Before You Begin Calculations

Before using periodic costing calculations, ensure that you have followed all set-up instructions as described in this user guide.

Before you start calculating the periodic costs for a specific GL period, run Periodic Costing Initialize (30.5.1.23) to initialize cost calculation data. This must only be done once, after installing and setting up periodic costing; however, you can re-initialize, if necessary. For example, if your company wants to start periodic costing from June, you can enter 05/31 as the initialize date, and as long as you have not closed June, you can re-initialize. Once a close is done on a periodic costing subledger, you cannot re-initialize.

The system calculates and stores initial data for the first periodic cost calculation and links the cost set to the currency and period. The system automatically finds the last period for the last GL period, obtains the current GL period, and identifies all periods that you set up for the calculation in PC Cost Calc. Period Maintenance.

To initialize periodic costing using Periodic Cost Initialize, enter the effective date for periodic costing calculations; then, enter a reference cost set that the item unit costs must be copied from for initial cost valuation. You can enter either a current cost set, a standard cost set, or a simulation cost set. You should have defined the cost for every item on the cost set you enter.

Example: You enter Standard for the cost set. For Item A in standard cost, the material portion is 1 and overhead is .5. In Periodic Costing Initialize, you enter a date of 05/31/2010. The system creates a new cost set for the period May 2010. If you enter the periodic costing template PCTEMPL for the cost set, the cost set for May 2010 would be PCTEMPLUSD1005001, and the cost for Item A for cost set PCTEMPLUSD1005001 is 1 for material and .5 for overhead.

Once you enter the cost set, press Go. The date you enter should be the as-of date of a GL calendar period.