How to setup outside processing Procure to use in WIP for standard costing 1.

Create items: Finished Item (N): InventoryItemsMaster Item Item Name: OSP_FIN_ITEM (M) ToolsCopy from Select template as Finished Good Click Done Save

Assign this item to M1 organization

Create one OSP item Item name: OSP_ITEM (N): InventoryItemsMaster Item (M) ToolsCopy from Select template as Outside Processing Item click done Save

OSP Item setting: (T)-Main: Primary Unit of Measure =HRS

(T) Purchasing: Check Purchasable: Set this attribute to Yes to include an item on a purchase order line. Check Outside Processing Item: Set this attribute to Yes to link an outside processing item with an outside resource and to include an item on an outside processing purchase order line. Outside Processing Unit Type Select Resource (If you want to requisition the usage rate or amount of the outside resource for each assembly you move to an outside operation, you should set the Outside Processing Unit Type to Resource). If you want to requisition one outside processing item for each assembly you ship to a supplier, then you should set the Outside Processing Unit Type to Assembly.

Assign to M1 organization. Create subassembly item: (N): InventoryItemsMaster Item (M) ToolsCopy from Select template as subassembly Item name: OSP_SUB_ITEM click done Save.

Create 3 purchased items Purchased item 1: Name: OSP_PUR1 (N): InventoryItemsMaster Item (M) ToolsCopy from Select template as Purchased Item

Save the item and assign the M1 organization Assign the cost for this item in M1 organization (N): Inventorycostitem cost Enter item and click find

After opened Item costs Summary (M1) form

Enter Item OSP_PUR1 (PURCHASED ITEM1) Cost Type -- Pending Click Open, then click Costs

Click Costs button Enter Cost Element -- Material Subelement -- Material Activity -- Move Basis -- Item
Rate or Amount -- 100 Go to next line enter Cost Element -- Material Overhead

Enter subelement -- Matl Hndlg Activity -- Move Basis -- Total Value Rate or Amount -- 10

Save. Purchased item 2: Name: OSP_PUR2 (purchased item2) (N): InventoryItemsMaster Item (M) ToolsCopy from Select template as Purchased Item

Assign to M1 organization (N): Inventorycostitem cost Enter item and click find

Click on cost button. Enter Cost Element -- Material Subelement -- Material Basis -- Item
Rate or Amount -- 100

Save. Purchased item 3: Name: OSP_PUR3 (purchased item3) (N): InventoryItemsMaster Item (M) ToolsCopy from Select template as Purchased Item

Assign to M1 organization (N): Inventorycostitem cost Enter item and click find

Click on cost button. Enter Cost Element -- Material Subelement -- Material Basis -- Item
Rate or Amount -- 100

Save. 2: Define outside Resources: You must define outside resources and link them to outside processing items in order to automatically generate purchase requisitions for outside processing. When assigning outside resources to a routing you also specify a usage rate or amount that determines the quantity you are requisitioning and/or charging to work in process jobs or repetitive schedules. (N) Order ManagementBills of materialsRoutingsResources Create resource named OSP-RES (new) Select Type -- Person Select UOM -- HR Select Charge Type -- PO Move (type PO Move or PO Receipt will perform automatically requisition. Purchasing charges these resource to jobs and repetitive schedules when you receive against purchase order lines linked to the resources. Click Enabled for the outside processing item - and enter OSP_ITEM (OSP Item name) Select Basis -- Item. Select Activity -- Move Click Standard Rate (If you charge at standard, then Purchasing writes any variance between the purchase order actual and the source standard cost to the purchase price variance account of the resource at purchase order receipt) You can also charge at actual PO line price.

Click on rates button Enter Frozen Cost type and Resource Unit Cost of 20.00. Pending Cost type and Resource Unit Cost of 20.00.

Save. 3: Set the department and link to resources (N) Order ManagementBills of materialsRoutings Enter Department -- OSP-DEP (Department name) Enter Description Class -- Vendor Location -- Select WILLINGTON.

Click Resource button in Departments form Click in Resource field under Owned section Select OSP-RES Check Available 24 Hours UOM -- HR

Units -- Enter 10 Group -- Select Vendor Save

Close the form Click Rates button in the Departments form Cost Type -- Select Pending Go to Overhead Rates Section, Overhead -- Select Indirect Activity -- Move Basis -- Resource Value Rate or Amount -- .05 Save

4: setup the Routing (N) Order ManagementBills of materialRoutingsRoutings In item field enter OSP_FIN_ITEM (Finished Good) Go to the Operations section and enter the following: Operation.1 Seq - 10 Department - Assembly Click on Operation Resources.

