Setting Up the Product Costing and Manufacturing Accounting Systems

This chapter provides overviews of user-defined codes (UDCs) for Product Costing and costing information setup and discusses how to:

• Specify accounting cost quantities for standard costs.

• Specify item cost levels.

• Specify methods and costs for items.

• Specify manufacturing constants for Product Costing and Manufacturing Accounting.

• Set up standard rate and factor codes.

• Assign values to user-defined cost components.

• Set up simulated rates for work centers.

• Set up general ledger class codes.

• Define manufacturing AAIs.

Note. Before you can use the JD Edwards EnterpriseOne Product Costing and Manufacturing Accounting systems, you need to define certain information that the system uses during processing. The settings might vary depending on whether you are using standard or actual accounting for an item.

Understanding UDCs for Product Costing

Many fields throughout the JD Edwards EnterpriseOne Product Costing and Manufacturing Accounting systems require UDCs. UDCs enable you to establish and maintain a table that defines valid codes for various types of information to meet the needs of the organization. Codes are categorized by system and code type.

This table lists the UDCs that are used by the JD Edwards EnterpriseOne Product Costing and Manufacturing Accounting systems:

Example: Setting Up Cost Bucket Codes for Costed Bills of Material

You can group similar cost components for review and reporting purposes. For example, you can define A1 and A2 cost components as Purchasing. You do this by assigning them the same sequence number in the Description 2 field. The sequence number also determines in which order the groups appear on costed bill inquiries and reports. You can then use the costed bill inquiries and reports to review the total costs for the group Purchase.

Each cost bucket can contain several defined cost components.

This example illustrates how you might define the buckets and UDCs:

This example of UDC 30/CB illustrates how you might define the UDCs in the software:

Understanding Costing Information Setup

You can set up the JD Edwards EnterpriseOne Product Costing and Manufacturing Accounting systems to meet specific manufacturing environment needs. The system uses the values that you define to determine the costs of the items that you manufacture.

Note. If you use either of the actual costing methods, you do not complete the task for setting up accounting cost quantities.

Specifying Accounting Cost Quantities for Standard Costs

The system uses accounting cost quantities to determine the allocation of fixed costs for an item. Accounting cost quantities represent the standard quantity of a work order or rate schedule for this item. During cost rollup, the system divides the fixed costs by the accounting cost quantity that you specify to determine a per unit fixed cost.

This section discusses how to specify accounting cost quantities for standard costs.

Note. If you use either of the actual cost methods (02 or 09) for an item, you do not need to complete this task.

Form Used to Specify Accounting Cost Quantities for Standard Costs

Specifying Accounting Cost Quantities for Standard Costs

Access the Additional System Info form.

Accounting Cost Qty (accounting cost quantity)

Enter the amount that the system uses in cost rollup to determine the allocation of setup costs. The system totals the setup costs and divides the sum by this quantity to determine a per-unit setup cost. The default value is 1.

Specifying Item Cost Levels

This section provides an overview of item cost levels and discusses how to specify item cost levels.

Understanding Item Cost Levels

The cost level that you assign to an item indicates the level at which the system maintains costs. You determine whether the system maintains one overall cost for an item (cost level 1) or a different cost for the item in each branch/plant (cost level 2). The system can also maintain a different cost for each location and lot within a branch/plant (cost level 3).

This list applies to using cost level 3:

• Configured items must be cost level 3.

• If you use Actual Costing (09), you should use cost level 3.

• In Standard Costing, cost level 3 is not supported.

After you have entered cost information, do not change an item's cost level on this form. To change an item's cost level, use the Item Cost Level Conversion program (R41815).

Forms Used to Specify Item Cost Levels

Specifying Item Cost Levels

Access the Item Master Revisions form.

