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