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