This chapter covers the following topics:
The costing method is defined at the Inventory Organization level. Oracle Cost Management supports four costing methods - Standard Costing, Average Costing, FIFO Costing, and LIFO Costing. Service applications support these methods for material items. For labor and expense items only Standard cost can be applied.
Navigate to Inventory, Setup: Organizations, Organizations, Inventory Organization, Inventory Information, to set up the costing method.
For details on setting up costing methods, refer to Costing Methods in Oracle Cost Management User's Guide.
Navigate to Inventory, Items: Master Items, and then click the Costing tab.
Select the Costing Enabled check box.
Select the Inventory Asset Value check box.
Navigate to Inventory, Items: Master Items, and then click the Service tab.
Select the Enable Service Billing check box, and choose Material as the billing type, to enable charges for material items.
To setup labor items:
Navigate to Inventory, Items: Master Items, and then click the Costing tab.
Select the Costing Enabled and Inventory Asset Value check boxes.
Navigate to Inventory, Items: Master Items, and then click the Service tab.
Select the Enable Service Billing check box and choose Labor as the billing type, to enable charges for labor items.
To setup expense items:
Navigate to Inventory, Items: Master Items, Costing tab.
Select the Costing Enabled and Inventory Asset Value check boxes.
Navigate to Inventory, Items: Master Items, and then click the Service tab.
Select the Enable Service Billing check box and choose Expense as the billing type, to enable charges for expense items.
For more details on inventory item attributes, refer to Item Attributes chapter in the Oracle Inventory User's Guide.
Under the Inventory, Vision Operations responsibility, navigate to Items, then Master Items. From the Tools menu, select Item Costs.
In the Cost Element field, enter Material, Resource or Overhead, for material, labor, or expense items, respectively. As these cost elements are predefined in the Costing application, you cannot define additional elements.
For more details on how to define cost items, refer to Item Costing chapter in the Oracle Cost Management User's Guide.
Service Activity Codes (SACs) determine if cost and charge records are created or not.
Using the Service responsibility, navigate to Setup: Charges, and select Service Activities and Billing Types.
Select the Create Charge check box to enable creation of charge records.
Select the Create Cost check box to generate cost records for the transactions.
Install Oracle XML Publisher to implement the XML Publisher report. Associate the XML Publisher Administrator responsibility to the user.
The Service: Default Inventory Item for Labor Transactions profile option is used to default the inventory item and create cost records for labor transactions that are created with no inventory item on the Debrief UI. This value is used when Create Cost in the SAC is set to Yes and Create Charge is set to No.
To set up the profile option, you need to select a value from the LOV. It displays all the Inventory Items that have the billing type as labor, and that are assigned to the Inventory Organization defined in the Service: Inventory Validation Organization profile option.