To set up an item cost level:

1. Select Basic Item Data and complete or review the Inventory Cost Level field.

   The inventory cost level is a code that indicates whether the system maintains one overall inventory cost for the item, a different cost for each branch/plant, or a different cost for each location and lot within a branch/plant. The system maintains inventory costs in the Inventory Cost table (F4105). Values are:

   1: Item level

   2: Item/Branch level

   3: Item/Branch/Location level

2. Select Lot Processing and complete the Lot Process Type field if you use Actual Costing and you entered 3 as the inventory cost level.

   The lot process type is a code that indicates whether lot or serial number is assigned. Lot and serial number processes use the Lot Master table (F4108). Values are:

   0: Lot assignment is optional.

   You can manually assign numbers. Quantity can be greater than one. (Default)

   1: Lot assignment is required.

   The system assigns numbers using the system date in YYMMDD format. Quantity can be greater than one.

   2: Lot assignment is required.

   The system assigns numbers in ascending order using Next Numbers. Quantity can be greater than one.

   3: Lot assignment is required.

   You must manually assign numbers. Quantity can be greater than one.

   4: Serial number assignment is optional except during shipment confirmation.

   Quantity must not exceed one.

   5: Serial number assignment is required.

   The system assigns numbers using the system date in YYMMDD format. Quantity must not exceed one.

Specifying Methods and Costs for Items

This section provides an overview of methods and costs for items and discusses how to:

• Set processing options for Cost Revisions (P4105).

• Specify methods and costs for items.

Understanding Methods and Costs for Items

You must provide cost information for each of the items so that the system can track inventory costs. When you define an item with cost level 2 or 3, you specify the cost method that the system uses to determine an item's cost for sales transactions, inventory transactions, and purchase orders in the Branch/Plant Constants program (P41001). You can override the values in the branch/plant constants for a particular item at the item branch/plant level.

For example, you can specify that the system use the weighted average cost method to determine the inventory cost for an item and use the last-in cost method to determine the item's unit cost for purchase orders.

You can set up the JD Edwards EnterpriseOne Manufacturing Accounting system for these costing types:

For each cost method that you assign to an item, you must also specify a cost or let the system calculate it. For example, to use the actual, or manufacturing last, cost method for an item, you could enter an initial cost or let the system update it with the last manufactured cost.

You can set up UDC (40/CM) to define cost methods. For example, you might want to establish a cost method to maintain a history of last year's costs. Codes 01 through 09 are hard-coded and cannot be altered. Codes 10 through 19 are reserved for the JD Edwards EnterpriseOne system to use and cannot be assigned.

Note. You can remove a cost method for an item if it is no longer applicable. If you try to remove the sales and inventory or purchasing cost method, the system displays a warning message. The system does not delete the cost method, but updates it to a cost of zero.

Form Used to Specify Methods and Costs for Items

Setting Processing Options for Cost Revisions (P4105)

These processing options control default processing for the Cost Revisions program.

Process

This processing option controls whether you can change standard costs.

Interop

This processing option controls whether interoperability is enabled.

Flex Acct

This processing option controls whether flex accounting is enabled.

Specifying Methods and Costs for Items

Access the Cost Revisions form.

Sales/Inventory	Enter a UDC (40/CM) that indicates the cost method that the system uses for the inventory value and to calculate the cost of goods that are sold for the item. Cost methods 01–19 are reserved for JD Edwards EnterpriseOne system use. If you maintain costs at the item level, the system retrieves the default value for this field from the data dictionary. If you maintain costs at the item and branch/plant level, the system retrieves the default value from Branch/Plant Constants.
Purchasing	Enter a UDC (40/CM) that indicates the cost method that the system uses to determine the cost of the item for purchase orders. Cost methods 01–19 are reserved for JD Edwards EnterpriseOne system use. If you maintain costs at the item level, the system retrieves the default value for this field from the data dictionary. If you maintain costs at the item and branch/plant level, the system retrieves the default value from Branch/Plant Constants.
Cost Method	Enter a UDC (40/CM) that specifies the basis for calculating item costs. Cost methods 01 through 19 are reserved for use by the JD Edwards EnterpriseOne system.
Unit Cost	Enter the cost for one primary unit of this item, based on the corresponding cost method. You can change the monetary amount for any cost method at any time except Standard (07), which is controlled by a processing option. Best practice for changing 07 costs is running the Frozen Cost Update program (R30835). If you change the amount for the cost method that you use to value inventory and track costs of goods sold, the system applies the new amount to the on-hand quantity of the item and creates journal entries to account for the difference between the old and the new amounts. Certain programs update the dollar amount for some cost methods. Examples include: Last-in method The system interactively updates this unit cost based on the last cost of the item at the time of a purchase order receipt or after an inventory adjustment. Weighted average method The system calculates and updates this amount by adding transaction quantities, adding transaction costs, and dividing the total cost by the total quantity. Purchase method The system updates similarly to the last-in method, but without landed costs.

