Cost Rollup Basics

Author: Laura Miller

Overview of the process: The Cost Rollup process explodes the Bill of Material and routing. It calculates the cost of the required components, subassemblies, resources, and overheads. This calculation starts at the bottom of the assembly and moves up to the top level. Cost Rollup is done by cost type and an effective date is required. The default for this is the current date and time. For manufactured items, the Bill of Material and routing is created first, then a cost rollup is done. This is how an item gets costed. The costs are not defined when the item is defined. For purchased items, the Item Cost screen is used. If no transactions exist, then the frozen cost can be entered and saved. If there are transactions, then a pending cost must be entered and then standard cost update is run to set the cost to frozen (standard). For Oracle Applications Release 10.7 and 11, Phantom assemblies are not included in cost rollups. If the supply type on the bill of material is set at phantom, the cost rollup will include the routing costs. The parent assembly, though, will not include the routing costs of that subassembly in the cost of the parent. If the supply type is changed from a phantom, then the cost rollup will include the subassembly routings in the parent assembly previous level costs. For Oracle Applications Release 11.5.X, Phantom assemblies can be included in cost rollups. The assemblies can be costed for Work in Process transactions, in discrete and repetitive environments and for standard and average costing organizations. These assemblies can be set up as any other assembly to include resources and overhead costs.

The Phantom assemblies can be the parent assembly as well as the child assembly. The cost rollup can include the resources and overheads from both levels. There are two Bill of Material parameters that are used to allow the Phantom assemblies to be included in the cost rollup: Inherit Phantom Operation Sequence - this parameter controls the inheritance of the parents operation sequence; Use Phantom Routings - this parameter determines if the resources and overheads are recognized for costing If these parameters are changed after a job is created and a rollup or an update occurs, incorrect variances can be created.

Steps to rollup costs: Cost/Item Costs/Assembly Cost Rollup This can be completed without a report, with a report or as a report only with none of the changes being saved. Cost Rollup - No Report (rolls up costs, commits to the database, no report is printed) Cost Rollup - Print Report (rolls up costs, commits to database, prints report) Temporary Rollup - (rolls up costs, does not commit to database, prints report) To allow the ability to rollup costs to the database, the Privilege to Maintain Cost function is included as part of the user responsibility. To allow the ability to temporarily rollup costs and print the report (but not commit to the database), the Privilege to View Cost function should be added to the users responsibility.

Cost Rollup Parameters 1---Enter the cost type to rollup costs Only pending costs can be rolled up. Frozen costs are then updated from the pending cost. Cost type options include determining -if the bill information is to be saved, -if the component yield is to be included in the cost, -if the cost type defaults to itself or another cost type, -if the previous level information for cost elements, sub-elements, --operations and activities. 2---Choose a full or single level option Full Cost Rollup option This is a Bill of Material explosion for the assemblies to determine the structure to the lowest level off the assembly. Once the bill is exploded, the costs are built for the assembly from the lowest to the top level. This offers the most current cost available for the assemblies. Note: Before running the cost rollup be sure there are no loops in the bill. Single Level Cost Rollup option This looks at only the top level of the bill for each assembly. These costs are then rolled into the parent assembly. This option is used to assign costs to new assemblies where the lower levels are not rolled up. This would allow generation of costs on new assemblies without changing the costs on existing subassemblies. This option can also be used to revalue the lower levels when performing the cost update.

