What costing category is used in Cost Accounting?

Cost Accounting derives the costing category from the catalog that's mapped to the Cost functional area. Here's how Cost Accounting uses the costing category:

• To identify the cost profile in the Default Cost Profile page if you want to have different cost profiles mapped to different categories.

• In the Analyze Product Gross Margin page, when you review the gross margin by item, the catalog to which an item belongs is shown.

• Costing Category is available as a source to drive your accounting in SLA.

Cost Accounting uses the costing category mapped to the item validation organization. An item can be associated with multiple inventory organizations that are mapped to a single cost organization and, therefore, could return different categories. To avoid the ambiguity, the costing category mapped to the item validation organization is used.