Create a Cost Scenario for Supply Chain Cost Rollup

You can define cost scenario to perform standard cost rollup of all manufactured products across multiple organizations, whether you use discrete manufacturing, process manufacturing, or mixed mode manufacturing. This is available only if you have opted in to this feature.

If you’re using a periodic average cost enabled cost book, then you can define only one cost scenario for a cost organization, cost book, and period combination.

1. In the Cost Accounting work area, click the Manage Cost Scenarios task.

2. Click on the Add icon.

3. On the Create Cost Scenario page, enter a name for the cost scenario.

4. Select Enable Supply Chain Cost Rollup.

   The supply chain cost rollup can be used only for regular items. The Scenario Type will default to Regular items when this option is selected.

5. Set the organization context to specify whether the cost rollup would be for a cost organization and cost book combination or for a group of cost organization and cost book combinations.

6. If you've set the Organization Context as Group then select the Cost Rollup Group else select the appropriate Cost Organization and Cost Book.

   You can't select a periodic average cost book.

7. Select the Effective Date for the cost scenario.

8. Select the Assignment Set Name and Transfer Charge Rule Set.

   Assignment Set Name is mandatory for the scenario. You need to run the Extract Supply Sources process for the assignment set before running the Roll up Costs process.

   Transfer Charge Rule Set is optional. You can use this configuration when you want to apply transfer charges to material costs when materials get transferred across organizations. To apply a transfer charge rule, the cost scenario effective date should be between the effective start date and effective end date of the transfer charge rule.

9. Select the cost rollup scope to identify the items for cost rollup.

   If you set the rollup scope as Selected Items or Selected Item Categories, then click the Add icon to search and select the required items from the Select and Add: Items dialog or the Select and Add: Item Categories dialog respectively.

10. Define the criteria to select the work definitions for the cost rollup by using these parameters.

    Field	Description
    Use Latest Work Definitions	Select this check box to ensure that the Roll Up Costs process checks for the latest work definition changes from Manufacturing. If not selected, the process uses the work definitions used to calculate the cost of make items in the prior published scenarios, instead of using the latest work definitions that are active on the scenario effective date.
    Work Definition Priority	The priority determines which work definition must be used to calculate the costs when multiple work definitions exist for a make assembly. Define the priority for selecting the work definition by using any combination of these options: Top production priority Top costing priority Work definition name When you select multiple options, you can reorder them using the up and down arrow buttons.
    Work Definition	If you selected Work definition name for the Work Definition Priority parameter, select the work definition that the Roll up Costs process must use.

11. Click Save and Close.

After you create a cost scenario, you can define the material, resource, and overhead rates in the cost scenario. Then, you can manually run the processes such as Roll up Costs and Update Standard Costs from the cost scenario.

If you want to make changes to the published costs, you can run the Undo Cost Update process after you have published the costs. The costs can be unpublished and changed only if they haven't been used for costing transactions.