Note. If you enter a cost method for sales and inventory or purchasing and do not set up a cost amount for that method, a warning message appears. If you do not enter a cost amount for the cost method, the system assigns a cost of zero.

Specifying Manufacturing Constants for Product Costing and Manufacturing Accounting

This section provides an overview of manufacturing constants and discusses how to specify manufacturing constants for Product Costing and Manufacturing Accounting.

Understanding Manufacturing Constants

You must define product costing and manufacturing accounting information that is unique to the branch/plant.

You use the Manufacturing Constants program (P3009) to specify this cost calculation information:

• Whether to maintain costs at the work center level or the cost component level.

• Which overhead costs to calculate.

• Whether to consider work center efficiency when calculating direct labor and overhead.

• Whether overhead costs are entered as percentages or rates.

If you use Actual Costing, you can specify the sources for labor and machine rates that the system uses to calculate labor and machine costs.

Form Used to Specify Manufacturing Constants for Product Costing and Manufacturing Accounting

Specifying Manufacturing Constants for Product Costing and Manufacturing Accounting

Access the Manufacturing Constants Revision form.

Costing Options

Select the Costing Options tab.

Cost by Work Center	Enter a value, maintained in the Manufacturing Constants program (P3009), that indicates whether the system tracks cost variances for discrete and process items on a summarized level in the Item Cost Component Add-Ons table (F30026) or on a detailed level in the Item Cost Component Detail table (F300261). Values are: Y: Yes. Maintain costs on a detailed level by cost type component and work center. N: No. Maintain costs on a summarized level by cost type component only.
Modify cost by Work Center Efficiency	Specify whether the cost rollup creates cost component B4 (for labor efficiency) based on the direct labor value (cost component B1) and the Work Center Efficiency percentage from the Work Center Master table (F30006). To create cost component B4, click the Modify Cost by Work Center Efficiency option under the Costing Options heading.
Include Work Center Eff. in Overhead (include work center efficiency in overhead)	Specify whether the cost rollup includes work center efficiency when you calculate overhead values if you specified that you want to modify costs by work center efficiency. To include work center efficiency, click the Include Work Center Eff. in Overhead option under the Costing Options heading.
Include Var. Labor Overhead in cost (include variable labor overhead in cost)	Specify whether the cost rollup creates cost type component C3 (for variable labor overhead) in the Item Cost Component Add-Ons table (F30026). To create cost component C3, click the Include Variable Labor Overhead in Cost option under the Costing Options heading.
Calculate Var. on Setup Labor (calculate variable on setup labor)	Specify whether the cost rollup includes setup labor expenses (cost component B2) in the total that is used to calculate variable setup overhead (cost component C3). To include setup labor expenses, click the Calculate Var. on Setup Labor option under the Costing Options heading.
Calculate Var. on Direct Labor (calculate variable on direct labor)	Specify whether the cost rollup includes direct labor expenses (cost component B1) in the total that is used to calculate variable labor overhead (cost component C3). To include direct labor expenses, click the Calculate Var. on Direct Labor option under the Costing Options heading.
Include Fixed Labor Overhead in cost	Specify whether the cost rollup creates cost component C4 (for fixed labor overhead) in the Item Cost Component Add-Ons table (F30026). To create cost component C4, click the Include Fixed Labor Overhead in Cost option under the Costing Options heading.
Calculate Fixed on Setup Labor	Specify whether the cost rollup includes setup labor expenses (cost component B2) in the total that is used to calculate fixed setup overhead (cost component C4). To include setup labor expenses, click the Calculate Fixed on Setup Labor option under the Costing Options heading.
Calculate Fixed on Direct Labor	Specify whether the cost rollup includes direct labor expenses (cost component B1) in the total that is used to calculate fixed labor overhead (cost component C4).
Include Var. Machine Overhead in cost	Specify whether the cost rollup creates cost component C1 (for variable machine overhead) in the Cost Components table (F30026). To create cost component C1, click the Include Var. Machine Overhead in Cost option under the Costing Options heading.
Include Fixed Machine Overhead in cost	Specify whether the cost rollup creates cost component C2 (for fixed machine overhead) in the Item Cost Component Add-Ons table (F30026). To create cost component C2, click the Include Fixed Machine Overhead in Cost option under the Costing Options heading.
Machine Rate Source	Enter a value that specifies the source for machine rates when the system calculates routing costs in the Production Costs (F3102) table. Values are: 1: Work Center Rates table (F30008). 2: Equipment Rates table (F1301)
Labor Rate Source	Enter a value that specifies the source for labor rates when the system calculates the routing costs in the Production Costs (F3102) table. Values are: 1: Work Center Rates table (F30008) 2: Employee Labor Rates table (F00191)
Overheads	Specify whether values for overhead fields (cost components C1 through C4) in the Work Center Rates table (F30008) are expressed as percentages or rates. To specify whether the system expresses the overhead fields as percentages or rates, click either Percentages or Rates under the Overheads heading.

