Prior to starting the Inventory to Projects Flow without Manufacturing, some mandatory set ups needs to be done in Inventory Module in order to enable us to perform the above said Expenditure Flow.
Go to Inventory Vision Operations Responsibility
Prior to starting any transactions, the Organization needs to be changed to the appropriate Organization.
Nà Change Organization à Appropriate Organization
For Example we select H1
Nà Set Upà Transactions à Types
Go to the User Tab & Select Type name as Issue to Projects
Ensure that Project Checkbox is duly checked.
Now, Costing Method needs to be checked. The Costing Method should always be Average
Nà Set Upà Organizationsà Parameter
Now go to Costing Information Tab, Check for the Costing Method should be Average.
Also ensure that Project Cost Collect. Enabled checkbox is enabled.
Now, you are ready to enter a Miscellaneous Transactions
Nà Transactionsà Miscellaneous Transactions
Now, you might get an error “No Open Period found for the date entered”.
In the above case you will need to open the Inventory Accounting Periods
Nà Accounting Close Cycleà Inventory Accounting Periods
Change the Period Status from Future to open using the Change Status Tab.
Now, Go back to Enter a Miscellaneous Transactions
Nà Transactionsà Miscellaneous Transactions
Select the Type as Issue to Projects from the List of Values and click on Transaction Lines Tab.
You may sometimes not find the Available and On Hand Quantizes for an Item
In those cases you will need to add some quantities to a particular Item
Select the Type as Receipt Form from the List of Values and click on Transaction Lines Tab.
Now Select an Item from the List of Values.
For Example: CST0010 - Shelf.5.5".1".36".Gondola.DVD
Now, always check for the Available and On Hand Quantity Below. It will be 0
Now, select the location you wish to add these quantities into in the Inventory- MRO Stores
1. Add desired quantity you wish to add to the Item
2. Update the Account Information.
3. Update the Desired Source Project Details
4. Update the Source Task Details
5. Update the Expenditure Type
6. Update the Expenditure Organization.
SAVE YOUR WORK
Once saved, the same can be queried in the Issue to Projects Screen to ensure that the Quantities have been duly added.
It means that the Item has sufficient Quantities to be utilized as a basis for Miscellaneous Transaction Entry.
Steps for creating a Miscellaneous Transaction
- Select the Appropriate Item.
- Check for the available and On Hand Quantity.
- Now select the appropriate Sub Inventory. (It means the place where your item is being stored.)
- Enter the appropriate Quantity in the Quantity Field.
- Enter the Appropriate Account Details.
- Enter the Source Project Name in the Source Project Field.
- Enter the Source Task Number in the Source Task Field.
- Enter the appropriate Expenditure Type in the Expenditure Type Field.
- Enter the appropriate Expenditure Organization in the Expenditure Organization Field.
SAVE YOUR WORK
Now, run Material Cost Transaction Report which is also called Cost Manager Report.
Now, run Cost Collection Manager Report.
Nà Accounting Close Cycleà Project Cost Transfers
Select Number of Days to leave Costs Uncollected – 0
And submit the Report.
Once, the report is completed, Go to Material Transactions.
Nà Transactionsà Material Transactions
Query your Item and click on find
Now go to Reason, Reference Tab and check if Costed is YES and Transferred to Projects is YES.
Now, go to Projects, Vision Operations
Run the Report PRC: Transaction Import with Parameter as “Inventory Misc”.
You will need to select the Transaction Source where Exists Column has a star attached to it.
And submit the report.
Once, the transactions are imported, you can review the same in Expenditure Inquiry.
Important Points to be kept in mind while doing Inventory Based Transactions:
The Item attributes are very important and hence Item should be selected carefully prior to starting to book a miscellaneous transactions.
Item should not be tracked in Install Base
It means that the item should not be an Install Base Item and Track Install Base Checkbox should not be Checked.
Nà Itemsà Master Items
Select the Appropriate Organization like H1 Vision Stores
Query the Desired Item F11 & Control F11 and then go to the Service Tab and check for the check for the Track in Install Base Checkbox unchecked.
And also to know which all organizations where you can utilize the desired Item you can always check the same using the Left Hand Side 3rd Icon.
The above item can be utilized in all the organizations where Assigned Checkbox is checked.
The Item should not be Work in Process Item
Go to Work in Process Tab and check for the below.
It means that the Item should not be Build in WIP. The Build in WIP checkbox should be unchecked.
First and Foremost it should be an Inventory Item
Go to the Inventory Tab and check the following
Inventory Item Checkbox checked – Yes Meaning it is a Inventory Item
Stockable Checkbox Checked –Yes meaning the item can be stocked.
Transactable Checkbox checked – Yes meaning the item can sent and received into inventory
Reservable Checkbox Checked- Yes meaning the item can be reserved for future use.
Unit Price should Exist for the selected Item
Nà Costsà Item Costs
Query the desired Item and click on Find
Now, check for the Unit Cost Column that Unit Price is duly inserted.
You can assign the item under various expenditure Heads like Material, Material Overheads, Resource, Overhead and Outside Processing.
When you click on Open Tab. You can allocate a certain percentage of the Unit Costs under the above mentioned Expenditure Heads.
Note: The Total of the Percentage should not exceed 100% meaning it should not increase the Unit Price.
The total Unit Price is 1,253.25752.
The Total of Material 1,128.40000+ Material Overhead 113.93250 + Resource 8.90000 + Overheads 2.02502 is equal to 1,253.25752. = Unit Price.
Also you can track the available number of quantities under the selected item which can be used in a Miscellaneous Transaction. For Example -30.
Set Ups in Projects Module for Inventory Based Transactions.
Expenditure Type Set Up
An expenditure type is a classification of cost that you assign to each expenditure item you enter in Oracle Projects.
N èSetup è ExpendituresèExpenditure Types
Name: Enter a unique name for the expenditure type.
Expenditure Category and Revenue Category: Enter the expenditure category and revenue category you want to associate with this expenditure type.
Unit of Measure: Enter the unit of Measure you want Oracle Projects to use when calculating the cost for this expenditure type. You must enter Hours for labor expenditure types.
Tax Classification Code: This is a new feature in R12. You need to click Tax Classification Code and select the tax classification code for customer invoice lines for this expenditure type and operating unit. Oracle Projects uses this code as the default tax classification code based on the Application Tax Options hierarchy that you define in Oracle E-Business Tax for Oracle Projects and the specified operating unit.
Rate Required: If this expenditure type requires a cost rate, check the Rate required check box, then choose Cost Rate to navigate to the Expenditure Cost Rates window and enter a cost rate and its effective date(s).
Description and Dates: In the Description, Dates region, enter a description for the expenditure type. You can optionally enter effective dates for the expenditure type.
Expenditure Type Classes: In the Expenditure Type Classes region, enter the Expenditure Type Class or classes you want Oracle Projects to associate with This expenditure type, to determine how to process the expenditure item.
Rate Required: Define the desired rates for the expenditure type and save the record. This is useful for non labor resources transactions.
Now, define Expenditure Type Class
Meaning where all you want these expenditure Type to be used for transaction purposes.