S.

No CONTENTS
1 Overview of Average Costing
Average Costing - Illustration
2 Cost Elements Involved in Average Costing
Material & Material Overhead
Resource
Over-Heads
Outside-Point-Processing
3 This Level/Previous Level Elemental Costs
Cost elements Vs level applicable to them – Make Items
4 Important Accounts in Erp
Accounts which store the value of ‘Current Stock’
Accounts which are classified under ‘Expense Accounts’
5 Wip Accounting entries flow for Manufactured Items
Wip move transactions
Wip completion Transactions
Closing of Discrete Job
6 Source of Costing
For Po Items
How does non-cenvatible tax go into the product costing for Po Items
Illustration for NON CENVAT CALCULATION of Average Cost
For Mfg Items
Discrete job wip value summary
Cost Incurred accounting
Cost Releived accounting
Scrap Transactions
Input data for average costing of Mfg items
Detailed calculation thru a illustrtion
7 Average Cost Update
Options available for Average Cost Update
Merits and demerits of various options
8 Steps for opening stock upload in Erp for Mfg Item – Pre Go Live
Loading of Bill of Resources
Defining a USER DEFINED cost type for rollup and doing cost-roll-up
For roll-up what is the process
Pre-Requisites
Steps to be executed after Pre-Requisites are met
9 Cost Manager
Background
Conditions under which cost manager will not run

CROSS REFERENCES WITH OTHER DOCUMENTS

Costing flow diagram.xls ( Gives Graphical view of Costing Entries )
Document on resolution of cost manager not running for a Organization.word ( Trouble shooting manual
on Cost Manager )
detailed step by step procedure for doing cost rollup.word ( document on details of all the sql scripts
required for doing cost-rollup )

Overview of Average Costing

Under average cost system, the unit cost of an item is the average value of all receipts of that item to inventory, on a
per unit basis. Each receipt of material to inventory updates the unit cost of the item received. Issues from inventory
use the current average cost as the unit cost.
By using average costing method, you can perpetually value inventory at an average cost, weighted by quantity
(inventory cost = average unit cost * quantity).
For purchased items, this is a weighted average of the actual procurement cost of an item. For manufactured items,
this is a weighted average of the cost of all resources and materials consumed.

Average Costing - Illustration :

Every-time we do a transaction - average cost is recalculated at element level
New cost = (current rate*current stk)+(transaction rate *transaction qty)
-------------------------------------------------------------
( current stk + transaction qty )
New cost happens at element level.
This is called as Weighted average cost.
Example :
current stk = 10 nos New receipt = 1 no
current rate = 5 Rs New receipt rate = 10 Rs

New cost = ( 5 * 10 ) + ( 10 * 1 ) >> 60/11 >> 5.45 Rs

-----------------------
(10 + 1 )

Cost Elements involved in Average Costing :

Material :
As the name indicates this element stores the ‘material’ portion of cost. At ‘component level’, material cost will be
cost of raw material which goes into the mfg of the component.
At ‘sub-assembly level’, material cost will be sigma of cost of individual components which goes into the sub-
asembly.
For make items data on ‘material’ cost is taken from bill of material, for purchased items data on ‘material’ cost is
arrived from Po.
Material Overhead :
Overheads can be defined for material like for example one type of material overhead will be ‘cost of loading /
unloading’ the material in the organization can be defined and charged to the product. In TI we do not use this
element of Cost.
Resource :
This is sigma of cost of resources used, based on resources hours consumed for manufacturing the item. Resource
time is taken from routing and resource cost per hour is taken from rates under resource set-up.
Over-Heads :
This is sigma of cost of overheads used, based on resource hours consumed for manufacturing the item. Only
resources to which over-heads have been assigned will be taken for charging the over-heads. Resource time is taken
from routing and over-head cost per hour is taken from the department to which the resource has been assigned if
the overhead has to been assigned to the resource.
Outside Point Processing :
This will be service cost of using sub-contract resources for making the product. The cost of service is taken from
purchase order.

