Example: Calculating Transaction Costing Based on the Cost Profile

These examples illustrate how the costing structure operates. Transactions for PeopleSoft Inventory and PeopleSoft Manufacturing are inserted into the PeopleSoft Transaction History (TRANSACTION_INV) table. The Transaction Costing process within the Cost Accounting Creation process uses the transaction data along with the costing structure to determine the cost for each transaction.

These diagrams illustrate how the Transaction Costing process uses the cost profile setup (receipt cost, cost flow, and deplete cost methods) to calculate transactions cost for:

• Lot control items.

• FIFO and LIFO items.

• Average cost items.

• Standard cost items.