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For each cost group, you must define five elemental subinventory valuation accounts, an average cost variance account, and an encumbrance account. You can use different accounts or the same account for all five elemental accounts.

You do not have to use separate accounts to maintain elemental visibility for project related costs. Cost visibility is maintained at the sub-elemental level through the use of expenditure types.

   To define costs groups:

1. Navigate to the Cost Groups window.

2. Enter an alphanumeric name to identify the Cost Group.

3. Enter a cost group Description.

4. Enter an Inactive On date.

As of this date you can no longer assign this cost group to a project, however you can query and process records that use it. If you do not enter a Inactive On date, the cost group is valid indefinitely.

5. Check Multi-Org to indicate that the cost group name can be shared with other organizations.

Note: If not set to Multi-Org, the cost group is only available to the organization that it is created in. If enabled, only the cost group name is shared across organizations.

If the cost group is to include projects that are defined in multiple inventory organizations, it must be defined as a multi-org cost group.

6. Enter account numbers for the following:

When you define a cost group for an organization, the accounts defined in the Organization Parameters window are defaulted but can be overwritten. See: Organization Parameters and Defining Costing Information.

Attention: Locators that reference projects that belong to a cost group use these accounts for inventory valuation. You therefore cannot change an account if there is on-hand inventory in any of these locators.

Material: A general ledger account to accumulate material costs for this cost group. This is usually an asset account.

Material Overhead: A general ledger account to accumulate material overhead or burden costs for this cost group. This is usually an asset account.

Resource: A general ledger account to accumulate resource costs for this cost group. This is usually an asset account.

Outside Processing: A general ledger account to accumulate outside processing costs for this cost group. This is usually an asset account.

Overhead: A general ledger account to accumulate resource or department overhead costs for this cost group. This is usually an asset account.

Average Cost Variance: A general ledger account to accumulate the balances that may occur when transactions are processed for an item whose on-hand inventory is negative. This account represents the inventory valuation error caused by issuing inventory before receiving it. See: Average Cost Variances

Encumbrance: A general ledger account to hold the value of encumbrances against subinventory items.

   To associate WIP accounting classes with the cost group:

1. Choose the WIP Accounting Classes button. The WIP Accounting Classes for Cost Groups window appears.

1. Select a WIP Accounting Class

You can only select any Standard Discrete Accounting Class. See: WIP Accounting Classes and Defining WIP Accounting Classes.

2. Save your work.

See Also