Overview of Cost Accounting

The Manage Cost Accounting business process is used by cost accountants to calculate inventory transaction costs, maintain inventory valuation, generate accounting distributions for inventory transactions, analyze product costs, analyze usage of working capital for inventory, and analyze gross margins.

The following image lists the Cost Accounting tasks.

• Manage Period End. Manage the timing of transaction processing, and perform validations in preparation for accounting period close.

• Manage Inventory Valuation. Adjust the cost of items to address inventory obsolescence, price changes, and other variances.

• Record, Audit, and Review Cost Accounting. Create cost accounting distributions for transaction data that's received from external sources, view and address any processing exceptions, and review results.

• Analyze Product Costs: View the perpetual average cost, actual cost, and standard cost details of an item, chart its cost trend, compare costs across items, analyze usage of working capital and gross margins.

Default Cost Organization Context

When you open the Cost Accounting landing page, the default cost organization is automatically derived based on the value set for the ORA_CST_DEFAULT_COST_ORG profile option. If you prefer to work on a different cost organization, you can select another value on the landing page before navigating to other pages.

If you've enabled the Redwood user experience, the cost organization selected on the Cost Accounting landing page is carried forward to the Cost Accounting and Cost Planning pages opened through quick actions. Where applicable, the application also derives related values such as business unit, ledger, primary cost book, and period from the selected cost organization. This table lists the supported Cost Accounting and Cost Planning pages and the default behavior.

Area	Supported Pages	Default Behavior
Cost Accounting	Cost Accounting Periods Inventory Valuation Cost Adjustments Work Order Costs Batch Costs Maintenance Work Order Costs Gross Margin Analysis Standard Purchase Cost Variance Summary Review and Approve Item Cost Profiles Cost Processing Run Control Accounting Overhead Rules Cost Accounting Transactions and Distributions Item Costs	The cost organization selected on the Cost Accounting landing page is used as the default working context. Where applicable, the application also derives related values such as business unit, ledger, primary cost book, and period.
Cost Accounting	Periodic Average Cost Adjustments	If the selected cost organization is enabled for Periodic Average Cost, it's applied as the default cost organization. Otherwise, the first available cost organization in alphabetical order is set as the default cost organization.
Cost Planning	Cost Scenarios Resource Rates Overhead Rates Rolled Up Costs Scenario Exceptions Compare Standard Costs Standard Cost Import Exceptions	The cost organization selected on the Cost Accounting landing page is applied as the default filter context.

Note:

• The default cost organization context only applies when navigation begins on the Cost Accounting landing page.

• If you change filters within a page, your selections are respected for that page. When you navigate to another supported page, the landing page cost organization is applied again as the default working context.