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Shrinkage Rate in Manufacturing and Cost Roll Up

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Summary:

I want some help in understanding Shrinkage Rates in Manufacturing process. I have gone through user guide and understood how shrinkage rates are calculated but could not understand how these shrinkage rates can be included in Cost Roll up. Is there any way that shrinkage rate can be included in work definition?

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I am currently learning and working on manufacturing module where I got to know about the Shrinkage Rates. As per my understanding, Shrinkage Rate is used to capture yield losses in Manufacturing processes and this information is stored in PIM. I want some help in understanding how shrinkage rate gets absorbed in the Manufacturing process and gets cost accounted in Oracle Fusion. Also, I encountered one of the discussions about shrinkage rates (Idea Number: 47100) where it is mentioned that during cost roll up, the shrinkage rates are not included hence resulting in incorrect Costs. As per the Discussion

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