Redwood: Create and Edit Cost Profiles Using a New User Experience

A cost profile defines the cost accounting policies for items, which includes the cost method and valuation rules. Before an item can be costed, it must be associated with a cost profile. The cost processor refers to the attributes defined in a cost profile to calculate costs and create accounting distributions for inventory and trade transactions.

You can now create, update, search, and delete cost profiles using Redwood pages.

The Cost Profiles page displays all the cost profiles that you have access to, sorted by last updated date in the descending order, by default. You can search for the cost profiles and filter the results based on your requirements. The available filters are:

• Cost Profile Set
• Valuation Structure Type
• Cost By
• Cost Component Mapping Group (on selection of cost profile set)
• Valuation Structure Code (on selection of valuation structure type)

You can modify and delete existing cost profiles. Using the navigation links at the bottom of the page, you can quickly access other related setup pages.

Cost Profiles Page

You can now rearrange and hide the available columns based on your preferences and requirements.

Rearrange and Hide Cost Profile Columns

Create New Cost Profile

Click the Add (+) button to create a cost profile. The basic details like valuation structure, cost method, and cost profile set have default values that streamline the cost profile creation process. Options like negative quantity processing are auto-selected based on the cost method. After entering basic details, you can add additional specifications on the next screen, where most fields have a default value. You can easily navigate between sections to create and adjust transaction costing and work order valuation rules as needed.

New Cost Profile Basic Details

New Cost Profile Additional Details

Some of the benefits of this feature include:

• Intelligent defaulting of recommended cost policies based on the cost method and valuation structure granularity chosen.
• Better organization of the costing policies for more focused and easier management.
• A central place for defining all your item costing and accounting rules.

Steps to Enable

You don't need to do anything to enable this feature.

Tips And Considerations

• In the Setup and Maintenance work area, the Redwood version of the Cost Profiles page is enabled by default in this update, but the existing version of the Manage Cost Profiles page is still available in the Manufacturing and Supply Chain Materials Management offering. You should move to the Redwood version of the page at your earliest convenience, because the existing version of the page will be removed from the application in a future update.
• You can provide guidance such as tutorials, company policies, and best practices in the context of cost profiles using guided journey tasks. 
• When you create a cost profile, some of the attributes are set by default based on the cost method selected and can’t be changed. You can create another cost profile with a different cost method.
• When a cost profile is set as the default or assigned to an item cost profile, some of the attributes, such as Valuation Structure Code, Cost Component Mapping, and Cost By, are locked and can't be modified because these are key implementation decisions.
• The Process Negative Quantity option is applicable for cost processing issue transactions for a valuation unit and it's independent from the Allow Negative Inventory option in Inventory.
• Using the summarize cost transactions for lot and serial controlled items will help in limiting the volume of cost distributions getting generated on cost processing.
• Enabling the Enforce Processing of Costs by Transaction Date option helps in calculating and using a more accurate perpetual average cost, but will result in queuing of pending transactions, if any of the transactions in the order is stuck or can't be processed because of an error.
• Leverage the cost profile set to easily share the costing policies across multiple entities with similar structures to enable uniform cost comparison.
• The valuation structure type defines the cost profile as an Asset Cost Profile, Expense Cost Profile, or Consigned Cost Profile for an item.
• By default, the Account Intravaluation Unit Pick Transfers option is disabled indicating that these transactions will be ignored for cost processing and inventory valuation accounting. Enable the option only if your business requires the tracking of on-hand quantity at staging subinventory and inventory accounting has been configured at the same level.
• Default sort order for the page is all cost profiles sorted by last updated date in descending order.

Key Resources

• Oracle Fusion Cloud SCM: Implementing Manufacturing and Supply Chain Materials Management Guide, available on the Oracle Help Center.
• Oracle Fusion Cloud SCM: Using Cost Management Guide, available on the Oracle Help Center.

Access Requirements

Users who are assigned a configured job role that contains the following privilege can access this feature:

• Manage Cost Profile (CST_MANAGE_COST_PROFILE)
• Manage Cost Profile by Web Service (CST_MANAGE_COST_PROFILE_WEB_SERVICE)