Unit”
• Cost Accounting – Manage Cost Scenarios
o Create a cost scenario – Scenario: XX_B2B_Sec_Scenario; Cost Organization:
US Operations; Cost Book: XX_Secondary; Scenario Type: Regular Items;
o Manage Standard Costs – Create a standard cost for the item
• Publish the standard cost scenario

• Login as JENNA.SANCHEZ
• Collect planning data – Supply Chain Planning > Plan Inputs
o Source System = OPS; Collection Type = Net Change
o Set Collection Filters – Organizations Filter for Items and Item Structures = 002
o Reference Data - Selected Entities = Item Costs, Items, Organizations
o Supply Planning Data - Selected Entities = Purchase Orders and Requisition
• Order Management > Global Order Promising – Create sourcing rule:
o Name = XX_Transfer; Organization Assignment Type = Global; Type =
Transfer From; Organization = 002; Allocation Percentage = 100
o Name = XX_B2B_Buy; Organization Assignment Type = Global; Type = Buy
From; Supplier = Advanced Corp; Site = AC US1; Allocation Percentage = 100
• Assign the sourcing rule
o Assignment Set = GlobalOrderPromising
o Assignment Level = Item; Item = XX_B2B; Sourcing Type = Sourcing rule; Rule
= XX_Transfer
o Assignment Level = Item and organization; Organization = 002; Item =
XX_B2B; Sourcing Type = Sourcing rule; Rule = XX_B2B_Buy
• Create ATP Rule
o Name = XX_ATP_Rule
o Rule Assignment: Assignment Basis = Item and organization; Organization =
002; Item = XX_B2B;

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 • Login as tonia.jones
• Create Price List – Order Management > Pricing Administration
o Type = Segment Price List; Business Unit = US1 Business Unit; Price Charge
Definition = Sale Price
o Create Charge – Item = XX_B2B
o Approve the price list
• Create pricing strategy and attach the above price list
• Run the ESS Job “Refresh and Start the Order Promising Server
o Purchase Order and Requisition= Yes; ATP Rules = Yes; Sourcing = Yes; Items
= Yes; Organizations = Yes;

End to End Process Flow: Back to Back Sales Order to Revenue

• Login as GWEN.MONTROSE
• Create a Sales Order (BU = US1 Business Unit; Customer = ABC Telecommunications)
o Item = XX_B2B; Quantity = 10
o Submit the Sales Order
• Go to the Fulfillment View. Distributed Order Orchestration number will be generated
• Go to the Supply Details tab; Supply Order number will be generated
• Go inside the Supply order. A purchase requisition will be generated and will be
converted into a purchase order

• Login as JENNA.SANCHEZ
• Receive PO
o Supply Chain Execution > Inventory > Receipts
o Query PO and Receive the line
• Deliver PO
o Supply Chain Execution > Inventory > Receipts
o Query PO and Deliver the line

• Login as your student user

• Run the ESS Job “Transfer Transactions from Receiving to Costing”
• Run the ESS Job “Create Receipt Accounting Distributions” – Bill to Business Unit: US1
Business Unit
• Receipt Accounting – Review Receipt Accounting Distribution.
o Query the distribution generated.
o Receiving Inspection account would be debited, and Accrual account will be
credited
• Run the ESS Job “Transfer Transactions from Inventory to Costing”
• Run the ESS Job “Create Cost Accounting Distributions” – Run Control: XX_Operations
• Cost Accounting – Review Cost Accounting Distribution.
o Query the distribution generated for each of the cost books.
o Inventory account would be debited, and Receiving Inspection account will be
credited.
o For the Financial and Reporting cost books, the amount will be the PO price
o For the Secondary cost book, the amount will be the standard rate set in the
cost scenario

Created by PTT, Oracle. 16

Version 2.0
 • Login as JENNA.SANCHEZ
• Ship the item
o Supply Chain Execution > Inventory > Shipments
o Query Sales Order and ship the line

• Login as your student user

• Run the ESS Job “Transfer Transactions from Inventory to Costing”
• Run the ESS Job “Create Cost Accounting Distributions” – Run Control: XX_Operations
• Cost Accounting – Review Cost Accounting Distribution
o Query the distribution generated for each of the cost books
o Deferred COGS account will be debited, and Inventory account will be credited

• Login as Casey.Brown
• Run the ESS Job “Import AutoInvoice”
o Business Unit = US1 Business unit; Source = Distributed Order Orchestration
o From/To Sales Order Number = Enter the SO number created above
• Receivables > Billing, query the invoice generated
o Receivable account will be debited, and revenue account will be credited
o Generate the accounting for the invoice
• Run the ESS Job “Import Revenue Lines”

• Login as your student user

• Run the ESS Job “Transfer Transactions from Inventory to Costing”
• Run the ESS Job “Create Cost Accounting Distributions” – Run Control: XX_Operations
• Cost Accounting – Review Cost Accounting Distribution.
o Query the distribution generated for each of the cost books.
o COGS account will be debited, and Deferred COGS account will be credited

Created by PTT, Oracle. 17

Version 2.0