This Level/Previous Level Elemental Costs

Elemental costs for manufactured items are kept at two levels: this level and previous level.
This level costs are those costs incurred in producing the part at the current bill of material level.
Previous level costs are those incurred at lower levels.
This level costs might include labor and overhead supplied to bring an assembly to a certain state of completion.
Previous level costs might include material and labor, and outside processing costs incurred to bring an item to its
current state of completion. Totals costs for an item are calculated by summing the this level and previous level
costs as shown in the following table.
Cost in Rupees Material Resource Overhead Osp
Previous Level 100 25 27 5
This Level 0 2 1 3
Total Costs 100 27 28 8

Cost elements Vs level applicable to them – Make Items

Cost Element This Level Previous Level
Material Not Applicable Applicable
Resource Applicable Applicable
Overhead Applicable Applicable
Outside point processing Applicable Applicable
Note : Exceptions to ‘This Level’ material cost will be during erp go-live of an organization, when the stock
uploaded for make items will have the cost getting fully apportioned to only ‘This Level’ material cost for that item.
However when transactions are done for the item ‘this level’ material cost will move towards zero gradually and
‘previous material cost’ will increase gradually until break-even is attained.

Important Accounts in Erp

Accounts which store the value for ‘ Current Stock ‘
1. Organisation Receving Account (stock received but not transferred to stores - pre and post inspection)
2. Inventory Valuation Account ((organisation current stk of Rm + In process stk at inventorised points + Fg)
Elemental cost visibility is possible here. Accounts which come under this are
a. Inventory Material Valuation Account
b. Inventory resource valuation account
c. Inventory over-head valuation account
d. Inventory outside processing valuation account
3. Wip Valuation Account ( Organisations current stock lying inprocess at operations in discrete jobs )
Elemental cost visibility is possible here. Accounts which come under this are
a. Wip Material Valuation Account - When material is charged to a job this account is debited
b. Wip resource valuation account - When Resource is charged to a job this account is debited
c. Wip over-head valuation account - When overhead is charged to a job this account is debited
d. Wip outside processing valuation account - When Material is processed outside within a job then
this account is debited with the vendor’s fees as mentioned in the OSP Purchase order
Accounts which can be classified under ‘Expense’ header
4. Wip Variance Account ( expense / profit due to variance in consumption with reference to Bom / Routing
standards )
Elemental cost visibility is possible here. Accounts which come under this are
a. Wip Material Variance Account - when consumption is different from the standard defined in
BOM this account is hit
b. Wip Resource Variance Account - when consumption is different from the standard defined in
Routing this account is hit
c. Wip Over-head Variance Account - Same as other variance account
d. Wip Outside Processing Variance account - Variance in OSP value gets posted here
5. Wip scrap Account (expense account holding scrap booked in wip)
6. Cogs Account ( expense account holding cost of goods sold at ship confirm )
Other Expense Accounts
7. Resource Absorption Accounts- With every resource we attach an absorption account, which is credited
when resource transaction takes place in manufacturing a job.
8. Overhead absorption accounts- with every overhead we attach an absorption account, which is credited
when overhead transaction takes place in manufacturing a job

Accounting Entries
Activity
1. Wip Move Transaction
Debit WIP Resource Valuation A/c
Credit Resource Absorption account
(For every operation if there is resource requirement this entry will take place. In case of manual
entry, this can be done at the time of move operation itself or separately as pending resource
transaction)

Debit WIP Overhead Valuation A/c

Credit Overhead Absorption account
(With the resources, overhead also gets consumed as we move the job through
different operations. The rate and absorption account depends on what is attached with the
overhead and what rate is attached for the overhead in the respective department where
the Move transaction is taking place.)

Debit WIP Material Valuation A/c

Credit Inventory Material A/c
(There is only one Inventory material account for the whole inventory organization, if we are
following average costing. The material cost is the average cost taken at the time of transaction.
This entry only takes place if operation pull is used. In case assembly pull is used this entry will
take place when WIP completion transaction is performed. In case of Push option this entry will
take place at the time of WIP material transaction.)

