IPAC is set up in the same way as standard PAC. The only additional step is to enable IPAC when defining the legal entity cost type associations.

   To enable or disable IPAC:

1. Navigate to the Org Cost Group / Cost Type Associations window.

2. Select the Cost Type Associations tab.

3. Select the Enable Iterative Periodic Average Costing check box to use IPAC.

4. You can also select the Perform Multiple Iterations check box. This attribute determines whether multiple iterations should be performed until the tolerance is achieved when inter-organization transfers across cost groups are processed. If this is not checked, then only one iteration is performed.

   Note: You can leave this unchecked to improve the performance if you do not follow stringent standards to comply with the tolerance.

5. Save your work.