Subject: Perform Cost Update

Doc ID: 199733.1 Type: HOWTO

Modified Date : 31-OCT-2008 Status: PUBLISHED

PURPOSE
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To aid the users of Oracle Applications.

Checked for relevance on 01-SEP-2008

SCOPE & APPLICATION

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All users of Oracle Applications.

Perform Cost Update

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The cost update copies all costs from the Pending cost
type to the Frozen cost type. Cost adjustments and
revaluations are performed automatically. Updates the existing
standard costs with the costs created in the pending cost type and
creates the resulting adjustment accounting entries.

If you use Work in Process, the cost update revalues discrete job
balances, creates accounting adjustments, and prints the
adjustments along with the new job values in its report.

To update standard costs:

Responsibility = Oracle Costing

Nav=>Item Costs, Standard Costs, Update Costs

1) Select the pending cost type.

2) Select an Adjustment Account.

This account is used to collect the changes in value to each
item, and to automatically generate transactions that adjust
your inventory accounts. Your inventory is adjusted by
subinventory and elemental cost account. Your discrete work in
process is adjusted by job and cost element account. The WIP
accounting class defines the adjustment account for your
discrete jobs.

3) (Optional)Enter a Description.

4) Select an Item Range option. The options are as follows:

All items: This is the default.

Based on rollup items: Items that have Based on Rollup turned

on in the Frozen cost type.

Category: All items in a selected category.

 Not based on rollup items: Items that have Based on Rollup
turned off in the Frozen cost type.

Range of items: Range of items you specify.

Specific item: Specific item you specify.

Zero cost items: Items with zero cost in the Frozen cost type.

5) Select a Sort Option for the adjustment report. The options

are as follows:

Item: By item

Category, Item: By category, then by item within the category

Subinventory, Item: By subinventory, then by item within the

subinventory (Default)

6) If you selected All Items for Item Range, select an update

option: either Overhead, resource, activity, and item costs, or
Resource,overhead, and item costs.

Overhead, resource, activity, and item costs:

Resource, overhead, and item costs: This is only available if

you use Inventory with Bills of Material. If you use Work
in Process, choose this option to reflect resource and
overhead cost changes for actual charges to standard and
nonstandard asset jobs.

Activity and item Costs:

Item costs only: This is the default.

7) If you selected Specific item for the Item Range, select the
Specific Item to be updated.

8) If you selected Category for the Item Range, do one of the

following:

Select a Category Set. The default is the category set

defined for the costing functional area.

Select a specific category.

9) If you selected Range of items in the Item Range field, select

beginning and ending Item From and To values. Standard costs are
updated for all items in this range, inclusive.

10) Indicate whether to save details. Selecting Yes saves a snapshot of

the inventory and work in process on hand quantities cost
update details. If you select Yes, you can rerun the adjustment
reports as long as you choose to maintain the details.
You can purge standard cost history to delete these details.

RELATED DOCUMENTS
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Oracle Cost User's Guide, part number A7508