opm sla n mac
TRANSCRIPT
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ABeam Consulting USA
OPM Production vs. Accounting TheMonth End Battle Continues
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Learning Objectives
Understand how every employee acts as a
cost accountant
Understand the production floor and
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concerns
Understand how to be proactive during the
month to make an easier closing Develop a month end checklist for your
company
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Speakers Qualifications
Robert Smith is a CPA who is currently a
Senior Manager with ABeam Consulting,USA
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manufacturing industry as a user andconsultant.
Speaks frequently on the capabilities ofOPM and its integration with OracleApplications
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Presentation Agenda
Rules of the Game
Manufacturing vs. AccountingObjectives
OPMs Transaction Based System
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s mo u e erarc y Month End Checklist
Proactive review of transactions
Q & A
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Rules of the Game
There is no such thing as a dumb question
Ask questions when you think of them, butthey may not be answered until the end
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e respec u Have fun!
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Objectives
Manufacturing
Zero stock outs
Production output goals
Accurate inventory levels
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Sales goals On-time shipment percentages
Accounting
Accurate reflection of companys business
Timely reporting
Inventory level goals
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Transaction Based System
In the past we may recall the monthly
lockdown
Non-integrated Lack of reporting
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financial system oo s
System constraints
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Transaction Based System
OPM allows users to get rid of lockdown
periodIntegrated financials stem
Numerous reportingtools
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Freezing inventory
capability
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Transaction Based System
OPM Transactions
ReceiptsReturn to Vendor
Shipments
Customer Returns
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Inventory Transfer
Batch inputs
Batch outputs
Inventory Adjustment
Inventory Create
Inventory Move
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Transaction Based System
When making these transactions while
using the MAC or SLA
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Everyone with ability to make thesetransactions is now a cost
accountant
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MAC Module/Subledger Accounting (SLA)
MAC (11i) and SLA (R12) module is
where you define the elements neededto derive financial implications of severalOPM modules
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Purchasing
Order Processing
Production Management
Inventory Management
Cost Management
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Hierarchy
MAC
Events
SLA
Event Classes
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u - ven s
Account Titles
Priorities and
Mappings
ven ypes
Journal Lines andTypes
Account DerivationRules
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MAC Module
MAC Hierarchy
Events Events are logical groupings ofsub-events
PORC = PO Recei t
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BTCH = Batch Processing
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MAC Module
MAC Hierarchy
Sub-events are detailed ledgertransactions that affect the generalledger
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Sub-Events RELE = Batch Release
CERT = Batch Certification
CLOS = Batch CloseAll are in the event BTCH
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MAC Module
MAC Hierarchy
Account titles are used to identifythe types of accounts that willgenerated for a journal entry
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Account Titles
INV = Inventory
WIP= Work in Process
These titles would be used with theRELE and CERT sub-eventscontinuing our example
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MAC Module
MAC Setup
-Account Selection Priorities andAccount Mappings brings us back tosetup steps
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Priorities andMappings
-There are many setup steps butthese two affect the relationshipbetween manufacturing and
accounting at month end
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MAC Module
EstablishSelection Priority
Important
Setup Steps
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EstablishAccount Mapping
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MAC Module
Establish
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SLA Module
SLA Hierarchy
Events are logical groupings ofevent types
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Event Classes
Event Types
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SLA Module
SLA Hierarchy
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Journal Lines
and Types
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SLA Module
SLA Hierarchy
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AccountDerivation
Rules
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MAC Module
Example:
Company A wants all inventoryadjustments using the reason code ofInventory Find for items with a GL Class ofRAW to go to be charged to account
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300.3100.0000.000 and all other reasoncodes and GL classes to be charged toaccount 300.3200.0000.000. This is atypical request if it is necessary to track
charges for a specific reason. This willmake it very visible on the ledger thatsomething out of the ordinary hasoccurred.
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MAC Module
Following are the steps to be taken to
accurately map the requirement Determine which account title needs to be
mapped
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Ensure the selection priorities for thataccount title include the criteria requested
Create a default mapping for the account
title Create the specific mapping to handle the
exception
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MAC Module
Account Selection Priorities
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MAC Module
Create Default Mapping
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MAC Module
Create Specific Mapping
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MAC/SLA Module
The next time that reason codeis used in an adjustment thecreator just became a cost
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accoun an But there is control as to which
account it goes to
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SLA Month End Checklist
CompleteCompleteInventoryInventory
transactionstransactions PerformPerformCostingCosting
FunctionsFunctions
FinalFinalCreate AccountingCreate Accounting
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GeneralGeneralLedgerLedger
PrelimPrelimCostCost
UpdateUpdate
DraftDraftCreateCreate
AccountingAccountingFinalFinalInventoryInventory
CloseClose
Final CostFinal CostUpdateUpdate
OPM AccountingOPM Accounting
ProcessorProcessor
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Month End Checklist
These tasks have the most impact
CompleteCompleteInventoryInventory
transactionstransactions
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and should be reviewedproactively throughout month
DraftDraftCreateCreate
AccountingAccounting
TestTestSubledgerSubledger
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Proactive Transaction Review
Ensure OPM Receipt/Void/Return
transactions complete Looking for past due receipts
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Ensure OPM Production transactionscomplete
Review batches in WIP and Completed status Use Production Workbench and query by status
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Proactive Transaction Review
Ensure OPM Inventory transactions complete
Query for ADJI document type transactions Also review for CREI transactions
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Looking for past due shipments
Use Shipping Transaction Form and query by
scheduled ship date
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Proactive Transaction Review
Ensure OPM Transfer transactions complete
Looking for past due inventory transfers Use Inventory Transfer Report
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Allows you to review Inventory Valuation reportthroughout the month and have ability toreconcile prior to month end
Run Test Subledger/Draft Create Accounting
Allows you to identify and correct unexpected
transactions prior to month end
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Conclusion
OPM MAC / SLA module
Shared month end close checklist Proactive transaction review
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Willingness to get along
Bridge the gap between manufacturing and
accounting at month end
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Lessons Learned
Informed manufacturing personnel make forgood cost accountants in the OPMenvironment
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They should not be feared or scared, rathertrained and utilized to benefit the company
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Copyright 2009 ABeam ConsultingNo part of this document may be circulated, quoted, or reproduced for distribution outside of the client organization without prior written approval from ABeam Consulting.
Thank You
Robert [email protected]
(859) 421-2202