Defining Cost Objects

Use the Cost Objects page to set up cost objects.

When adding cost objects using the Cost Objects search page, if you select Integrate Cost Object, you must have already set up the object to which the cost object refers in the Operational Warehouse - Enriched (OWE). For example, if you set up a cost object called PENCIL, it must already exist in the Product table (PRODUCT_D00); otherwise, it does not display in the Cost Object ID list.

Pages Used to Set Up Cost Objects

Page Name	Definition Name	Navigation	Usage
Cost Objects	CST_TBL1	select Activity Based Management, then select Setup, then select Cost Objects, then select Cost Objects	Set up cost objects for your model.
Cost Object Description Long	CST_TBL2S	Click the Information button on the Cost Objects page.	Enter a long description of the cost object.

Cost Objects Page

Use the Cost Objects page (CST_TBL1) to set up cost objects for your model.

Navigation

select Activity Based Management, then select Setup, then select Cost Objects, then select Cost Objects

Enter a SetID, Cost Object Group, Dimension, and Cost Object ID. (If Integrate Cost Object is selected, this cost object must be set up in the OWE).

Image: Cost Objects page

This example illustrates the fields and controls on the Cost Objects page. You can find definitions for the fields and controls later on this page.

Description

Enter a description of the cost object.

(Optional) Click the Information button to enter a long description of the cost object.

Cost Object Use

Select the cost object use. Values are:

Primary: Select to have the cost object be the final customer, product, or channel (or other object). This represents the object for which you want to derive cost or revenue information.

Secondary: Select to have the cost object be used when you are costing components of a final customer, product, or channel. For example, if a product consists of two separate components, you may want to treat each as a secondary cost object. To obtain the cost of the total product, assign each secondary cost object to a primary cost object that represents the combined product. Selecting this value makes the Sustaining and Target check boxes unavailable for entry.

Multi-dimensional

Select to specify that the cost is a combination of two or more dimensions—a customer, a product, or a channel—such as a transaction.

Single Dimensional

Select to specify that the cost object exists in a single dimension—customer, product, or channel.

Note: If you are adding a new single-dimensional cost object using the Cost Objects search page, select the Cost Object Group and Dimension – customer, product/service, channel, or department.

Sustaining

Select if the Primary cost object supports the overall business, cannot reasonably be attributed to one or more dimensions, or does not generate revenue.

Target

Select if this Primary cost object is a target