You initialize Periodic Costing once after installing and setting up Periodic Costing; however, you can reinitialize, 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 reinitialize. Once a close is done on a Periodic Costing sub-ledger, you cannot reinitialize.

The system calculates and stores initial data for the first periodic cost calculation and links the cost set to the currency and the 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.

You must initialize Periodic Costing before you can run the Periodic Costing calculation for the first time. You initiate the inventory balance and quantity on hand as a beginning for the first periodic cost period for the cost calculation.