Step 1: Set Personal Profile Options

Cost Management personal profile options control defaults within windows as well as data processing options.

Step 2: Set Security Functions

Cost Management security functions determine what information can be viewed, created, updated, and deleted in certain windows in Cost Management.

See: Cost Management Security Functions.

Step 3: Define Cost Types

You must define cost types. Each cost type contains a unique set of costs and has its own set of cost controls.

• Default: Frozen for Standard Costing, Average and Average Rates for Average Costing

• Context: N/A

See: Defining Cost Types.

Step 4: Defining Activities and Activity Costs

You can define activities, activity rate information, and activity and activity cost type associations. You can assign an activity to any cost. If you use the activity basis type, you can directly assign the activity cost to the item. When you use the other basis types, the cost is based on the subelement, basis type, and entered rate or amount. The activity defaults from the subelement; and, if needed, you can override the default.

Default: N/A

Context: N/A

See: Defining Item Costs and Defining Activities and Activity Costs.

Step 5: Define Cost Groups

You can define cost groups and use them to group project related costs.

Default: The organization's default cost group.

Context: Additional cost groups are required to group project related costs.

See: Defining Project Cost Groups and Project Manufacturing Implementation Manual.

Step 6: Define Material Subelements

Material subelements classify material costs, such as plastic or metal. A material subelement has a default activity and a default basis type assigned to it.

Default: N/A

Context: N/A

See: Defining Material Subelements.

Step 7: Define Overheads

You can use material overhead and overhead cost subelements to add indirect costs to item costs on either a percentage basis or as a fixed amount.

Default: N/A

Context: N/A

See: Defining Overhead.

Step 8: Define Material Overhead Defaults

You can define and update default material overhead subelements and rates at the organization or category level. When you define items in Oracle Inventory, these defaults are automatically used. This speed data entry when defining items.

Default: N/A

Context: N/A

See: Defining Material Overhead Defaults.

Step 9: Associate Expenditure Types with Cost Elements

You must associate expenditure types with cost elements so that project transfers and the project related costs associated with miscellaneous transactions can be properly processed once they are transferred to Oracle Projects.

Default: N/A

Context: N/A

See: Associating Expenditure Types with Cost Elements.

Step 10: Define Category Accounts (Optional)

You can define category accounts. Category accounts are part of the product line accounting setup.

Default: N/A

Context: N/A

See: Product Line Accounting Setup and Defining Category Accounts.

Step 11: Associate WIP Accounting Classes with Categories (Optional)

You can associate WIP accounting classes with category accounts. Default WIP accounting classes are part of product line accounting setup.

Default: N/A

Context: N/A

See: Product Line Accounting Setup and Associating WIP Accounting Classes with Categories.