For Osp
On Receiving
Debit Organization Receiving A/c
Credit Ap Accroval A/c
On Delivery
Debit Wip Osp Valuation A/c
Credit Organization Receiving A/c
In case of Osp Resource absorption a/c of Osp resource will be equal to ‘Organisation receiving
a/c’.

All the WIP accounts will be selected from the wip accounting class attached with the job.

2. WIP completion Transaction

Debit Inventory Resource Valuation A/c
Credit WIP Resource Valuation A/c
(This transaction is costed transaction and takes place at the standard rate, which is defined at the
routing. That is the resource usage rate will be as per the routing and the rate will be as per the
resource rate defined in BOM module.)

Debit Inventory Overhead Valuation A/c

Credit WIP Overhead Valuation A/c
(This will be as per the standard defined in the routing and the rate will be as per the overhead
rate defined in the deptt.)

Debit Inventory Material Valuation A/c

Credit WIP Material Valuation A/c
(This is again as per the standard usage quantity and the average rate for the material. In case
there is any under consumption it posts a variance))

Debit Inventory Osp Valuation A/c

Credit WIP Osp Valuation A/c

All the WIP accounts will be selected from the wip accounting class attached with the job and the
org accounts are nothing but the accounts associated with the inventory org under organization
parameters.

3. WIP Job closing

Job closing only involves variance account posting. As long as job is not closed all the wip
accounts will show Dr or Cr balance in case there is any variance. Jobs are to be closed before
closing period. Accounting entries are –

Dr./Cr. WIP Material Variance account

Cr./Dr WIP Material valuation account
Dr./Cr. WIP Overhead Variance account
Cr./Dr WIP Overhead valuation account
 Dr./Cr. WIP Resource Variance account
Cr./Dr WIP Resource valuation account
Dr./Cr. WIP OSP Variance account
Cr./Dr WIP OSP valuation account

WIP material variance account is populated in the following cases-

A. Material issued to the job is less than the standard quantity specified in the Bill of Material.
B. Average cost of the material has changed during the time interval between cost of material
incurred (Dr. WIP Material Valuation A/c) and cost relieved (Cr. WIP Material Valuation
A/c ) then this will result in a variance.
C. If substitute items are issued instead of the item specified in the Bill of material, then due to a
different average cost of the substitute material (from that in BOM) there will be variance in
WIP material account.

Resource and overhead variances are generated when resource is manually charged DUE to re-work
operation which is not considered in the Routing.

Sourse of Costing :
For Po Items : The data required for average costing for purchased items will be Purchase Order.
How does Non cenvatible tax go into the product costing for Purchased Items
There are 2 portions of cost for purchased items which are excisable
a. Basic Price
b. Tax Portion
When delivered to inventory new average cost gets calculated based on ‘basic price’, the ‘tax
portion’ is then passed by localization which gets added to the prevailing inventory value at that
point of time. This is illustrated by an example below
Stock of raw material 'A' 100
Current average cost of rm 2 Rs
New receipt qty 50
recept rate 4 Rs
Tax rate for 1 no 1 Rs
Tax value for the receipt => 50*1 => 50 Rs
When a receipt is made only the average cost gets recalculated taking into account the po price only
New average cost => ((100*2)+(50*4)) / (100+50) => 2.666667
Current stock 150
Current Average cost 2.666667
Current Value => 150 X 2.666667 => 400
Now the localization passes Rs 50 which is the tax portion of the receipt for calculating the average cost
Now the total inventory value has to increase from 400 to 450 ( 400+50 )
New average cost after incorporating the tax portion for => (400+50)/150 => 3 Rs
existing stock of 150
Note : Many instances have been reported in the past of some purchased items which are excisable
having very high current average cost. In majority of cases this was attributed to bulk of the material
getting issued to line immediately on delivery before the localization could pass the ‘tax portion’ of the
po, and by the time when the ‘tax portion’ of po was passed this tax value had to be apportioned to the
remaining small portion of the overall qty that was received and hence the new average cost of the item
looks very much inflated. This is considered to be a normal situation, as the cost will get corrected by
subsequent receipts.

