Costing at MIRACLE Pharma Ltd.:
The Oracle OPM Cost Management
module will be implemented at MIRACLE Pharma Ltd. for Costing of products and
valuation of inventory. At MIRACLE Pharma Ltd. the accounting for product Cost
will be done as per ‘Actual Costing’ methodology which is a significant change
from the Standard costing approach followed so far. The system will account for
the costs on the basis of Actual costing whereas Standard costing will be used
to generate the variances.
The document presents the
features of the Costing solution using OPM Cost Management along with the
potential gap areas.
Introduction to OPM Cost Management:
The OPM Cost management module
will cater to the following:
·
Product Cost based on actual consumption of
ingredients and resources.
·
Batch wise Cost of each product for every
manufacturing plant
·
Valuation of FG, RM and WIP inventory.
·
Report on variance between the Standard Product
Cost and Actual Product Cost
·
Product Cost as well as Batch Cost will be
obtained after every period
OPM Cost management is the
central module for computing Product Cost during manufacturing as well as for
accounting of all Inventory related transactions including Inventory Issue,
Inventory Receipt, Inventory Transfers and Inventory Adjustments. OPM Cost
management is integrated with Oracle Inventory, Oracle OPM Product Development
and Oracle OPM Process Execution modules.