1. Administering Pricing
  2. Manage Cost Lists

Manage Cost Lists

Modify a predefined cost list or create your own to set up a variety of charges, such as item cost, sales commission, or labor cost.

  • Use a cost list to set up cost plus pricing.

  • Use a cost list to calculate part of the profit margin for a charge.

  • Separate charges to help you manage and optimize charges and profit margins for an item, and help improve your pricing strategy. For example, create a separate charge for the transport charge, installation charge, recurring service charge for maintenance, and a one-time administration fee for 50 desktop computers. Pricing adds each cost as a charge to the cost list.

  • Manage charges at different levels, such as individual items or all items.

  • Get item costs from Oracle Cost Management in real time.
  • Modify your business strategy in response to real time changes in cost. Protect margins and profitability.
  • Add more than one item to a cost list in a single action.
  • Do mass actions.

The integration between Oracle Pricing and Oracle Cost Management brings item costs directly into the Cost Lists page in real time. The integration:

  • Makes it easy for you to set up your cost plus pricing and accurately calculate your margins.
  • Supports margin pricing, and that can help you control profits.

Try It

  1. Go to Home > Order Management > Show More > Manage Cost Lists – New.
  2. Click Create Cost List, set your values, then click Create.
  3. Click Add Items, search for your item, then click Add.

If you have lots of items, you can:

  1. Filter the results according to item category or UOM.
  2. Select the item, then click Calculate Costs.
  3. Use the Calculate Costs dialog to specify how you want to cost the item.

Cost rules in Cost Management determine the item’s cost and the cost method, such as:

  • Standard
  • Actual
  • Perpetual Average
  • Periodic Average
You can get the item’s cost from Cost Management according to the inventory organization and a reference date. You can apply a markup or discount to the cost or use the original costs from Cost Management. Assume the cost for Item A is $100 from January 1 through March 31. The cost from April 1 through June 30 is $110:
Item Reference Date Cost from Cost Management Operation Value Calculated Cost
A 1/1 Markup Percent — — $100
A 4/1 Markup Amount — — $110
A 1/1 Discount Percent Markup Percent 10% $100 + 10% = $110
A 4/1 Discount Amount Markup Amount $15 $110 + $15 = $125

For details about how to set up cost rules in Cost Management, see Overview of Cost Accounting.

Note

  • You can also manually enter cost. Click Enter Costs Manually, then set your values.
  • You can type in your values, click and drag values, or copy and paste them from your own spreadsheet application, such as Microsoft Excel. Sort data on the cost list page, and Enter Costs Manually will display them in the same sequence.
  • Use the Items tab to display a list of all items that are on the cost list. Review or update cost details on each item.
  • Click All Items to set up cost across all items in the cost list. Note that you can do only manual updates and you can't calculate cost.
  • Click Additional Information to specify an access set and optionally enter descriptive flexfields. Then, you can Activate the cost list.

Error Reports

If a problem happens with calculating cost during a mass action, then Pricing creates an error report that you can download in a file. The file includes the total number of submitted records, successful submissions, failed records, and a message that you can use to troubleshoot. You might see errors like:

  • Can't calculate cost because the item isn't enabled for costing.
  • Encountered a problem when attempting to get cost from Cost Management.
  • Can't calculate the item's cost because the cost would have a negative value.
  • The end date can't be before the start date.

Set Up

  1. Go to Home > My Enterprise > Setup and Maintenance > Search > Manage Administrator Profile Values, then enable the Redwood Page for Cost List Enabled profile option.
  2. Go to Home Page > Product Management > Product Information Management Tasks > Manage Items. Search for and open your item for editing, click Specifications, then set the Costing Enabled attribute to Yes.
  3. Examine your pricing set ups. Modify them, as necessary:
  4. Use the Manage Price elements page to make sure you set up your cost elements. This feature includes a predefined Costs cost element. See Manage Pricing Elements.
  5. You must assign a primary catalog so you can search for categories. See Set Up Oracle Pricing.
  6. Manage your pricing charge definitions. See Manage Pricing Charge Definitions.

Guidelines

  • Pricing rounds the costs that it brings in from Cost Management. If you don't want to round, you must manually enter the costs.
  • You must specify an access set before you activate your cost list.
  • The Mass Action Limit for Pricing Administration in Online Mode administrator profile sets the maximum number of records that Pricing will process for each mass action request. The default value is 250 records.

More

Redwood: Manage Cost Lists.

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