Create a Valuation Structure

You can define the level at which items costs must be calculated in the application by creating valuation structures and setting them on the cost profiles.

1. In the Setup and Maintenance work area, click the Manage Valuation Structures task in the Cost Accounting functional area.

2. Click Create in the Actions menu to create a valuation structure.

3. In the Create Valuation Structure dialog, select the Valuation Structure Set.

   Because valuation structures are defined at the set level, they have the advantages of set-level definitions for sharing and segregation.

4. Select the Valuation Structure Type.

   The applicable types are Asset, Expense, and Consigned.

5. Enter a code and an optional description for the valuation structure.

6. Select the Valuation Structure Mode.

   The mode determines whether the valuation units are created manually, or automatically by the cost processor, or both. The applicable values are:

   • Auto - Use this option for valuation structures that tend to be unlimited and unknowable in advance, such as lot IDs and serial IDs. The cost processor automatically creates a new valuation unit code as transactions for new lot IDs or serial IDs are processed. For consigned valuation structures, the mode can only be Auto.

   • Manual - Use this option for valuation structures that tend to have a finite list of possibilities, such as subinventories. When you use this option, the transactions that don't meet one of the expected possibilities will trigger an error condition.

   • Both auto and manual - Use this option for cases where you can either define the anticipated valuation units before they enter the processor, or you can let the processor automatically create the valuation units if you haven't already created them manually.

7. Select the appropriate Flexfield Structure.

8. Click Save and Close.