Generating Costs for Transaction Records

The Transaction Costing process picks up inventory transactions from the TRANSACTION_INV record and calculates the costs of each transaction, including, material, conversion, conversion overhead, landed, inbound, outbound, and other costs. The parameters for the Transaction Costing process are defined on the Cost Accounting Creation process page.

The Transaction Costing process:

  • Calculates the cost of receipts.

  • Calculates the cost of depletions. If chosen in setup, this could include costing negative inventory depletions before a corresponding receipt is available.

  • Calculates and updates the weighted average costs and actual costs of items having cost profiles that use actual, periodic average, or perpetual average cost methods.

    Note:

    For standard cost items, the system does not automatically set frozen standard costs when you use the Transaction Costing process. To update standard costs, you must use the Cost Rollup process (CEPCROLL) and Update Production Costs process (CEREVAL, SFPREVAL, CES5001).

  • Calculates purchase price variances and exchange rate variances.

  • Calculates landed costs.

  • Calculates the cost of make items produced in PeopleSoft Manufacturing.

  • (optional) Launches the Negative Inventory Resolver process to check for new receipts (putaway and adjustment transactions) and adjust the quantities and costs of previously recorded negative inventory depletion transactions.

Working With Non Cost Items

Transactions involving a non-cost item (that is, items with a cost profile defined as non-cost) are not placed in the costing records by the Transaction Costing process. For example, putaway transactions are not moved to the CM_RECEIPTS record. Use caution if you later decide to change a non-cost item to an actual, standard, or average cost profile. After transactions have been generated in the system, changing a non-cost item can result in discrepancies between the costing and inventory records. A warning message displays online if you change the non-cost cost profile for an item with inventory transactions on the Define Business Unit Item - General: Costing page. If you decide to change a non-cost item please make sure you have no on hand quantity in the inventory business unit by running the Inventory Balance report (INS9090) and the Cost Management On hand Balance Validation report (CMS9010). Any inventory balance created while the business unit item used a non-cost profile will no longer be available when changing to another cost profile. In addition, PeopleSoft Cost Management does not support interunit pricing for non-cost items.

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