Cost Accounting Periods

Cost accounting periods enable you to monitor the timing of transaction processing, and to perform validations in preparation for period close.

Cost periods are associated with combinations of cost organizations and cost books. When you associate a cost organization with a cost book, you also define the cost accounting period calendar and other attributes.

Cost Period Calendar and Attributes

The cost period calendar is based on the ledger that's attached to the cost organization and cost book combination. For cost books that don't have an associated ledger, you can set the calendar and cost periods manually on the Manage Cost Organization Relationships page, Cost Books tab. On this page, you also define these cost period attributes:

• First opened period. Establishes the period when transaction accounting begins. Any transactions that precede the first opened period, are accounted in the first opened period.

• Maximum open periods. Specifies the maximum number of concurrent periods that can be open. If the number of periods is maximized, then no additional period can be opened until one of the open periods changes to Closed, Permanently Closed, or Pending Close status.

Prevent General Ledger Period Close if Cost Accounting Subledger Period is Open

You can set up General Ledger to prevent closing general ledger periods if the corresponding subledger periods in Cost Management are open. A warning message is displayed when you try to open a costing period that isn't open or is closed and the corresponding general ledger period is closed. You can efficiently sequence your period end close so that the Cost Management subledger journal entries are transferred to General Ledger before the general ledger period can be closed.