See Also

Setting Up Manufacturing Constants

Setting Up Standard Rate and Factor Codes

This section provides an overview of standard rate and factor codes and discusses how to set up standard rate and factor codes.

Understanding Standard Rate and Factor Codes

Standard rate and factor codes represent overhead costs or other indirect costs that cannot be attributed directly to a certain production process or operation, but must be accounted for in the costs of an item. These types of costs include utilities, insurance, research and development costs, rent or lease payments, and other overhead or general operating costs.

Note. Rate and factor codes are user-defined, but to maintain them, you must access the Standard Rates program (P00191) from the menu. You cannot change them in the UDC tables with the same label. For example, if you enter 30 and CR on the Work With User Defined Codes form, you open the Critical Work Center UDC table, not the standard rates.

The Cost Simulation - Build Temp program (R30812) uses the rates and factors that you define to calculate some of the costs that appear in the Cost Components program (P30026).

Form Used to Set Up Standard Rate and Factor Codes

Setting Up Standard Rate and Factor Codes

Access the Enter Generic Message/Rates form.

To set up standard rate codes:

1. Select Costing Rates and click Select.

2. On Enter Generic Message Rates, complete these fields and click OK:

   • Code

     Enter a code that corresponds to a record that the Enter/Change Cost Components program (P30026) uses in conjunction with the factor code to calculate extra costs. This code must be set up in UDC table 30/CR.

   • Description

     Enter a description of the code.

   • Rate

     Enter a code used to define rate information in the General Rate/Message Records table (F00191). The rate with up to four decimal places is used to calculate the extra costs for this code.

To set up standard factor codes:

1. Select Costing Factors and click Select.

2. On Enter Generic Message Rates, complete these fields and click OK:

   • Code

   • Description

   • Rate

Assigning Values to User-Defined Cost Components

This section provides an overview of user-defined cost-component values, lists prerequisites, and discusses how to assign values to user-defined cost components.

Understanding User-Defined Cost Component Values

After you set up cost components and standard rate and factor codes, you must assign a monetary value to each. These values are added to the net amount of each item that you set up. You can assign a net-added value manually, or you can assign a predefined value.

