Use Periodic Cost Calculation (3.5.7.1) to calculate the actual cost of an item for a specific period, based on recorded data-inventory transactions, BOMs, routings, purchase prices, and labor/burden expenses over a certain period. The system considers the beginning balance of the item while calculating period costing. It then generates GL transactions, which are summarized based on the cost calculations.

The system can consider all expenses regarding the production effort, including scrap that is common to the process and downtime that is predicted in the routings.

The system performs periodic costing calculations in base currency as well as statutory currency when either currency is in use.

You can run the periodic cost calculation multiple times within the current period until the periodic cost is closed. The system posts GL transactions from the transient layer to the GL management or official layer for the current period.

The system defaults the cost set template, year, and start and end dates; you cannot change these values.

When Use Supplier Invoice is set to Yes in Periodic Costing Control, the system links to a corresponding invoice, if applicable. If there is no corresponding invoice, the field is marked as zero and a warning is displayed.