Cost Accounting
Functional Comparison - SCM Cloud Cost Accounting vs Oracle EBS Costing
| EBS Description | Translates to Cost Management Cloud |
|---|---|
| Oracle Costing | Oracle Cost Accounting |
| Cost Type | Cost Scenario (approximately) |
| Cost Elements | Cost Element Types |
| Sub-Elements | Cost Elements (approximately) |
(Only the functionalities that are substantially different/ enhanced have been mentioned)
| Criterion | Cloud Improvement Score | Cloud Applications (Release 13 - 21A) | EBS Applications (Release 12.1.x & above) | Cloud Improvement Metrics | Rationale for score |
|---|---|---|---|---|---|
| Functionalities : Gaining efficiencies by having efficient business processes supported by Cloud | |||||
| Cost Organization |  |
A single or group of inventory organizations within same profit center business unit | Always represents a single inventory organization by itself |
Improves Efficiency Process Improvement Improves Data Integrity Eliminates Extension/ Workarounds Improves Compliance |
Costs can be shared between multiple inventory organizations within the cost organization resulting in easy maintenance and access |
| Supported Costing Methods |  |
|
|
Improves Efficiency Process Improvement Improves Data Integrity Eliminate Extension/ Workarounds Improves Compliance |
Not suitable for organizations which are mandated to follow LIFO or Periodic cost methods |
| Costing by Cost Book | |
Multiple cost representations of same transaction is available using cost books | Transaction can be costed using only one costing method configured at Inventory Organization level |
Improves Efficiency Process Improvement Improves Data Integrity Eliminates Extension/ Workarounds Improves Compliance |
Powerful cost analysis and reporting with representations of same transaction without creating multiple inventory organizations |
| Valuation Structure | |
Option to enable costing at granular levels e.g. Cost Org, Inventory Org, Subinventory, Locator, Lot, Serial, Grade or Item | Only option is to enable costing at Inventory Organization level |
Improves Efficiency Process Improvement Improves Data Integrity Eliminates Extension/ Workarounds Improves Compliance |
Enables flexibility to support optimal granularity for cost definition |
| Cost Elements | |
Unlimited cost elements can be configured and grouped under Material, Overhead, Resource, Adjustment, Profit in Inventory cost element types | Only Material, Material Overhead, Resource, Outside Processing, Overhead cost elements can be configured |
Improves Efficiency Process Improvement Improves Data Integrity Eliminates Extension/ Workarounds Improves Compliance |
Provides detailed recording along with audot trail |
| Cost Profile | |
Combination of valuation structure, cost elements and costing method that can be assigned to each item | Not applicable for discrete manufacturing; similar to fiscal policy for process manufacturing |
Improves Efficiency Process Improvement Improves Data Integrity Eliminates Extension/ Workarounds Improves Compliance |
Flexible accounting of each cost transaction based on cost profile reducing adjustments |
| Cost Analysis | |
Better cost comparison between one or more cost scenarios | Cost type comparison report is not as effective |
Improves Efficiency Process Improvement Improves Data Integrity Eliminates Extension/ Workarounds Improves Compliance |
Graphical Hierarchical view with details of rolled up costs providing better visibility into current and future costs |
| Expense Pools |  |
Expense accounts that can be absorbed as overhead costs. Provides simple allocation rules | Resources and overheads had a single absorption account and no allocations |
Improves Efficiency Process Improvement Improves Data Integrity Eliminates Extension/ Workarounds Improves Compliance |
Multiple absorption accounts and simple allocation rules may eliminate the need to do allocations in GL or EPM |
| Cost Scenario | |
Provides one time use of scenario to update item costs, resources and overhead rates. Becomes non updatable once costs are published | Same Cost Type can be reused multiple times for cost roll up and cost update |
Improves Efficiency Process Improvement Improves Data Integrity Eliminate Extension/ Workarounds Improves Compliance |
Triniti's costing solution can handle complex cost structures across multiple organizations and factor yield based costing |
| Cost Rollup |  |
Costs have to be rolled up separately in each organization | Supply chain cost rollup spans across multiple organizations |
Improves Efficiency Process Improvement Improves Data Integrity Eliminate Extension/ Workarounds Improves Compliance |
|
| Yield/Shrinkage Costing |  |
This feature is not available in fusion application | Operation yields are considered during item cost rollup and are costed accordingly |
Improves Efficiency Process Improvement Improves Data Integrity Eliminate Extension/ Workarounds Improves Compliance |
|
| WIP Accounting Class | |
This feature has been replaced with transaction based account mapping | WIP transactions are costed using the accounts defined under WIP accounting class |
Improves Efficiency Process Improvement Improves Data Integrity Eliminates Extension/ Workarounds Improves Compliance |
Enhanced accounting. Cost Accounting decoupled from physical transactions |
| Inventory Accounting/ Cost Groups |  |
This feature has been replaced with transaction based account mapping | Inventory transactions are costed using the accounts defined at inventory organization, subinventory and cost groups (Oracle WMS only) |
Improves Efficiency Process Improvement Improves Data Integrity Eliminate Extension/ Workarounds Improves Compliance |
Setting up WMS is not required |
| Controlling Overhead Absorption | |
Control absorption overhead absorption for specific transactions, e.g. purchase order receipt, while not absorbing overheads for other transactions, such as miscellaneous receipts or subinventory transfers | This functionality is not available |
Improves Efficiency Process Improvement Improves Data Integrity Eliminates Extension/ Workarounds Improves Compliance |
Minimize manual adjustments |
| Ability to Change Accounting | |
Account mapping can be changed at any point of time | Most of the accounts are frozen once transactions are recorded |
Improves Efficiency Process Improvement Improves Data Integrity Eliminates Extension/ Workarounds Improves Compliance |
Eliminates the need to create new organizations and subinventories if accounts need to be changed |
| Period Close Dependency | |
Option to enforce closing of Subledger period before closing GL period | No such dependency can be configured |
Improves Efficiency Process Improvement Improves Data Integrity Eliminates Extension/ Workarounds Improves Compliance |
Enforces discipline and prevents mis-steps |
| Migration/ Conversion : Quick and reliable path to cloud | |||||
| Cost Import | |
MS Excel based templates have been provided | Standard templates are not available in EBS |
Improves Efficiency Process Improvement Improves Data Integrity Eliminate Extension/ Workarounds Improves Compliance |
Faster migration to cloud with simplified cost import process |
| Reporting and Analytics : Easy, advanced visualizations | |||||
| Reports | |
Highly flexible reporting providing excellent data visualization are available using Oracle Transactional Business Intelligence (OTBI) | Limited standard reports availability and requires development of custom reports |
Improves Efficiency Process Improvement Improves Data Integrity Eliminate Extension/ Workarounds Improves Compliance |
Fusion applications provide high level of flexibility to maximize the use of data using actionable graphs, machine learning and artificial intelligence |
| Costing Dashboard | |
User interactive and actionable dashboards are easily configurable | No standard dashboard available in application |
Improves Efficiency Process Improvement Improves Data Integrity Eliminate Extension/ Workarounds Improves Compliance |
|
| Cost Analysis Groups | |
Used for reporting purposes | Not applicable for discrete manufacturing; similar concept for process manufacturing |
Improves Efficiency Process Improvement Improves Data Integrity Eliminate Extension/ Workarounds Improves Compliance |
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