APPLIES TO:

GOAL

Purpose:

Describes how to set up and define a resource.

Scope and Application:

This is intended for those who need to define a resource.

SOLUTION

A. Overview

You can define a resource as anything of value, except material and cash, required to manufacture, cost, and schedule products. Resources include people, tools, and labor purchased from a supplier.

See Bug 18125686 - BOM RESOURCE TYPE SPACE IS NOT AVAILABLE

B. Usage

Use resources to define the time an assembly spends at an operation and the cost you incur at the operation. A resource is anything you require to perform, schedule, or cost, including but not limited to: employees, machines, and outside processing services.
A resource and usage rate for all scheduled activities is required in a routing. Scheduled resources can include queue, setup, run, and move time.

C. Setup Steps and Prerequisites

Navigate to the Resources window: 

1. Bill of Materials: Routings-> Resources 

2. Enter a resource name unique to the organization to describe the resource. For example, you could assign AS1 to signify assembler grade 1, or WE for welder. 

3. Optionally, enter an inactive date after which you can no longer assign this resource. 

4. Select a resource type: Amount, Currency (the set of books currency as defined in Oracle General Ledger), Machine, Miscellaneous or Person. 

5. Enter a unit of measure (UOM) that describes how you measure the resource. (You can only update this if the BOM: Update Resource UOM profile option is set to Yes.) 

6. Select a charge type. When an operation is completed, Oracle Work in Process records the units applied to the job or repetitive schedule in the resource unit of measure for all resources you charge manually or automatically. You can determine how each resource is charged in Work in Process. When an operation completes, Work in Process records the units applied to the job or repetitive schedule in the resource unit of measure. You can charge resources manually or automatically. 

• Manual: Work in Process does not automatically charge this type of resource to a job or repetitive schedule. You must manually charge it to a job or repetitive schedule using Work in Process.
• PO Receipt: Automatically charge this resource upon receipt of a purchase order in Oracle Purchasing. The assemblies are not automatically moved to the next operation upon receipt, so you must manually move them using Work in Process.
• PO Move: Automatically charge this resource upon receipt of a purchase order in Oracle Purchasing and move the assemblies to the Queue intraoperation step of the next operation, or to the 'To move' intraoperation step if this is the last operation.
• WIP Move: Work in Process automatically charges this type of resource to a job or repetitive schedule when you complete an operation.

7. Select a basis type by which to charge and schedule the resource. 

• Item: Charge and schedule the resource where the resource usage quantity is the amount required per assembly unit you make.
• Lot: Charge and schedule the resource where the resource usage quantity is the amount required per job or schedule.

8. Select an expenditure type for this resource.

• If the Project Cost Collection Enabled parameter is set in the Organization Parameters window, you must associate the resource with an expenditure type.
• You can only select expenditure types that belong to the Work in Process expenditure type class.

9. Optionally, enter the supply subinventory if the resource is a machine.

• The system uses the supply subinventory specified for the resource if the routing does not specify a supply subinventory.

10. Optionally, enter the supply locator if the resource is a machine.

• The system uses the supply locator specified for the resource if the routing does not specify a supply locator.

11. Indicate whether to enable the outside processing resource and if so, enter its item number.

• If you specify PO Move or PO Receipt, Oracle Purchasing uses this item when it creates requisitions for your outside processing resource.

12. If this resource services requests for maintaining assets, you can optionally enter the billable item in the Billing region Item field.

• Oracle Enterprise Asset Management (eAM) can use Oracle Bills of Material
  resources to service requests for asset maintenance. Identifying the billable item for
  the resource enables eAM to determine the cost of work performed by the resource
  for the item.

13. Enable the Costed check box to collect and assign costs to this resource, and if so, optionally enter an activity for the resource.

• You can use activities to group resource charges for cost reporting purposes.
• (You cannot view costing information if the Privilege To View Cost Information function is excluded from the responsibility. You cannot update costing information if, in addition, the Privilege To Maintain Cost Information function is excluded.)

14. If the resource is costed, indicate whether to charge jobs and repetitive schedules based on a standard rate you define.

• Or, disable Standard Rate to enter a rate to charge the resource in Work in Process for an internal resource, or derive the rate from the purchase order for an outside processing resource. For outside processing resources, if you charge a job or repetitive schedule at the standard rate, a purchase price variance is computed and posted to the rate variance account. If you charge for all other resources, if you charge a job or repetitive schedule at the actual rate, a resource rate variance is computed and posted to the rate variance account.

15. If this resource is costed, enter an absorption account (general ledger account) used to offset resource charges earned in work in process.

• At period end, you normally compare this account to the resource charges in the general ledger.
• For outside processing resources, the default is the receiving valuation account from Oracle Purchasing, as defined in the receiving options.
• Attention: For outside processing resources, do not change the default receiving valuation account. When you receive an outside processing purchase order, Oracle Purchasing credits the inventory AP accrual account, and debits the receiving valuation account. Bills of Material then debits the work in process outside processing account and credits the receiving valuation account. If you change the above default account, your receiving valuation account will have an incorrect balance.

16. If this is a person type resource, enter the skill necessary for a particular person to act as this resource. Define the skill needed by selecting from the following fields' lists of values:

• Competence
• Skill Level
• Qualification

17. If this resource is costed, enter a variance account (general ledger account) to accumulate resource rate variances for a job or repetitive schedule. For outside processing resources, this is the purchase price variance account.

18. If you have Oracle Manufacturing installed, you can use Resource batching. To enable resource batching, select the Batchable check box in the Batchable region. This enables the other batch fields. See: Setting Up Batch Resources, Oracle Advanced Supply Chain Planning Implementation and User's Guide.

References: The following Oracle Application documentation can be viewed:

Oracle Bills of Material User's Guide, Release 12.1 (Part No. E13688-04), page 1-25.