Previous  Next          Contents  Index  Glossary  Library

Cost Groups

You can define and subsequently use cost groups if the Project Cost Collection Enabled parameter in the Organization Parameters window in Oracle Inventory is set. Cost groups are used to group project related costs. See: Defining Project Information.

Common Cost Group

The Common cost group is seeded when you install Cost Management. This is a multiple organization (multi-org) cost group and is used as the default in organizations that have a Costing Method of Average and the CST: Average Costing Option profile option set to Inventory and Work in Process. These organizations do not, however, have to have their Project Cost Collection Enabled parameter set.

The valuation accounts defined in the Organization Parameters window are used as the defaults for this cost group and cannot be changed nor made inactive. However, in an organization that is Project Cost Collection Enabled the name and description of this cost group can be changed.

If you assign a project to the Common cost group, the project is costed at common inventory costs.

User-Defined Cost Groups

A project must be associated with a cost group. If you do not specifically assign a project to a user-defined cost group, costs for that project are derived using the Common cost group. Cost groups can have more than one project assigned to them. Cost groups can be specific to an organization or available in multiple organizations. If a cost group is assigned to projects that are defined in multiple inventory organizations, it must be defined as a multi-org cost group.

Average costs are calculated and held at the cost group level within each inventory organization; since subinventory valuation accounts cannot be defined at a level lower than the level at which average costs are held, value in every locator belonging to a project in a particular cost group is held in that group's valuation accounts

Through the use of cost groups, an item may have a different cost in different projects as well as a unique cost in common inventory, all within the same organization. Item costs can apply to a single project if each project belongs to a distinct cost group, or apply to a group of projects if all projects in the group are associated to the same cost group. Items in common inventory belong to the common cost group and are normally costed separately from items in projects.

The cost element to expenditure type association is defined at the site level. The sub-element to expenditure type association is defined at the organization level and cannot be defined in organizations that are not project costing enabled.

See Also

Defining Cost Groups

         Previous  Next          Contents  Index  Glossary  Library