1. Implementing Manufacturing and Supply Chain Materials Management
  2. Create a Cost Book

Create a Cost Book

A cost book sets the framework within which accounting policies for items can be defined. A cost organization must have one primary cost book that's associated with the primary ledger of the legal entity to which the cost organization belongs.

  1. In the Setup and Maintenance work area, go to the Manage Cost Books task:

    • Offering: Manufacturing and Supply Chain Materials Management

    • Functional area: Cost Accounting

    • Task: Manage Cost Books

  2. Click Add Row.
  3. Enter a name for the cost book.
  4. Optionally, you can enter a description and additional information, and also include attachments.
  5. Select Periodic Average Cost to enable the cost book for periodic average cost method.

    If enabled, for this cost book, all items will be costed using the periodic average cost.

    Note: If you enable Periodic Average Cost, then you can’t disable it after the cost book is associated with a cost organization using the Manage Cost Organization Relationships task.
  6. Click Save.