Enterprise Wide Profitability, System 16

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Has anyone used this module? We are trying to do some fancy stuff with
costing and profitability on individual sales orders. We want to handle
cost using type 4 price adjustments which allow us to setup formulas to book
the cost to a G/L account. We also want to measure the profitability of
individual customers and sales orders. People are pointing us to the
Enterprise Wide Profitability Module (a.k.a. Profit Management), but its a
little obscure as to how it works.

Appreciate any help! Thanks.

Andy Klee
Klee Associates
JD Edwards Certified Professional
Tel: 970 856 4811
www.JDETips.com
 
Hi Andy,

We are currently implementing the EPS module at a distribution company set up by five of the major pharmaceuticals companies to distribute their products nationwide in South Africa. The objective of the exercise is to use Activity Based Costing to drive costs down to individual products in order to determine how to split the costs of running the company among the five principals. The process involves initially driving costs downt to activities and from activities down to products. You can drive costs down to customers by setting customers as a "cost object" (term used by JDE)and using appropriate cost drivers. For example the costs of a call centre can be driven down to customers by using no. of sales orders per customer as a cost driver or no. of sales order lines per customer. These cost drivers can be calculated automatically if they are to be extracted from the sales order, sales order history,item ledger or works order file. These are the only files that can be accessed for automatic cost drivers at present but I believe that two additional files will be available under XE. If the data you require is in other files you will need to populate the cost drivers manually.

If you need any other info let me know.

Han Verburg (using T Brennan userid)
 
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