You can also assign a calculated value based on another cost component's total value. In this case, the system calculates the net added value based on the total for an existing cost component. In addition, you can assign a calculated value based on another cost component's net-added value. The system calculates the net-added value based on the net-added value for an existing cost component. In both circumstances, the system calculates this value when you enter information in the Enter/Change Cost Components program (P30026). The costs are then rolled up into the cost of the item when you run the Simulate Rollup program (R30812).

The system can calculate the net added value by multiplying a rate and factor. If you enter both amounts, the system multiplies the two numbers to calculate the net added cost for the cost component for that item.

Prerequisites

Before assigning values to user-defined cost components you must:

• Set up the cost components in UDC table 30/CA.

• Set up the standard rate and factor codes.

Form Used to Assign Values to User-Defined Cost Components

Assigning Values to User-Defined Cost Components

Access the Enter Cost Components form.

To assign a net added value manually:

On Enter Cost Components, complete the Simulated Net Added field for the record that you need to assign a net added value, and then click OK.

To assign a net-added value to the cost component, enter the appropriate value.

Note. The program displays manually entered costs in the Simulated Total field.

To assign a predefined value:

On Enter Cost Components, complete one of these fields and click OK:

• Sim Fac Code (simulated factor code)

  Select one of the values that you defined for the factor code (30/CF) in the Generic Message/Rates table (F00191). The system multiplies the value in this field with the value in the Simulated Rate field.

  Note. To review the valid factor codes, use the Search button or select Factors from the Form menu.

• Simulated Rate Code

  Select one of the values that you defined for the rate code (30/CR) in the Generic Message/Rates table (F00191). The system multiplies the value in this field with the value in the Sim Fac Code field.

  Note. To review the valid rate codes, use the Search button or select Rates from the Form menu.

To assign a calculated value based on another cost component's total value:

1. On Enter Cost Components, select a cost component type and type & followed by the cost component code in the Sim Fac Code field.

   To assign a value to a cost component based on the total value of another cost component, you must enter specific information in this field: & followed by the based on cost-component code.

   Because of the way in which the system rolls up the costs, the cost component that you reference must come before the cost component that you are defining. For example, to define cost component X2, you can reference cost component X1 by entering &X1 in this field, but you cannot define cost component X1 by referencing cost component X2.

2. Complete the Simulated Rate Code or Simulated Rate field and click OK.

   The system retrieves the total value or net-added value for the based on cost component and multiplies it by the rate value that you indicated.

To assign a calculated value based on another cost component's net-added value:

1. On Enter Cost Components, complete the Cost Type field.

2. Type * followed by the cost component code in this field:

   • Sim Fac Code

     To assign a calculated value based on another cost component's net added value, you must enter specific information in this field: * followed by the based on cost-component code.

     Because of the way in which the system rolls up the costs, the cost component that you reference must come before the cost component that you are defining. For example, to define cost component X2, you can reference cost component X1 by entering *X1 in this field, but you cannot define cost component X1 by referencing cost component X2.

   • Complete the Simulated Rate Code or Simulated Rate field and click OK.

     The system retrieves the total value or net-added value for the based on cost component and multiplies it by the rate value that you indicated.

To assign a calculated value by multiplying a rate and a factor:

On Enter Cost Components, select a cost component type and complete one or both of these fields:

• Simulated Rate Code

• Simulated Rate

  The system retrieves the total value or net-added value for the based on cost component and multiplies it by the rate value that you indicated.

To assign a value for actual costs:

On Enter Cost Components, enter a value in the Frozen Net Added field, and click OK.

Note. Do not run R30812, or all inventory will be revalued for the X cost amount.

Setting Up Simulated Rates for Work Centers

This section provides an overview of simulated rates, lists a prerequisite, and discusses how to create simulated rates for work centers.

