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:

1. From the Home page, click Navigator > Supply Chain Execution > , click Cost Accounting.

2. On the Cost Accounting tab, select the Tasks tab.

3. Click Manage Cost Scenarios in Cost and Profit Planning.

4. On the Manage Cost Scenarios page, click the Create icon in the Search Results region.

5. On the Create Cost Scenario page, enter or select values for the following fields:

   • Scenario

   • Cost Organization

   • Cost Book

   • Effective As-of Date

   • Scenario Type

6. Click Save and Close.

7. Click Done.

Creating Standard Costs

The steps to create standard costs are:

1. From the Home page, click Navigator > Supply Chain Execution > , click Cost Accounting.

2. On the Cost Accounting tab, select the Tasks tab.

3. Click Manage Standard Costs in Cost and Profit Planning.

4. On the Manage Standard Costs page, click the Create icon in the Search Results region.

5. On the Create Standard Cost page, select the following:

   • Cost scenario that you created earlier

   • Item

   • Valuation Unit

6. In the Standard Cost Details region, select the following:

   • Cost Element

   • Cost Element Type

   • Unit Cost

   • Expense Pool (if applicable)

7. Select Save and Close from the Save drop-down list.

8. Click Done.

Creating Resource Rates

The steps to create resource rates are:

1. From the Home page, click Navigator > Supply Chain Execution > , click Cost Accounting.

2. On the Cost Accounting tab, select the Tasks pane.

3. Click Manage Resource Rates in Cost and Profit Planning.

4. On the Manage Resource Rates page, click the Create icon in the Search Results region.

5. On the Create Resource Rate page, enter the following:

   • Scenario. Select the cost scenario that you had created earlier.

   • Plant

   • Resource

6. Select the Create or the Plus icon in the Details region.

7. Select the following:

   • Cost Element

   • Expense Pool

   • Rate

8. Select Save and Close from the Save drop-down list.

9. Click Done.

Rolling up Costs

You must roll up costs for the cost scenario that you had created earlier. The steps are:

1. From the Home page, click Navigator > Supply Chain Execution > , click Cost Accounting.

2. On the Cost Accounting tab, select the Tasks pane.

3. Click Manage Cost Scenarios.

4. Search for the cost scenario that you had created earlier.

5. On the View Cost Scenario page, select Roll up Costs from the Actions menu.

6. On the Roll up Costs dialog box, select the Notify me when this process ends check box.

7. Click Submit.

8. Click OK in the Confirmation dialog box that appears.

9. Click Done.

Run the Update Costs process from the Actions menu to publish all these costs to Cost Accounting.