Cost Sets and Methods
Cost data is collected and calculated using cost sets and costing methods. A cost set is a collection of related cost data. A costing method defines how cost data in a cost set is calculated and maintained.
This chapter discusses the cost sets and methods that are used to calculate costs.
Cost SetsIntroduces the concept of cost sets.
Costing Methods
Summarizes costing methods and their usage.
Using Costing Methods with Cost SetsDescribes the costing methods to use with particular cost sets.
Cost Set CategoriesDescribes the categories of costs tracked for each cost set.
Cost Sets
There are two default cost sets for each site: general ledger (GL) and current.
• GL cost distinguishes costs used to value inventory and determine cost-of-goods sold from other costs such as current costs or planning costs.
• Current cost is normally based on recent production and/or purchases. Current costs are the actual costs from inventory receipts and work order labor transactions.
The system supports GL and current costs by item and site. Only one GL and one current cost set can be active for each site.
Standard costing provides one GL and one current cost set for each site. GL cost sets and current cost sets must have the same name at all sites. For example, if the name for the GL cost set is Standard, it must be Standard for all of the sites. Use Item Cost Set Name Change (1.4.14) to change the name of a cost set as needed.
The Cost Management module lets you create and maintain additional GL and current cost sets for each site beyond the default sets. You can also use different names for current and GL cost sets at each site. See
Cost Management.
You can use Cost Management functions to create an unlimited number of cost sets for:
• Maintaining different GL and current cost sets for each site
• Cost planning
• Cost simulations
• Historical cost comparisons
Cost Management also has inquiries that display which sites use a particular cost set and the GL and current cost sets in effect at each site.