Understanding Simulated Rates

You can effectively manage changes to a work center by tracking rates for labor and machine costs. You can update simulated rates for machine and labor hours by work center and cost method. The system uses these values in other manufacturing calculations, such as those that are used in costed routings, labor rate variance reports, and direct labor efficiency reports.

If you use standard costing, you must set up the simulated rates for work centers.

If you use actual costing and do not want to use labor or machine rates, you can use work center rates. You must make this decision when you set up the manufacturing constants. You can also set up the work center rates even if you have chosen labor or machine rates. The system uses the work center rate as the default rate if no other rates have been chosen.

Prerequisite

Before you set up simulated rates for work centers, you must set up work centers.

See Creating Work Centers.

Form Used to Set Up Simulated Rates for Work Centers

Creating Simulated Rates for Work Centers

Access the Work Center Rate Revisions form.

Work Center	Review the number that identifies a branch, plant, work center, or business unit.
Direct Labor	Enter a rate, in cost per person per hour, that the system uses with the run labor hours of the associated routing to calculate the standard run labor cost.
Setup Labor	Enter a rate that the system uses with the setup labor hours of the associated routing to calculate the standard setup labor cost.
Labor Variable O/H (labor variable overhead)	Enter a rate or percentage, as determined on Manufacturing Constants, that is used to calculate the standard variable labor overhead cost. If this field is a rate, it is the cost per hour. If this field is a percentage, it is the percentage of direct labor. Enter percentages as whole numbers. For example, enter five percent as 5.00.
Labor Fixed O/H (labor fixed overhead)	Enter a rate or percentage, as determined on Manufacturing Constants, to use to calculate the standard fixed labor overhead cost. If this field is a rate, it is the cost per hour. If this field is a percentage, it is the percentage of direct labor. Enter percentages as whole numbers. For example, enter five percent as 5.00.
Machine Run	Enter a rate that the system uses with the run machine hours of the associated routing to calculate the standard machine labor cost.
Machine Variable O/H (machine variable overhead)	Enter a rate or percentage, as determined on Manufacturing Constants, to use to calculate the future standard machine overhead cost. If this field is a rate, it is the cost per hour. If this field is a percentage, it is the percentage of machine run. Enter percentages as whole numbers. For example, enter five percent as 5.00.
Machine Fixed O/H (machine fixed overhead)	Enter a rate or percentage, as determined on Manufacturing Constants, to use to calculate the standard fixed machine overhead cost. If this field is a rate, it is the cost per hour. If this field is a percentage, it is the percentage of machine run. Enter percentages as whole numbers. For example, enter five percent as 5.00.

See Also

Entering Costing and Accounting Information for Work Centers

Setting Up General Ledger Class Codes

This section provides an overview of general ledger class codes and discusses how to set up general ledger class codes.

Understanding General Ledger Class Codes

General ledger (GL) class codes are used by the AAIs to determine which accounts the system posts transactions to for specific items.

You set up the GL class code on the Item Branch/Plant Info form. The system then copies that value to the Item Location Revision program (P41024) and the AAIs use the GL class code from the Item Location table (F41021).

Because the system generates journal entries based on GL class codes and AAIs, you should set up the class codes carefully. Generally, the AAIs are set up in collaboration with the accounting department.

Forms Used to Set Up General Ledger Class Codes

Setting Up General Ledger Class Codes

Access the Work With Item Branch form.

To set up ledger class codes:

1. Complete the Item Number field and select Find on the Work With Item Branch form.

2. Select a record and click Select.

3. Select Basic Branch/Plant Data, complete the G/L Class field, and click OK on the Item/Branch Plant Info form.

4. On Work With Item Branch, select Location Revisions from the Row menu.

5. Select a location and click Select on Work With Item Locations.

6. Complete the Class Code field or accept the default value on Location Revisions.

7. Click OK.

Defining Manufacturing AAIs

This section provides an overview of manufacturing AAIs and discusses how to:

• Set processing options for Automatic Accounting Instructions (P40950).

• Define manufacturing AAIs.

