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Step #	Description	Standard Costing	Average Costing	Project Mfg. Costing.
1	Set Cost Management Profile Options	Required	Required	Required
2	Set Cost Management Security Functions	Required	Required	Required
3	Define Cost Types	Required	Required	Required
4	Defining Activities and Activity Costs	Optional	Optional	Optional
5	Define Cost Groups	NA	NA	Required
6	Define Material Sub-Elements	Required	Required	Required
7	Define Overheads	Optional*	Optional*	Optional*
8	Define Material Overhead Defaults	Optional*	Optional*	Optional*
9	Associate Expenditure Types with Cost Elements	NA	NA	Required
10	Define Category Accounts	Optional	Optional	Optional
11	Associate WIP Account Classes with Category Accounts	Optional	Optional	Optional
Table 1 - 3. Cost Management Setup Checklist

Step 1 Set your Personal Profile Options

Cost Management personal profile options control defaults within windows as well as data processing options. See: Cost Management Profile OptionsCost Management Profile Options.

Step 2 Set your Security Functions

Cost Management security functions determine what information can be viewed, created, updated, and deleted in certain windows in Cost Management. See: Cost Management Security Functions.

Step 3 Define your Cost Types

You must define cost types. Each cost type contains a unique set of costs and has its own set of cost controls. See: Defining Cost Types.

Step 4 Defining your Activities and Activity Costs

You can define activities, activity rate information, and activity and activity cost type associations. You can assign an activity to any cost. If you use the activity basis type, you can directly assign the activity cost to the item. When you use the other basis types, the cost is based on the sub-element, basis type, and entered rate or amount. The activity defaults from the sub-element; and, if needed, you can override the default. See: Defining Item Costs. See: Defining Activities and Activity Costs.

Step 5 Define Cost Groups

You can define cost groups and use them to group project related costs. See: Defining Cost Groups.

Additional Information: This step is conditionally required if you plan to transfer project costs to Oracle Projects.

Step 6 Define Material Sub-Elements

Material sub-elements classify material costs, such as plastic or metal. A material sub-element has a default activity and a default basis type assigned to it. See: Defining Material Sub-Elements

Step 7 Define Overheads

You can use material overhead and overhead cost sub-elements to add indirect costs to item costs on either a percentage basis or as a fixed amount. See: Defining Overhead

Step 8 Define Material Overhead Defaults

You can define and update default material overhead sub-elements and rates at the organization or category level. When you define items in Oracle Inventory, these defaults are automatically used. This speed data entry when defining items. See: Defining Material Overhead Defaults.

Step 9 Associate Expenditure Types with Cost Elements

You must associate expenditure types with cost elements so that project transfers and the project related costs associated with miscellaneous transactions can be properly processed once they are transferred to Oracle Projects. See: Associating Expenditure Types with Cost Elements.

Additional Information: This step is conditionally required if you to plan to transfer project costs to Oracle Projects.

Step 10 Define Category Accounts (Optional)

You can define category accounts. Category accounts are part of the the product line accounting setup. See: Product Line Accounting Setup and Defining Category Accounts.

Step 11 Associate WIP Accounting Classes with Categories (Optional)

You can associate WIP accounting classes with category accounts. Default WIP accounting classes are part of product line accounting setup. See: Product Line Accounting Setup and Associating WIP Accounting Classes with Category Accounts.