Understanding Cost Object Matching

Cost object matching is a type of assignment. Like other assignments, cost object matching is a method by which the system reallocates indirect revenue and costs. For cost object matching, you can choose from the following types of calculations when you create an assignment:

• Variable numerator

• Rate calculation

• Rate based

When you create an assignment using cost object matching, the system performs calculations only if the from and based-on items for a particular cost object are the same. The items are ledger type, object account, subsidiary, and so on.

For example, you want to be able to spread the costs for activities from accounts in two different business units. To do this, you would match business units when you create an assignment using cost object matching.