Go to the Resources section and enter the following: Seq -- 10 Resource -- LBR-ASSY UOM should default in with HR Basis -- Item Usage -- 1, Close Operation Resources form and go back to main Routing form.

Save.

2nd Operation Seq - 20 Department -- OSP-DEP (Department name) Click on Operation Resources.

Go to the Resources section and enter the following: Seq -- 10 Resource -- OSP-RES (Resources name) UOM should default in with HR Basis -- Item Usage -- 2, Close Operation Resources form and go back to main Routing form. Save the Routing.

Do the same routing process for subassembly item with routing name= OSP-SUB-ITEM (Subassembly Item)

5: Defining Bill Of material (N) Order ManagementBills of materialBillsBills Item -- Enter OSP_SUB_ITEM (Subassembly Item) Components Region: First Line Item Seq -- 10 Operation Seq -- select 1 Component OSP_PUR2 (Purchase Item2) Quantity 1 Second Line Item Seq -- 20 Operation Seq -- 1 Component OSP_PUR3 (Purchased Item3) Quantity -- 1

Save

Select the Material Control

Select the Material Control Tab Supply Type -- Assembly Pull (operation pull not available because we have no routing) Subinventory -- Floorstock Save your work.

Go to toolsclick on Rollup costs

Enter cost type= Pending Click ok

Go to viewRequest find

Click on view output button Do the same process for finished good Item -- Enter OSP_FIN_ITEM (Finished Item) Components Region: First Line Item Seq -- 10 Operation Seq -- select 10 Component OSP_PUR1 (Purchase item1) Quantity 1 Second Line Item Seq -- 20 Operation Seq -- 10 Component OSP_SUB_ITEM (Subassembly item) Quantity -- 1

Save Select the Material Control Tab For each component select the following: Supply Type -- Operation Pull Subinventory -- Floorstock

Save your work.

After successfully completed check the output for finished good 6: Create miscellaneous receipt for purchased items (N) InventoryTransactionsMiscellaneous Transaction In Type field and Miscellaneous Receipt, click Transaction Lines Enter quantity for 3 purchased items OSP_PUR1 OSP_PUR2 OSP_PUR3

Save the work. Verify that Items exists in Inventory: (N) InventoryOn-Hand AvailabilityOn-Hand Quantities query for Subinventory = Floorstock 7: create the jobs for subassembly Item N) WIPDiscreteDiscrete Jobs Click on new button Enter Job number -- OSP_SUB_JOB (New) Enter Assembly -- OSP_SUB_ITEM (Subassembly Item) Class - Discrete Status - Released Type - Standard Start Quantity - 50 Start Date - Enter todays date. In TAB Routing enter the Completion Subinventory -- Floorstock Save

Order ManagementWIPMove TransactionsMove Transaction Enter the Job = OSP_SUB_JOB Enter Qty = 100

Save. Check that in Subinventory Floorstock we have the on hand of 100 8: setup Employee Purchasing requires an employee for all requisitions/purchase orders to be created and approved. ResponsibilityUS HRMS Manager. (N) PeopleEnter and Maintain Click on new button Enter Last Name, Gender Action -- Create Employment Person Type -- Employee Social Security Number -- number with format: xxx-xx-xxxx Enter Birthdate Save

Click on Assignment Button Organization -- Vision Operations (B) Correction Job-- MGR.500.Manager

Group-- Financial Position-- MM400.Material manager (this is a position that will have the approval authority for your purchase order) (B) Yes to accept the default values

Assign a Supervisor: (T) Supervisor Name-- Brown, Ms. Casey

Assign a Default Expense Account: (T) Purchase Order Information Set of Books-- Vision Operations Default Expense Account-- 01-110-7740-0000-000

Save the work. Link the Employee to the user: Responsibility System Administrator (N) SecurityUserDefine. Query up Username Add Employee to Person field.

Responsibility Manufacturing and Distribution Manager (N) PurchasingSetupPersonnelBuyers.

