Purchase Price Variances Tracking by Cost Object and Component

JD Edwards EnterpriseOne Advanced Cost Accounting uses data from Oracle's JD Edwards EnterpriseOne Procurement system to track purchase price variances by cost object and component.

The item master record contains the unit cost of each component that you purchase to use in the manufacturing process. You can use the unit cost of components from an item master record to determine the purchase price of cost objects. After you determine the purchase prices of cost objects, you can follow fluctuations in those prices over time. You can analyze the cost objects to locate the components that contribute to the variance, and thereby make more informed purchasing decisions.