To define costing parameters and accounts:

1. Navigate to the Organization Parameters window.

2. Select the Costing Information tabbed region.

   Note: Note this tab applies only to discrete organizations.

   The costing organization that controls the costs in your current organization and the costing method are displayed. You cannot make changes to these fields.

   See: Cost Structure, Standard Costing, and Average Costing.

3. When the Costing Method is Average, you can enter the Average Rates Cost Type. See: Defining Cost Types.

4. Indicate whether all transactions are posted in detail to the general ledger.

   Caution: Transferring detail transaction distributions to the general ledger increases general ledger posting times due to the number of records created.

5. Indicate whether to reverse encumbrance entry upon receipt in inventory.

   You normally select this option if you use encumbrances with Oracle Purchasing. See: Overview of Receipt Accounting.

6. Indicate whether subinventories can be associated with a given project and task.

   If the Project Cost Collection Enabled check box is selected, and the Enable Project References check box, located in the Project Manufacturing Parameters, is also selected, the cost collector process can transfer costs to project accounting.

   See, Project Manufacturing Parameters and Project Manufacturing Costing for more information.

7. Indicate whether to defer logical transactions.

8. Optionally, enter a Cost Cutoff Date.

   If you leave this field blank, all available transactions will be costed, as usual. If you enter a date, all transactions prior to this date will be costed. All transactions on or later than this date will not be costed. For inter-organization transfers, a standard costing, receiving organization will not cost a receipt if the sending organization did not already cost the transaction.

   The default time is the first instant of the date. You can optionally choose another time.

   The standard cost update process can be performed on the cost cutoff date. You can restart cost processing by changing the cutoff date to blank, or a future date.

9. For standard costing, select a material sub-element that this organization uses as a default when you define item costs. For average costing, the default material sub-element you select can be used for cost collection when Project Cost Collection Enabled is set.

   Attention: Since a material sub-element is organization specific you must define the organization first, then the sub-element, then the organization parameters. When you first define your parameters you can leave this field blank, save your work, then return to this field later to specify a default material sub-element.

10. Optionally, select a Default Material Overhead Sub-Element from the list of values. During the Supply Chain Rollup process, when costs are merged from another organization, markup and shipping costs will use this value.

    The supply chain cost rollup will complete successfully, regardless of whether this field is populated. If the Cost Rollup identifies an organization with a default material overhead sub-element not set up, a corresponding warning message will be printed in the log file.

11. Indicate the default cost group for the organization. This will default into the Default Cost Group field for each subinventory. If the WMS cost group rules engine fails to find a cost group, this cost group will be used. See: Overview of the WMS Rules Engine. This feature is available if you have Oracle Warehouse Management installed, and you are working with a WMS enabled organization. See: Defining Default Inventory Parameters.

12. Define default Valuation Account details. See: Valuation Accounts and Defining Subinventories.

   To continue defining organization parameters:

1. Select the Revision, Lot, Serial, LPN tabbed region. See: Defining Revision, Lot, Serial, LPN Parameters.