Understanding Manufacturing AAIs

Each transaction for which the system creates journal entries has AAIs that instruct the program to post to specific accounts in the general ledger. User-defined AAIs connect manufacturing accounting, the chart of accounts, and financial reporting. You should create AAIs for each unique combination of company, transaction, document type, general ledger class, and cost component.

AAIs use these five keys to find the object account number to use to create general ledger entries for transactions:

• Company number.

• Work order document type.

• General ledger class code.

• Cost component.

• Transaction doc type (except AAI 3120 and 3401).

To retrieve an AAI, the system searches first for an exact match between company and the general ledger class code. If it does not find one, it searches for the default company and the item's general ledger class code. If it does not find a match, it searches for the company and uses **** (four asterisks) for the general ledger class code.

Each AAI or record type points to a specific object account in the general ledger. Business unit and a subsidiary can also be supplied in the AAI table or supplied by default from other sources.

Manufacturing AAIs are defined at the 3000 level, as illustrated in this table:

Form Used to Define Manufacturing AAIs

Setting Processing Options for Automatic Accounting Instructions (P40950)

These processing options control default processing for the Automatic Accounting Instructions program.

Defaults

These processing options control default settings for entering and retrieving AAI information.

Defining Manufacturing AAIs

Access the Account Revisions form.

Co (company)	Specify the company. The company code must already exist in the Company Constants table (F0010) and must identify a reporting entity that has a complete balance sheet. At this level, you can have intercompany transactions. Note. You can use company 00000 for default values such as dates and AAIs. You cannot use company 00000 for transaction entries.
Do Ty (document type)	Enter a document type. The document type value is a UDC (00/DT) that identifies the origin and purpose of the transaction. The system reserves several prefixes for document types, such as vouchers, invoices, receipts, and timesheets. The reserved document type prefixes for codes are: P: Accounts payable documents R: Accounts receivable documents T: Time and Pay documents I: Inventory documents O: Purchase order documents S: Sales order documents Manufacturing transactions use these values: IM: Material issue IH: Routing transactions IC: Completions IS: Parent scrap IV: Variance
Or Ty (order type)	Enter a work order document type. The order type is a UDC (00/DT) that identifies the type of document. This code also indicates the origin of the transaction. The JD Edwards EnterpriseOne system has reserved document type codes for vouchers, invoices, receipts, and timesheets, which create automatic offset entries during the post program. (These entries are not self-balancing when you originally enter them.) These document types are defined by the JD Edwards EnterpriseOne system and should not be changed: P: Accounts Payable documents. R: Accounts Receivable documents. T: Payroll documents. I: Inventory documents. O: Purchase Order Processing documents. J: General Accounting/Joint Interest Billing documents. S: Sales Order Processing documents.
Cost Type	Enter a code that designates each element of cost for an item. Examples of the cost object types are: A1: Purchased raw material. B1: Direct labor. B2: Setup labor. B3: Machine run. C1: Machine variable overhead. Dx: Outside operation routing rollup. Xx: Extra add-ons, such as electricity and water. This cost structure enables you to use an unlimited number of cost components to calculate alternative cost rollups. The system then associates these cost components with one of six user-defined summary cost buckets.
Obj Acct (object account)	Enter an object account number. The AAI table is the only place where the object account portion of the general ledger account number is defined. Note. If you use a flexible chart of accounts and the object account is set to six digits, you should use all six digits. For example, entering 000456 is not the same as entering 456 because if you enter 456, the system enters three blank spaces to fill a six-digit object.
Sub (subsidiary)	Enter a code that indicates a subsidiary account, which is a subset of an object account. Subsidiary accounts include detailed records of the accounting activity for an object account. Note. If you are using a flexible chart of accounts and the object account is set to six digits, you must use all six digits. For example, entering 000456 is not the same as entering 456 because, if you enter 456, the system enters three blank spaces to fill a six-digit object. If you leave this field blank, the system uses the value that you entered on the work order in the Cost Code field.