Set Up Cost Accounting

To set up Cost Accounting and Cost and Profit Planning, you must complete the setup tasks displayed in the Setup and Maintenance work area.

1. In the Setup and Maintenance work area, perform the tasks from the Cost Accounting functional area:

   • Offering: Manufacturing and Supply Chain Materials Management

   • Functional Area: Cost Accounting

2. Perform the tasks in the same sequence that the list displays them.

   The following table describes the setup tasks to implement Cost Accounting, and states whether each task is required or optional.

   Setup Task	Required or Optional	Description
   Manage Costing Key Flexfields	Required	Define the costing key flexfield segments and validation for use as costing classification keys. The costing key flexfield must be defined for costing to operate correctly.
   Manage Costing Lookups	Optional	Define lookup codes for extensible lookup types.
   Manage Costing Descriptive Flexfields	Optional	Define validation and display properties of descriptive flexfields for costing. Descriptive flexfields are used to add attributes to entities.
   Manage Cost Organizations	Required	Create and edit cost organizations. Cost accounting setup data policies and user security policies for cost management are established in these organizations.
   Manage Cost Books	Required	Create and edit cost books that are used for inventory transaction accounting.
   Manage Cost Organization Relationships	Required	Associate inventory organizations to cost organizations and assign cost books to cost organizations.
   Define Cost Accounting Policies	Required	Specify cost elements, configure mapping between cost components and cost elements, and specify cost profiles and valuation unit structures.
   Define Cost Accounting Book Policies	Required	Configure default cost profiles, item cost profiles, and valuation units for items.
   Manage Cost Organization Data Access for Users	Required	Manage cost organization data access for user provisioned roles.
   Manage Overhead Expense Pools	Optional	Create and edit definitions of expense pools for overhead rules that are used in overhead absorption.

Set Up Cost Accounting Using Quick Setup

Quick Setup guides you through the setup process, and provides default setup values for some tasks according to recommended practices. The setup process automatically performs the following setup tasks:

• Manage cost organizations

• Manage cost book

• Manage cost organization relationships

• Manage cost element

• Manage cost component

• Manage cost component mappings

• Manage valuation structures

• Manage cost profiles

• Manage default cost profiles

To set up Cost Accounting using Quick Setup, complete the following steps.

1. From the Navigator menu, select Setup and Maintenance.

2. On the Setup and Maintenance page, select the Manufacturing and Supply Chain Materials Management offering, and then click Setup.

3. Click the Quick Setup icon next to Cost Accounting, and follow the on screen instructions.

   For more information about using Quick Setup, see Quick Start Guide for Manufacturing and Supply Chain Materials Management.