For Mfg Items : The data required for average costing for make items will be ‘discrete job wip value summary’.
The accounting flow detailed above takes place when-ever discrete jobs are transacted by way of move txns, scrap
txns and completion transactions.
 Discrete Job Wip Value Summary :
This has two portions
Cost Incurred : When-ever move transactions are done cost of material, resource, osp & overhead get charged to
the discrete job wip value as per bom & routing of discrete job at the prevailing Average / Avg rates at the time of
transaction. Also when manual charging is done to the discrete job as in the case of re-work when extra resources
are required for rework, cost of using these resources will also get charged to the discrete job.
Cost Releived : When-ever completion transactions are done cost of material, resource, overhead & osp in line
with the quantity completed get relieved from the discrete job wip value as per bom & routing of discrete job at the
prevailing Average / Avg rates at the time of completion transaction. The cost incurred on account of manual
charging of resources on account of rework will not get relieved from the wip value on completion as rework is not
part of standard routing. However this will get relieved from cost incurred and will be debited to ‘wip resource
variance account’ only when the job is closed.
Scrap Transactions : When-ever scrap transactions are done, value of material, resource, overhead & osp
incurred upto the scrap operation get relieved from the discrete job and gets charged off to the scrap account entered
at the time of scrap transactions.
Input Data for costing of Mfg Items :
As ‘cost relieved’ accounting entries credit wip valuation and debit inventory valuation, data for average costing at
elemental level is taken from inventory valuation entries which get generated during completion transactions.

The above accounting entries have been detailed by an Example

Illustration :
The about accounting flow is illustrated by an example
Finished Goods : FG ( Uom : Each )
This uses raw material : RM ( Uom : Kg )
Material cosumption : 1 Kg / Each
Resource cost of Blanking Press : 100 / Hr
Over-head cost of Blanking Press : 150 / Hr
Production rate of Blanking Press : 100 Each / Hr
Current raw material OHQ : 100 ( Cost 1 Rs / Kg )
Current OHQ of FG :0
Completion Transaction done for 10 Nos of Fg thru an existing job order
Primary TXN
Txn Account Description A/c Type UOM Quantity Rate in Rupees Val Txn Type
Credit Resource Abs A/c Resource abso Hr -0.1 100 -10 Resource txn
Credit Over-Head Abs A/c Overhead abso Hr -0.1 150 -15 Resource txn
Credit Inv Material Val A/c Inv valuation Kg -10 1 -10 WIP compt issue

Debit Wip Resource Val A/c WIP valuation Hr 0.1 100 10 Resource txn
Debit Wip Over-Head Val A/c WIP valuation Hr 0.1 150 15 Resource txn
Debit Wip Material Val A/c WIP valuation Kg 10 1 10 WIP compt issue

Credit Wip Resource Val A/c WIP valuation Ea -10 -10 WIP Assy Compl
Credit Wip Over-Head Val A/c WIP valuation Ea -10 -15 WIP Assy Compl
Credit Wip Material Val A/c WIP valuation Ea -10 -10 WIP Assy Compl

Debit Inv Resource Val A/c Inv valuation Ea 10 10 WIP Assy Compl B
Debit Inv Over-Head Val A/c Inv valuation Ea 10 15 WIP Assy Compl C
Debit Inv Material Val A/c Inv valuation Ea 10 10 WIP Assy Compl A
TXN QUANTITY : 10 NOS Txn Value 35
Item Cost Ttl Cst This Lvl Prev Lvl
Material Cost <=> A / 10 1 0 1
Resource Cost <=> B / 10 1 1 0
Overhead Cost <=> C / 10 1.5 1.5 0
3.5 2.5 1
Note :
1. Cost Accounting Entries marked in ‘Pink’ colour are responsible for populating the cost ‘incurred’ portion
of wip value summary.
2. Cost Accounting Entries marked in ‘Blue’ colour are responsible for populating the cost ‘releived’ portion
of wip value summary

