To update pending costs to Frozen standard costs:Updating pending costs to Frozen standard costs does the following:
Updates the existing standard costs with the costs created in the new 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.
Creates item cost history.
Prints the Inventory, Intransit, and WIP Standard Cost Adjustment reports that detail the valuation changes in your inventory due to the change in the standard costs.
If you share costs across inventory organizations, the standard cost update automatically revalues the on-hand balances in all organizations that share costs.
Oracle recommends that you also print the Cost Type Comparison Reports to display differences in item costs for any two cost types. You can compare by cost element, activity, subelement, department, this/previous level, or operation.
Optionally, saves update details for rerunning adjustment reports
You can only update standard costs from the master costing organization, which must use standard costing.
The standard cost update is a batch process that can run while you perform normal transactions. Doing so delays accounting transactions until the cost update is complete. (Consider scheduling large-scale cost updates for off hours.) However, if the period close, job close, or general ledger transfer processes are running, the standard cost update is delayed until they are complete.
Because this function changes the frozen standard value of inventory, Oracle recommends that you take appropriate security precautions.
Attention: Cost Management does not update the standard costs of those items for which you do not define a cost. The standard cost is updated to zero only if you define a zero cost for the item.
To define, update, or delete cost information, the Privilege to Maintain Cost security function must be included as part of the responsibility. See: Cost Management Security Functions.
To update pending costs to Frozen standard costs:Navigate to the Update Standard Cost window.
In the Parameters window, select a Cost Type.
Cost information (a set of costs for items, activities, resources, outside processing, and overhead) is copied from this cost type into the Frozen cost type.
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 WIP is adjusted by job and cost element account. The WIP accounting class defines the adjustment account for your discrete jobs.
Optionally, enter a Description.
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.
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)
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 WIP, choose this option to reflect resource and overhead cost changes for actual charges to standard and non-standard asset jobs.
Activity and item Costs:
Item costs only: This is the default.
If you selected Specific item for the Item Range, select the Specific Item to be updated.
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.
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.
Indicate whether to save details. Selecting Yes saves a snapshot of the inventory and WIP on-hand quantities cost update details. If you select Yes, then 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.
Indicate whether or not to Delete Resource Overhead. Selecting 'Yes' deletes any associations through the resource and overhead list. In order for a resource overhead association to qualify for deletion, you must ensure that both the overhead and the resource have been selected.
Note: If you do not provide a specific range in the resource / overhead parameters, then all resource-overhead associations that are not present in the user defined cost type will be deleted from the frozen cost type.