Add Employee to Buyer field Enter Ship-to org of M1 Seattle

Click on go and click on Add Buyer Save. 9: Sourcing Rules You can define rules for each outside processing item to help you determine from which supplier to source the item. Creation of the Standard Quotation: (N) PurchasingRFQs and QuotationsQuotations Choose Quotation Type -- Standard Quotation Type Enter Supplier -- Advanced Networking Devices Enter Supplier Site -- Santa Clara Enter Ship-To as M1 Seattle Enter Effective Date - Todays Date Enter Effective through Date - One Year from now Change Status from In-Process to Active Choose Item - OSP_ITEM (OSP Item)

enter a price of 20.00

Save - Take note of the Quotation Number

Creation of the Approved Supplier List Entry (N) PurchasingSupply BaseApproved Supplier List Select M1 organization. Click in the Item Field and choose the Item created from Step 1 -- OSP-ITEM Move to the bottom section of the form -- Choose Direct for the Business field. Enter Advanced Networking Devices in the Supplier field since it was used on the quotation. Enter the Supplier Site SANTA CLARA that was used in this test. Change the status field from NEW to APPROVED.

Switch the tab from KEY ATTRIBUTES to RECORD DETAILS Update Global Field selection from No to Yes - we are making this entry Global for all Organizations.

Save Select the attributes button. Choose Release Method Field and enter Release Using Autocreate Do not enter any values for the Price Update Tolerance Do not enter any values for the Purchasing UOM Choose the bottom portion of the form - in the field TYPE - Enter Quotation Choose the Number field - Hit the List of Values.

Quotation document displaying above you created choose the Line field and select the number 1 for the line.

Save. Creation of Sourcing Rule: (N) PurchasingSupply BaseSourcing Rules Choose Sourcing Rule Name field -- OSP-Advanced Networking Source Choose Description field and enter -- Sourcing Rule for Quotation to Req to PO Select the ALL ORGS radio button to the right of the above two fields Select Effect Date field - enter first portion of the effective date -- todays date drops Select lower section of screen - Type field -- Choose BUY FROM Skip the Org Field Move to the Supplier Field -- select Advanced Networking Devices Move to the Supplier Site field -- select SANTA CLARA - Vision operations Enter Allocation field -- set this to 100% Select the Rank field -- insert a value of 1

Save.

Creation and Explanation of a Sourcing Rule Assignment Set (N) PurchasingSupply BaseAssign Sourcing Rules Enter the field Assignment Set -- enter value OSP_TEST Description -- Creating Assignment Set to test funct for OSP Click underneath the Assigned To box -- Choose Item Select field Item/Category select the Item OSP_ITEM (OSP ITEM) Choose field TYPE -- select Sourcing Rule Choose field SOURCING RULE/BoD -- Hit the List of Values and select the sourcing rule which was created above -- OSP-Advanced Networking Source

Save. Sourcing Rule Assignment Profile Setup and Logic: (N) Purchasing Personal Profiles Query on the profile name with: MRP:Default Sourcing Assignment Set Click in the User Value section Select the newly created assignment Set -- PR_OSP_TEST

Save WIPSetupParameters Select the Outside Processing tab select At operation for Requisition Creation Time

this way, requisitions will be automatically imported into Purchasing immediately upon performing a WIP Move transaction

Save. 10: Create job for Finished Good: (N) WIPDiscreteDiscrete Jobs Click on new button Enter Job number -- OSP_-FIN_JOB (new) Enter Assembly -- OSP_FIN_ITEM (Finished Good) Class -- Discrete Status -- Released Type -- Standard Start Quantity -- 10 Start Date -- Enter todays date. In TAB Routing enter the Completion Subinventory Stores

Save

11: Perform a WIP move transaction to the Osp Item (N) WIPMoveTransactionsMove Transactions Select Job OSP_FIN_JOB (Finished good job) select the first operation 10 from the list of values for From filed and select Queue for Step field. Go to the next row labeled To select OSP operation 20 Go to the Step field and select Queue Go to the Quantity field in the Transaction section. Enter quantity -- 10.

Save. Check with requisition

Note the requisition_header_id For check the item we can query with requisition_header_id in PO_REQUISITION_LINES_ALL Here we can see our OSP item details. Go to purchasingrequisitionsrequisition summary

Click on find button.

Copy the purchased order number. Check whether purchase order is approved or not. After approve Create a receipt based on the purchased order number. Now complete the job for finished item (OSP_FIN_JOB) from Queue to To move as specified in subassembly job. Check finished item in on hand quantity.

Referred Link: https://support.oracle.com/CSP/main/article?cmd=show&type=NOT&doctype=WHITE %20PAPER&id=1179771.1