Understanding Average and Actual Costing
PeopleSoft Cost Management provides flexibility when establishing and adjusting costs for makeable or purchased items. This topic discusses features of PeopleSoft Cost Management that are related to the use of actual, and average costing methods that are used in either a manufacturing or distribution environment.
Actual costs for a production ID or production schedule are computed as part of the Transaction Costing process (within the Cost Accounting Creation process). Actual costs can be viewed by using the inquiry pages that are in this topic. Changes to the actual or average costing can be accomplished by using the adjustment pages that are in this topic.
Production IDs that are closed for accounting can be reopened for changes; the actual cost calculations of the Transaction Costing process handles these changes.
Field or Control |
Description |
|---|---|
Book Name |
The name of the cost book. Books identify the type of accounting records that are to be maintained, such as tax, managerial, or financial books. A book contains a set of accounting entries that are posted to the general ledger. |
Cost Element |
A code that is used to categorize the different components of an item's cost and also to define the debit and credit ChartFields for accounting entries. |
Lower Level Costs |
Costs that are associated with the components that are used on the assembly. |
Reason Code |
Categorizes why the adjustment occurred and can be used later for analysis. The reason type limits the selection to the appropriate reason codes for adjustments. |
Source Code |
Identifies an item as make, buy, floor stock, expense, or planning. This determines how the item is used for the Cost Rollup process and Update Production process (CEREVAL, SFPREVAL, CES5001). |
Std UOM (standard unit of measure) |
The standard unit of measure for this item established on the Item Definition - General: Common page. |
This Level Costs |
Costs that are associated with procuring distribution items. |