Define Costing Master Data and Rolling up Costs
This procedure shows the steps to define the standard cost for material and resources and then create a cost scenario to roll up the cost of a finished good.
If you're using Actual or Average Cost Methods, you need not set up standard costs for materials. In this case, define a scenario, set up resource costs, and perform a cost update.
Creating Cost Scenarios
Use a cost scenario to define the cost scope for cost organization and cost book combinations.
The steps to create cost scenarios are:
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From the Home page, click Navigator > Supply Chain Execution > , click Cost Accounting.
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On the Cost Accounting tab, select the Tasks tab.
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Click Manage Cost Scenarios in Cost and Profit Planning.
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On the Manage Cost Scenarios page, click the Create icon in the Search Results region.
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On the Create Cost Scenario page, enter or select values for the following fields:
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Scenario
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Cost Organization
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Cost Book
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Effective As-of Date
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Scenario Type
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Click Save and Close.
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Click Done.
Creating Standard Costs
The steps to create standard costs are:
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From the Home page, click Navigator > Supply Chain Execution > , click Cost Accounting.
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On the Cost Accounting tab, select the Tasks tab.
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Click Manage Standard Costs in Cost and Profit Planning.
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On the Manage Standard Costs page, click the Create icon in the Search Results region.
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On the Create Standard Cost page, select the following:
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Cost scenario that you created earlier
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Item
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Valuation Unit
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In the Standard Cost Details region, select the following:
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Cost Element
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Cost Element Type
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Unit Cost
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Expense Pool (if applicable)
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Select Save and Close from the Save drop-down list.
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Click Done.
Creating Resource Rates
The steps to create resource rates are:
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From the Home page, click Navigator > Supply Chain Execution > , click Cost Accounting.
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On the Cost Accounting tab, select the Tasks pane.
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Click Manage Resource Rates in Cost and Profit Planning.
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On the Manage Resource Rates page, click the Create icon in the Search Results region.
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On the Create Resource Rate page, enter the following:
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Scenario. Select the cost scenario that you had created earlier.
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Plant
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Resource
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Select the Create or the Plus icon in the Details region.
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Select the following:
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Cost Element
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Expense Pool
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Rate
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Select Save and Close from the Save drop-down list.
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Click Done.
Rolling up Costs
You must roll up costs for the cost scenario that you had created earlier. The steps are:
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From the Home page, click Navigator > Supply Chain Execution > , click Cost Accounting.
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On the Cost Accounting tab, select the Tasks pane.
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Click Manage Cost Scenarios.
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Search for the cost scenario that you had created earlier.
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On the View Cost Scenario page, select Roll up Costs from the Actions menu.
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On the Roll up Costs dialog box, select the Notify me when this process ends check box.
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Click Submit.
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Click OK in the Confirmation dialog box that appears.
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Click Done.
Run the Update Costs process from the Actions menu to publish all these costs to Cost Accounting.