Understanding Cost Component Setup

You use cost components to account for the cost of items and entities that you use in the wine making process. You create a cost for each cost component. For example, costs might include item costs for test tubes, latex gloves, or filters. You create a cost component for each of these items to capture the cost of dry goods. Additionally, you might create a depreciation cost component to capture depreciation on vessels. You use cost components to track operational costs of the entities that you use for the blend process. These entities include:

• Vessels

• Staff

• Equipment

• Overhead

• Expenses

• Materials

• Dry goods

You can create any number of cost components. You add cost components to cost groups using a fixed cost, periodic cost, cost per unit, or rate over time.

The system stores cost components in the Cost Components (F31B20) table.