Create an Opening Cost Override

You can define a new cost for the opening inventory balance for a period by creating an opening cost override. For example, the prior period cost was defaulted to 0 due to negative inventory and you don’t want to use this cost.

You can define only one opening cost override for a cost organization, cost book, item, valuation unit, and period combination.

1. In the Cost Accounting work area, click Manage Periodic Average Cost Adjustment on the tasks menu.
2. On the Periodic Average Cost Adjustments page, click Create Opening Cost Override.
3. Select the cost organization, cost book, item, and valuation unit.
4. Select the period.
   You can define an adjustment only for the current open period of the cost book.
5. Select a reason code.
6. You can optionally associate an adjustment account, if the cost book is a primary cost book.
7. Click Add to include cost details for the adjustment.
8. Select the cost element and enter the adjustment value.
   Repeat step 7 and 8 for each cost element that you want to add to the adjustment.
9. Click Submit.

After you create an opening cost override, you can update it only if the corresponding period is in the Open or Pending close status and the adjustment isn’t processed by the cost processor. You can update the reason code and account. You can modify the new unit cost for the cost elements, add new cost elements, and delete existing cost elements.