Flow Manufacturing Costing

Oracle Applications support flow manufacturing and costing for Flow
Manufacturing in both standard and average costing organizations.
Assembly Completions and Return Transactions
You can complete assemblies from and return assemblies to both
scheduled and unscheduled flow schedules using the Work Order–less
Completions window. When you return assembles to a flow schedule,
the components are automatically returned to inventory. Unscheduled
flow schedules, also known as work order–less completions, make it
possible for you to complete and return assemblies without having to
first create a job or repetitive schedule.
When you complete flow schedules, the costs incurred and variances
and costs relieved are processed and reported with respect to the
transaction itself. This costing methodology differs from that used for
discrete jobs, which track and report costs by job, and repetitive
schedules, which maintain and track costs by repetitive assembly/line
combination and allocate them across repetitive schedules.
Transaction Processing
Component backflush transactions, triggered by flow schedule
completion transactions, are automatically costed. The resource and
overhead transactions that are triggered by completion transactions are
likewise automatically costed.
Only one completion transaction and its associated component,
resource, and overhead transactions must be processed each time a
flow schedule is transacted. In other words, these transactions are
processed as a set. Resource and overhead transactions from other
flow schedules or other completion transactions for this same flow
schedule are not processed in this set. This ensures that period balance
information is properly maintained. If any transaction associated with
flow schedule completions fail to process, all associated transactions
are rolled back.
Zero Balance
Under standard costing, all cost transactions and variance transactions
associated with flow schedule completions are processed at the same
time as the Assembly Completion. Therefore the net balance in the
flow schedule is always zero. Flow schedule assembly return
transactions are similarly processed.

Assembly Scrap
Assembly scrap is costed the same way for both standard and average
You can scrap and return scheduled and unscheduled assemblies at any
routing operation. You can scrap and return scrapped assemblies even
if there is no routing. Operation Pull and Assembly Pull components
associated with the scrap operation and prior operations are
automatically backflushed. Assemblies scrapped can be returned, thus
returning the issued components back to inventory.
WIP scrap transactions and WIP return from scrap are available
transaction types in the Work–Orderless Completions window.

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