|Average||This cost type holds the current average unit cost of items onhand, and is used to value transactions such as issues and transfers out (see transaction table below for details). Users can update costs in this cost type only by using the average cost update routine. A history is kept of all such update transactions. This cost type is seeded and does not have to be defined by the user.|
|Average Rates cost type||Any user-defined cost type which you use to resource to overhead associations and current overhead rates and any other user-defined subelement rates to be used in cost rollups and to cost applicable transactions.|
Attention: You must define an "Average Rates" cost type to hold subelement rates/amounts. There should be no information associated with this cost type; any information found is ignored. After defining this cost type, you must select it when defining the Average Rates Cost Type parameter in the Organization Parameters window in Oracle Inventory. Rates/amount in this cost type are used, as applicable, until they are redefined. See: Setting Up Average Costing and Defining Costing Information.
|Predefined Cost Type Name||Costing Method||Purpose||Description|
|"Frozen"||Standard||Frozen standard costs||Used to value transactions and inventory balances for organizations that use standard costing. This cost type is not available for organizations using average costing.|
|"Average"||Average||Average costs||Used to value transactions and inventory balances for organizations that use average costing. This cost type is not available for organizations using standard costing.|
|None; user-defined||Average||Average rates||Used to hold resource to overhead associations, current overhead rates, and any other user-defined sub-element rates used in cost rollups and to cost applicable transactions. This cost type is not available for organizations using standard costing. You must define a cost type for average rates.|
|None; user-defined||Either standard or average||All other cost types||Use all other cost types for any purpose: cost history, product cost simulation, or to develop future frozen costs. These costs are not implemented (not frozen) costs. You can transfer costs from all other cost types to update the Frozen cost type.|
|Table 1 - 4.|
Note: If disabled, this cost type name is only available to the inventory organization that creates it. If enabled, only the cost type name is shared, not the costs.
Note: For cost types to be frozen, retain detail for at least the cost element and sub-element.
Overview of Average Costing
Updating Pending Costs to Frozen Standard Costs