CO

Performance(Mar’12)

Automation of Expense

Allocation in Oracle 12.1.3

Balaranjith

Raj Gajrani

Date: November 8, 2013

CO

Performance(Mar’12)

About Atul Ltd

• Chemical company based in Gujarat

• Went live with 12.0.6 in 2009 and 12.1.3 in Dec-

12

• Modules : FIN, PO, OM & OPM

• 7 business divisions – 95 OPM enabled plants

• 2752 products produced using 1179 intermediates

and 901 raw materials in 2012-13 year in 68973

batches

CO

Performance(Mar’12)

Need for Allocation

Automation

• PMAC

• Manual Activity

• Time Consuming – To co-ordinate with all

business divisions

• Chances of Errors – due to volume

• Repetitive Efforts for Generating Cost – same

process to be repeated every month

• Delay in Closure of Books of A/c

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Performance(Mar’12)

Steps for Automation of

Allocation Process

• Defining Mass Allocation Formula

• Custom Form For Recording Standard Per Unit

Usage

• Defining Expense Allocation Codes

• Mapping of Allocation Codes with Organizations

• Defining Expense Allocation Basis

• Defining Expense Allocation Expenses

• Custom Program For Deriving Item wise

Allocation Basis

CO

Performance(Mar’12)

Defining Mass Allocation

Formula Navigation: GL Super User -> Journals -> Define -> Allocation

CO

Performance(Mar’12)

Defining Mass Allocation

Formula Navigation: GL Super User -> Journals -> Define -> Allocation -Formulas

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Performance(Mar’12)

Custom Form For Recording

Standard Per Unit Usage

Navigation: OPM Financials -> Setup -> Actual Costs -> Expense Allocations -> Standard

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Performance(Mar’12)

Defining Expense Allocation Codes

& Mapping with Organizations

Navigation: OPM Financials -> Setup -> Actual Costs -> Expense Allocations -> Codes

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Performance(Mar’12)

Defining Expense Allocation Basis

Navigation: OPM Financials -> Setup -> Actual Costs -> Expense Allocations -> Basis

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Performance(Mar’12)

Defining Expense Allocation Expenses

Navigation: OPM Financials -> Setup -> Actual Costs -> Expense Allocations -> Expenses

CO

Performance(Mar’12)

Custom Program For Deriving

Item wise Allocation Basis

Brief Logic

• Org wise, Item wise Production Quantity

• Item-wise Expenses based on production quantity

* Standard usage per unit

• Apportioning with actual expenses and generation

of Item wise allocation basis

• Updating/Inserting records in interface table

CO

Performance(Mar’12)

Monthly Steps

for Allocation Process

• Creation of Statistical Journal Voucher

• Generation of Mass Allocation Entries

• Generation of Item wise Allocation Basis (execution of

Custom Program)

• Execution of Interface package

‘GMF_AllocationDefinition_PUB’ for dubbing

expenses in base table

• Execution of “OPM Cost Allocation Process”

• “GL Expense Allocation Definition Report” for

Verification.

CO

Performance(Mar’12)

THANK YOU