Status of entries when the above txn is completed

Current Fg OHQ : 10 Each
Current RM OHQ : 90 Kg
Current Average Cost Fg : Rs 3.5
Current Average RM cost : Rs 1

Details of Average Cost of Fg at the end of this transaction

NEW AVERAGE COST
Item Cost Total Cst This Lvl Prev Lvl
Material Cost 1 0 1
Resource Cost 1 1 0
Overhead Cost 1.5 1.5 0
3.5 2.5 1

Fresh receipt of RM
Now a new lot of raw material for 100 Kg is received at the rate of 2 / Kg.
Current Avg RM Cost : (( 90 x 1 ) + ( 100 x 2 )) / ( 90 + 100 )=>1.5263 Rs

Fresh completion txn for FG is done for 15 Nos, details of cost entries for which are detailed
below
Primary Rate in TXN
Txn Account Description A/c Type UOM Quantity Rupees Val Txn Type
Credit Resource Abs A/c Resource abso Hr -0.15 100 -15 Resource txn
Credit Over-Head Abs A/c Overhead abso Hr -0.15 150 -22.5 Resource txn
Credit Inv Material Val A/c Inv valuation Kg -15 1.52632 -22.89 WIP compt issue

Debit Wip Resource Val A/c WIP valuation Hr 0.15 100 15 Resource txn
Debit Wip Over-Head Val A/c WIP valuation Hr 0.15 150 22.5 Resource txn
Debit Wip Material Val A/c WIP valuation Kg 15 1.52632 22.89 WIP compt issue

Credit Wip Resource Val A/c WIP valuation Ea -15 -15 WIP Assy Compl
Credit Wip Over-Head Val A/c WIP valuation Ea -15 -22.5 WIP Assy Compl
Credit Wip Material Val A/c WIP valuation Ea -15 -22.89 WIP Assy Compl

Debit Inv Resource Val A/c Inv valuation Ea 15 15 WIP Assy Compl B
Debit Inv Over-Head Val A/c Inv valuation Ea 15 22.5 WIP Assy Compl C
Debit Inv Material Val A/c Inv valuation Ea 15 22.89 WIP Assy Compl A
TXN QUANTITY : 15 NOS TXN Value 60.39
Item Cost Total Cst This Lvl Prev Lvl
Material Cost <=> A / 10 1.526 0 1.526
Resource Cost <=> B / 10 1 1 0
Overhead Cost <=> C / 10 1.5 1.5 0
4.026 2.5 1.526
Note :
1. Cost Accounting Entries marked in ‘Pink’ colour are responsible for populating the cost ‘incurred’ portion of
wip value summary.
2. Cost Accounting Entries marked in ‘Blue’ colour are responsible for populating the cost ‘releived’ portion of
wip value summary
New Average Cost of Fg
NEW AVERAGE COST
Item Cost Total Cst This Lvl Prev Lvl
Material Cost 1.3156 0 1.3156
Resource Cost 1 1 0
Overhead Cost 1.5 1.5 0
3.8156 2.5 1.3156

Details of Calculation for Fg :

Formula
((current elemental value x current stock)+(trx elemental value x txn qty))
( current stock + txn quantity )
Using this formula Elemental Cost will be
Material Cost => ((1 x 10) + (1.526 x 15)) / (10 + 15) => 1.3156
Resource Cost => ((1 x 10) + (1 x 15)) / (10 + 15) => 1
Overhead Cost => ((1.5 x 10) + (1.5 x 15 ) / (10 + 15) => 1.5

