CSP....

CSP- BASICS

• The Unity costing solution is based on Average Cost (receipts)
• To separate costs that are lower than ALC, typically for a specific customer/s, a different part is used
• A CSP part (LM324D^CSP) works as a unique part and has its own Average Cost - SLC
• A part can have multiple CSP parts if required, CSP1, CSP2 etc
• As these are unique parts they have separate cost, PO and Bins. ATP is specific to the CSP part.

CSP - BASICS

• In Aegis the cost of a PO is defined by Sales and passed to Asset via an online form called P Note.
• This applies to DBP as well as any Non Mono or customer specific costs.
• In Oracle the cost for DBP parts are stored as pricelists and picked up by the SO and PO systemically
• Special costs ( and Debits) are stored in an SQR - Supplier Quote Request- and picked up by the SO and PO systemically
• P Note creation is estimated at per year.

CSP - PROCESS

• SQR creation is integrated into the End to End quoting process.
• Sales and Marketing interact via Oracle
• Communication with the Supplier is also integrated and possible via EDI or RosettaNet
• As the process is integrated it is accurate and repeatable. Once a cost is agreed it is always available
• Standard maintenance of extension and renewal is required

CSP - BAsICS

• A new development based on APAC requirement is now in Production
• The cost on a Sales Order will now retain the CSP cost through reservation and post shipment
• For cost separation and to maintain margin, only 1 CSP part is requiredc
• Variances between CSP cost and SLC will be captured as accounting variances
• Each Sales Order will maintain the margin that was quoted based on the CSP cost

CSP - PROCESS

• Sales reporting will be based on the Sales Order margin
• Financial reporting will be based on SLC (Average cost of the CSP part)
• The responsibility for cost lies with Marketing with Sales providing set up and maintenance input

CSP - CONVERSION

• We have found no way to identify CSP costs in AEGIS
• CSP SQR's should exist in Oracle based on QGL
• As we cannot physically split the inventory one part will become either Base or CSP
• This is consistent with EUR conversions
• This ensures the "volume" business is identified and PO's are not placed at DBP

CSP - CONVERSION

• Where transactions are present on DBP and CSP costs, both will ship at SLC
• New transactions for DBP parts will need to be loaded on the Base part.
• Any BSA's - sales agreements - that are created on the CSP part will need to be recreated as required
• This is consistent with EUR conversions
• Suppliers that give Debits and CSP on the same part will need additional focus