Running Periodic Costing Before Period End
You can execute Periodic Cost Calculation (30.5.7.1) for the first open period of the Periodic Cost sub-ledger. This means that, as soon as the period that just ended is closed, you can begin running Periodic Costing calculation for the current period. It is a good practice to run PC during the period to validate that the transactions are entered correctly. By doing this activity during the period, there is less work load after the period has ended.
The analysis and reconciliation of the Periodic Costing calculation results are similar in nature compared to the activity after the period has ended. The intermediate reconciliation allows for validation of transactions, in particular in the following areas:
• Purchase order receipts and logistic charges
You can validate these transactions against accounts payable and legal documents to verify that receipts, charges, taxes, and so on, have been recorded correctly.
• Work order and repetitive transactions
You can validate that labor and component are recorded correctly and included in the closing of the work order.
• Inventory balances
Review the balances for any negative balances to identify situations where transactions have not been recorded in a timely fashion.