Average Cost Updates

When you update average costs, items in all asset subinventories in
your organization and inventory in intransit that is owned by your
organization are updated (revalued) by changing the unit cost to the
new specified cost.
You can update cost by one of the following methods
a.Change costs by cost element and can choose one, several, or all cost elements at the same time.
b.Enter the new average cost at item level, system will apportion the new cost element-wise in the proportion of
existing break-up of average cost element-wise.
The offset to the change in inventory value resulting from a cost update is posted to the average cost adjustment
account that you specify. Items in work in process are not revalued by an average cost update, nor are expense items
or any item in an expense subinventory.
Elemental details of two options for correcting the average cost thru ‘Average cost Update’ is
detailed below with the implications involved in both
Alternative Option 1 Option2
Objective Correct Item Cost at Elemental Level Correct Item Cost at Item Level and let elemental
correction occur over a period of time.
Steps to be 1. Issue all the stock from respective sub- 1. Issue all the stock from respective sub-
followed. inventories through misc issue. inventories through misc issue.
2. Perform Average Cost Update for all items 2. Receive the Physical Inventory Data into
to correct cost at elemental level by referring to corresponding sub-inventories through misc
the certified rolled up cost. rcpt at the rolled up item cost. This will
3. Receive the Physical Inventory Data into correct the overall item cost of all the items,
corresponding sub-inventories through misc which have physical stock. For other items
rcpt. which do not have stock, the rate will get
corrected with the first transaction which
brings this stock into inventory as all the
BOM and routing are corrected.
3. The elemental details of the item cost
loaded as per this method would be in the
same proportion as it was before the stock
correction. This proportion would get
corrected over period with transactions
automatically.
4. To further reduce the elemental
proportion error an exception report can be
taken for those items where the proportional
is grossly different (say > 20%) from the

Implication 1. This is a perfectionist approach under which all
s the item costs will get corrected to the finer
elemental details.
2. Average cost update process is a front end
process which would require high effort due to
number of items and is also prone to errors.
same in rolled-up cost and elemental average
cost update can be performed for these items.
1. This approach is more practical under
which the costs are first corrected at the item
level and then are slowly corrected to the
elemental level through transactions.
2. As our overhead calculations as well as
routing timings are anyway having some
level of approximation, this approach is more
justified from the point of view of effort
required.

STEPS FOR OPENING STOCK ITEM RATE CALCULATION

Step A - Loading Bill of Resource
1. When a reasonable level of validation has been completed on engg data (bom & routing), the program
BOR should be launched in ‘capacity planner’ responsibility after defining a ‘BOR’ name. BOR stores the
indented routing information for an Fg.
2. Budget data for the financial year to be entered in custom for ‘TI Budget Volume’,
3. Run the report ‘TI Budgeted Volume Resource Hours Report’. This will give department-wise / resource-
wise ‘Hours’ requirement for meeting the budget.
4. For the allocation of funds for that cost-centre and using the resource hours information for the budget
arrive at resource and overhead rates and update the same under cost type ‘Avg’

