Oracle Cloud PCM is a powerful and flexible application for producing cost allocations that are used in budgeting and actuals financial reporting. In such cases, the allocated results are the end objective. However, by leveraging its flexibility, transparency, and custom calculations capability, PCM can go beyond pure allocations and also serve as a creator of cost rates used for a variety of purposes ranging from manufacturing inventory standard cost valuation to unit cost analysis in healthcare, telecommunications, and financial services. These cost rates can be incorporated into ERP work order/job costing to achieve greater accuracy and transparency of standard costs used for financial reporting. Further, PCM can solve the shortcoming of some ERP systems which do not maintain the separation of material and labor costs as they flow through the production process. This latter ability of PCM can be particularly useful in periods of high inflation such as that being experienced in the present day.
In this session we will review:
• The overall process for standard cost rate setting in manufacturing
• How PCM can fit into the process of unit cost creation in multiple contexts
• How PCM and ERP can mutually co-exist for costing
• Other benefits – managing material cost increases in periods of inflation
This session is for anyone who wants to better understand use of PCM in an analytical context beyond pure allocations and see how it can be a rate generation engine for other purposes such as usage in an ERP. The audience can include admins, developers and power users, but it also can include consumers of cost and profitability information.