SCM Cloud Cost Accounting vs Oracle EBS Costing

Cost Accounting

Functional Comparison - SCM Cloud Cost Accounting vs Oracle EBS Costing

EBS Description	Translates to Cost Management Cloud
Oracle Costing	Oracle Cost Accounting
Cost Type	Cost Scenario (approximately)
Cost Elements	Cost Element Types
Sub-Elements	Cost Elements (approximately)

(Only the functionalities that are substantially different/ enhanced have been mentioned)

Criterion	Cloud Applications (Release 13 - 21A)	EBS Applications (Release 12.1.x & above)	Cloud Improvement Metrics	Rationale for score
Functionalities : Gaining efficiencies by having efficient business processes supported by Cloud
Cost Organization	A single or group of inventory organizations within same profit center business unit	Always represents a single inventory organization by itself	Improves Efficiency Process Improvement Improves Data Integrity Eliminates Extension/ Workarounds Improves Compliance	Costs can be shared between multiple inventory organizations within the cost organization resulting in easy maintenance and access
Supported Costing Methods	Actual (FIFO) Perpetual Average Standard	LIFO FIFO Standard Average Periodic	Improves Efficiency Process Improvement Improves Data Integrity Eliminate Extension/ Workarounds Improves Compliance	Not suitable for organizations which are mandated to follow LIFO or Periodic cost methods
Costing by Cost Book	Multiple cost representations of same transaction is available using cost books	Transaction can be costed using only one costing method configured at Inventory Organization level	Improves Efficiency Process Improvement Improves Data Integrity Eliminates Extension/ Workarounds Improves Compliance	Powerful cost analysis and reporting with representations of same transaction without creating multiple inventory organizations
Valuation Structure	Option to enable costing at granular levels e.g. Cost Org, Inventory Org, Subinventory, Locator, Lot, Serial, Grade or Item	Only option is to enable costing at Inventory Organization level	Improves Efficiency Process Improvement Improves Data Integrity Eliminates Extension/ Workarounds Improves Compliance	Enables flexibility to support optimal granularity for cost definition
Cost Elements	Unlimited cost elements can be configured and grouped under Material, Overhead, Resource, Adjustment, Profit in Inventory cost element types	Only Material, Material Overhead, Resource, Outside Processing, Overhead cost elements can be configured	Improves Efficiency Process Improvement Improves Data Integrity Eliminates Extension/ Workarounds Improves Compliance	Provides detailed recording along with audot trail
Cost Profile	Combination of valuation structure, cost elements and costing method that can be assigned to each item	Not applicable for discrete manufacturing; similar to fiscal policy for process manufacturing	Improves Efficiency Process Improvement Improves Data Integrity Eliminates Extension/ Workarounds Improves Compliance	Flexible accounting of each cost transaction based on cost profile reducing adjustments
Cost Analysis	Better cost comparison between one or more cost scenarios	Cost type comparison report is not as effective	Improves Efficiency Process Improvement Improves Data Integrity Eliminates Extension/ Workarounds Improves Compliance	Graphical Hierarchical view with details of rolled up costs providing better visibility into current and future costs
Expense Pools	Expense accounts that can be absorbed as overhead costs. Provides simple allocation rules	Resources and overheads had a single absorption account and no allocations	Improves Efficiency Process Improvement Improves Data Integrity Eliminates Extension/ Workarounds Improves Compliance	Multiple absorption accounts and simple allocation rules may eliminate the need to do allocations in GL or EPM
Cost Scenario	Provides one time use of scenario to update item costs, resources and overhead rates. Becomes non updatable once costs are published	Same Cost Type can be reused multiple times for cost roll up and cost update	Improves Efficiency Process Improvement Improves Data Integrity Eliminate Extension/ Workarounds Improves Compliance	Triniti's costing solution can handle complex cost structures across multiple organizations and factor yield based costing
Cost Rollup	Costs have to be rolled up separately in each organization	Supply chain cost rollup spans across multiple organizations	Improves Efficiency Process Improvement Improves Data Integrity Eliminate Extension/ Workarounds Improves Compliance
Yield/Shrinkage Costing	This feature is not available in fusion application	Operation yields are considered during item cost rollup and are costed accordingly	Improves Efficiency Process Improvement Improves Data Integrity Eliminate Extension/ Workarounds Improves Compliance
WIP Accounting Class	This feature has been replaced with transaction based account mapping	WIP transactions are costed using the accounts defined under WIP accounting class	Improves Efficiency Process Improvement Improves Data Integrity Eliminates Extension/ Workarounds Improves Compliance	Enhanced accounting. Cost Accounting decoupled from physical transactions
Inventory Accounting/ Cost Groups	This feature has been replaced with transaction based account mapping	Inventory transactions are costed using the accounts defined at inventory organization, subinventory and cost groups (Oracle WMS only)	Improves Efficiency Process Improvement Improves Data Integrity Eliminate Extension/ Workarounds Improves Compliance	Setting up WMS is not required
Controlling Overhead Absorption	Control absorption overhead absorption for specific transactions, e.g. purchase order receipt, while not absorbing overheads for other transactions, such as miscellaneous receipts or subinventory transfers	This functionality is not available	Improves Efficiency Process Improvement Improves Data Integrity Eliminates Extension/ Workarounds Improves Compliance	Minimize manual adjustments
Ability to Change Accounting	Account mapping can be changed at any point of time	Most of the accounts are frozen once transactions are recorded	Improves Efficiency Process Improvement Improves Data Integrity Eliminates Extension/ Workarounds Improves Compliance	Eliminates the need to create new organizations and subinventories if accounts need to be changed
Period Close Dependency	Option to enforce closing of Subledger period before closing GL period	No such dependency can be configured	Improves Efficiency Process Improvement Improves Data Integrity Eliminates Extension/ Workarounds Improves Compliance	Enforces discipline and prevents mis-steps
Migration/ Conversion : Quick and reliable path to cloud
Cost Import	MS Excel based templates have been provided	Standard templates are not available in EBS	Improves Efficiency Process Improvement Improves Data Integrity Eliminate Extension/ Workarounds Improves Compliance	Faster migration to cloud with simplified cost import process
Reporting and Analytics : Easy, advanced visualizations
Reports	Highly flexible reporting providing excellent data visualization are available using Oracle Transactional Business Intelligence (OTBI)	Limited standard reports availability and requires development of custom reports	Improves Efficiency Process Improvement Improves Data Integrity Eliminate Extension/ Workarounds Improves Compliance	Fusion applications provide high level of flexibility to maximize the use of data using actionable graphs, machine learning and artificial intelligence
Costing Dashboard	User interactive and actionable dashboards are easily configurable	No standard dashboard available in application	Improves Efficiency Process Improvement Improves Data Integrity Eliminate Extension/ Workarounds Improves Compliance
Cost Analysis Groups	Used for reporting purposes	Not applicable for discrete manufacturing; similar concept for process manufacturing	Improves Efficiency Process Improvement Improves Data Integrity Eliminate Extension/ Workarounds Improves Compliance