Step B - Defining a USER DEFINED cost type for cost rollup and doing cost-roll-up
1.Define a cost type for this purpose like 'TIDCROLLUP'.
No item costs should exist under this cost type
No resource cost exists under this cost type
No overhead cost exists under this cost type
2.Resource and Overheads Setup
Defined under cost type 'Avg'
Contains resource cost per hour for all resources
Contains overhead rates for all departments
Also contains overheads and resources associated for overheads
For rollup what is the process
Assembly cost-rollup is basically a process of calculating std cost for all make items as per Bom and Routing. It is
done under a user defined cost type 'X'.
Pre-requisites :
1. All leaf level (buy) bom items should have a cost under this cost type 'X'
2. All resources should have rates defined under this cost type 'X'
3. All departments should have over-head rates defined under this cost type 'X'
4. All overhead / resources association must exist under this cost type 'X'
5. Assign all make and buy items which are part of bom with this cost type ‘X’
6. For buy items update the WAR COST as per stores ledger against this cost type ‘X’.
7. No make items must have a cost under this cost type 'X'.
Steps to be followed for cost-rollup after pre-requisites have been met.
1. Copy resource cost from 'Avg' to 'cost type X' for all resources
Concurent request under menu ' Cost Mass Edits ' - copy resource information
2. Copy overhead rates from 'Avg' to 'cost type X' for all departments
Concurent request under menu ' Cost Mass Edits ' - copy overhead information
3. Copy overhead / resource association from 'Avg' to 'cost type X'
Concurent request under menu ' Cost Mass Edits ' - copy resource-overhead association
4. Perform the process of Assembly Cost Rollup for all make items under cost type 'X'
5. Verify if the rolled-up cost of make items matches with reference standards ( could be your legacy cost ).
If rolled-up cost does not match with reference standards corrections have to be made in bom & routing in
line with the abnormalities indicated by rolled up cost details, after which ‘STEP A’ & ‘STEP B’ detailed
above needs to be repeated till rolled-up cost match with some reference standards.
 The finalized cost arrived thru cost roll-up for make items (cost arrived thru a iterative process of STEP A & STEP
B matching with reference standards of legacy) will be used for uploading the physical inventory of ‘make’ item
during pre-go live. This uploaded cost will iniatially get totally apportioned to cost element - Material only under
‘this level material cost’. However as transactions are done the average cost of ‘this level material’ goes down and
‘resource / overhead / osp / material’ elements of ‘previous level’ and ‘resource / overhead / osp ’ elements of ‘this
level’ increases till a breakeven is achieved.

Cost Manager :
Background :
Cost Manager is one of the interface managers which is scheduled to run once in 20 minutes. When cost manager
runs it calls for ‘Actual Cost Worker’ which in turn will process the following :
a. Un-costed records in mtl_material_transactions table. The costing status of records can be checked under
the parameters costed = Yes, No or Error in ‘Material Transactions’ menu under cost mgmt responsibility
b. Uncosted resource transactions in interface wip_cost_txn_interface

The cost manager will not run if any one of the following conditions exist
a. Check-up with the dba person if cost-manager is active. If in-active ask dba’s to launch the cost manager.
Uncosted records should get costed during the next run of cost manager
b. There are records in wip_cost_txn_interface ( pending resource transactions ) with process status =
‘Error’. The user has to take disposition for the error message indicated against each of the errored records
after which he should re-submit these records. If correct disposition is taken, then the records should get
cleared during the next run of the cost manager
c. Check-up for any discrete jobs having status as ‘Failed Close’. In case there are jobs with such status,
disposition should be taken on going thru the transaction summary of the failed close job. Try closing these
jobs now, if proper dispositions are taken then the status will change to ‘Closed’. Confirm that there are no
jobs with status ‘failed close’. During the next run of the cost manager the uncosted records should get
costed.
d. Query for records in ‘material transactions’ under cost management after clearing the start and end dates
and selecting the status as ‘Error’ under costed. In case there are records with costed_flag = ‘Error’ then
these will be displayed. Disposition has to be taken based on error message detailed by the transaction. As
disposition is very subjective guidance should be taken from metalink. After disposition is taken re-submit
the errored records either from front-end or back-end. This should clear the un-costed records during the
next run of cost manager.
e. Sometimes even after executing steps a,b,c & d you still find that the cost manager is still not processing
records for that organization, then there could be a dependency requirement not getting met like for eg
1. Suppose there is an inter-org transfer between 2 mfg locations, if cost mgr fails to run in
dispatching org on account of some reason, then it will not run in receiving org also, even if
points a,b,c & d are met by the receiving org
2. Now a dispatch is made from the receiving org to a warehouse, then the warehouse costing will
also stop, even if points under a,b,c & d are met by the warehouse
3. Hence disposition needs to be taken at source of the problem in view of cyclic nature of the
problem, in this case dispatching org of point 1, if cost manager runs here then automatically the
uncosted records of receiving org and warehouse also will get costed.