3---Choose range of items All Category Range Specific --- This parameter must chosen to rollup inactive items Zero --- This parameter includes zero cost items in the current and default cost types that have based on Rollups flags checked 4---Print Report Consolidated Bill of Materials --- The consolidated report shows the quantities of each component used in the parent assembly Detail Indented Bill of Materials --- This indicates if material detail and material overhead subelements are to be included; if you are including routing detail (resources, outside processing, overhead subelements) on the report; what number of levels to display on the report 5---Effective Date The default is current date 6---Include unimplemented ECOs The default is no 7---Choose Alternate Bill When choosing this parameter, the primary bill will NOT be rolled up 8---Choose Alternate Routing When choosing this parameter, the primary routing will not be rolled up 9---Specific items -Enter the single item -Enter the category set or specific category --- the default is the category set defined for the costing functional area -Enter a range of items

Tables used for the Cost rollup process BOM_EXPLOSION_TEMP CST_EXPLOSION_TEMP BOM_LISTS CST_ROLLUP_DELETE_TEMP BOM_SMALL_EXPLOSION_TEMP The concurrent program Delete Temporary Rollup Data (CSTCSROL) cleans the BOM_EXPLOSION_TEMP table after the cost rollup. If the table is full because of various reasons, i.e., the rollup was canceled before it completed, then errors will occur. Run cstcsrol.sql at the command prompt. This should resolve the issue. If it doesnt, more meaningful error messages will occur here.

Performance issues: Cost rollup takes hours to complete Apply patches 464107 and 674267. Apply these patches in this order to get to later versions cstcsrol.sql and cstrbicr.rdf. Then rerun cost rollup. If still having problems, check the extents size for the tables. If at 50 when the error occurred it can be safely set to about 121. If still having problems, get trace file with timed statistics. Verify the expected performance. Common Cost rollup errors: MSG-01999 BOMPCEXP ORA-6502 REP-1825 Before report trigger returned False APP-969 Program was terminated by Signal 1 APP-1825 Concurrent manager got error These errors can indicate that max extents need to be increased.

MSG-01999 CST_LOCK_FAILED_CCID REP-1825 Before Report trigger returned false These errors indicate that the cost tables have a lock on them. Clear the locks and rerun the cost rollup. Only one cost rollup can occur at a time. If multiple rollups for single items are being run in parallel, this error will occur repeatedly. If trying to run two or more rollups at the same time, while one of the rollups has the tables locked, the other rollup will wait and try to lock the table 10 times and then error out. Cost Rollup and Indented Bill of Materials are designed to run together but there can be overlap of the clearing of the temp tables that can cause the tables to lock and the error to occur.

Troubleshooting No Cost for Manufactured Items: Check these: BOM/Routing exists for the item ItemCost screen Based on Rollup = Yes Inventory Asset Value = Yes WIP = Build in WIP = Yes (Org) Item Attributes Main Status = Active (or similar) Costing Cost Enabled = Yes (Master) Item assigned to organization No Cost for Purchased Items: Check these: ItemCost Screen enter a pending cost and perform a standard cost update if unable to enter pending cost, set Use Default controls = NO and then enter a pending cost and run standard cost update again. BOM Structure be sure the Include in Rollup flag is checked

**if transactions exist for the item, then you will not be allowed to enter a frozen (standard) cost*** Doubled Costs: If there are costs in the (previous level) and in the user defined section (this level), costs can double. This happens if you change a cost type for an item from based on rollup to not based on rollup and you don't delete the previous level costs, then when you add your user defined costs (this level), you will get both costs rolled up together. One way to remove the rolled-up costs from the previous level is to set Based on Rollup to YES, click on save, then set Based on Rollup = NO. At this point you will be asked if you want to delete the rollup costs, click on yes. Now you should have only your user defined costs(this level).

Cost Rollup/range of items: The item status attribute cannot be the same as the BOM Ready to Delete status parameter . If those two codes are the same, then Cost Rollup assumes that you really do not want those rolled up. To verify this: Compare

Inventory/Item/Org items/main alternative region. item status field to the Bom/Setup/Parametersactive status field under the configuration options.

If they both say the same value (i.e. Active) then when Cost Rollup runs, that item will be skipped. However, you could run the Rollup for that specific item and it will work. The easiest way to fix this problem is to change status for the bom parameter to some other code (i.e. obsolete or inactive for instance).

Useful information to resolve rollup problems: --logfile --parameters used --performance problem: trace file with timed statistics