Douglas Volz Consulting

Case Study:Onninen Cost Accounting Case Study

Onninen AS

Onninen’s Business Challenge

Onninen faced multiple Go Live challenges, staffing levels for cost accounting, purchase order pricing, inconsistent inventory values, inaccurate margins, high invoice price variances and inexperience running the Oracle Applications. After supporting the Oracle implementation project, both as Project Advisor and Fulfillment Track Advisory, Douglas Volz Consulting was requested to be Onninen’s Acting Cost Controller in Norway, help select and train staff, and in spite of the above start-up issues, pass year-end audits with no exceptions.

Managing High Transaction Volumes

Many of the larger Oracle EBS customers have over one million material transactions each month. Not only does Onninen have high transaction volumes but they also have over 70 inventory organizations. Most of the standard reports and many of the "out-of-the-box" cost processes cannot deal with this many inventory organizations and volume of transactions.

Solution

Douglas Volz Consulting corrected the G/L for inaccurate inventory, COGS and margins, even with poor PO unit prices and the resultant average cost distortions. Specialized programs were designed, including loading item costs from Excel into the Average Costs (using standard interfaces). Over 35 reports were put into Production for multi-org visibility for inventory, material transactions, invoice price variances, stuck transactions, inventory reserves, A/P Accruals and summary G/L reporting. Over time Doug helped Onninen select and train his replacement and left Onninen with a 300+ page training guide plus a detailed monthly close instruction manual.

 

 

Collaboration and team work with Douglas Volz Consulting

Results


Onninen continues to be self-sufficient and manages all 70 inventory orgs with one Cost Controller. Monthly IPV variances went from extremely high levels to less than 1% of COGS, margins are predictable and Onninen has passed every six-month and year-end audit since Go Live.

Timeframe: 2.5 years

Copyright 2012