Understanding Average and Actual Costing

PeopleSoft Cost Management provides flexibility when establishing and adjusting costs for makeable or purchased items. This topic discusses features of PeopleSoft Cost Management that are related to the use of actual, and average costing methods that are used in either a manufacturing or distribution environment.

Actual costs for a production ID or production schedule are computed as part of the Transaction Costing process (within the Cost Accounting Creation process). Actual costs can be viewed by using the inquiry pages that are in this topic. Changes to the actual or average costing can be accomplished by using the adjustment pages that are in this topic.

Production IDs that are closed for accounting can be reopened for changes; the actual cost calculations of the Transaction Costing process handles these changes.