Process Manufacturing (OPM) Cost Management

Oracle Process Manufacturing Cost Management supports Standard, Actual and Lot costing types to calculate costs and create reports to analyze data at the most granular level. 

OPM Cost Management was designed for use in the process manufacturing environment. It provides the tools necessary to do the following: 

• Value the cost of goods sold on shipments 
• Calculate inventory valuations in WIP
• Assign values to inventory transactions 
• Calculate purchase price variance (PPV) in WIP 
• Revalue inventory for appreciation 

All material and resource transactions in a “process enabled” Inventory Organization are costed using OPM Costing. The primary functions of OPM Costing are:

Develop and Maintain costs using the following cost methods:

• Standard Costs
• Actual Costs
• Lot Costs

Valuing material and resource transactions in

• Production
• Shipping
• Inventory
• Purchasing
• Inventory Valuation

Monitor and simulate costs using reports and inquiries

Using Oracle Subledger Application, necessary accounting entries are created for all the transactions.