Costing and DBI for ERP Oracle Process Manufacturing


Costing and DBI are two more differentiators for Oracle. Our costing model is the most robust and flexible in the market, and our Daily Business Intelligence is the only offering that does NOT require a data warehouse to provide enterprise wide analytics.

Similar to Inventory and Quality, Costing and Analysis cover the entire suite. Unlike Inventory and Quality that are foundation components. Costing and Analysis leverage all the manufacturing data.

Costing and DBI for Oracle Process Manufacturing


Costing pulls information from Product Development for standard costing and from Production Execution and Purchasing for actual costing. It also pushes information to Purchasing and Order Management. While Analysis pulls information from all the applications.

OPM Costing

We saw this slide earlier in the Process Overview. I bring it up again here due to the significant importance of this capability within the Oracle solution. Costing and how users can model their cost models with OPM costing, has won deals for us.

So once again Cost Development – Maintains multiple cost methods simultaneously

•Values different sets of items differently.
Example: Item ABC classes can be valued under different cost methods

•Compares Actual and Estimated operating costs

•Maximizes profit margins

•Evaluates make-or-buy decisions

•Analyzes historical trends

Cost Monitoring – Records cost information for each process, resource and burden activity associated with a product

•Monitors purchasing costs by vendor invoice or purchase order receipt

•Monitors acquisition prices for purchases

•Records actual purchasing and production unit costs

•Identifies specific activities that generate the direct and indirect production costs

•Tracks and acts on any unusual cost variations


•Records all costs that are neither directly convertible nor assignable to specific products

•Allocates expenses to items based on collected production statistics

•Supports activity-based costing using the generated data


  • Performs detailed cost analysis

•Compares actual and estimated operating costs

•Produces cost transaction analysis reports

•Analyzes cost trends in the enterprise

•Compares and analyzes current and historical costs by periods, cost models, and items

•Performs a variety of cost variance summaries and consumption analysis


•Imports and Post journals in GL for OPM bookings

•Provides summarized or detailed journals in GL

•Drilldowns from GL to OPM transactions




Leave a Reply

Your email address will not be published. Required fields are marked *