To define costing parameters and accounts:
1.
Navigate to the Organization Parameters window.
2.
Select the Costing Information tabbed region.
The
costing organization that controls the costs in your current organization and
the costing method are displayed. These fields are enterable only when you use
this window for the first time during system setup. The costing organization
can be the current organization itself (thus, it controls its own costs), or it
can be the Item Master organization.
See:
Cost Structure, Standard Costing, and Average Costing.
3.
When the Costing Method is Average, you can enter the Average Rates Cost Type.
See: Defining Cost Types.
4.
Indicate whether all transactions are posted in detail to the general ledger.
Caution:
Transferring detail transaction distributions to the general ledger increases
general ledger posting times due to the number of records created.
5.
Indicate whether to reverse encumbrance entry upon receipt in inventory.
You
normally select this option if you use encumbrances with Oracle Purchasing.
See: Overview of Receipt Accounting.
6.
For standard costing, select a material sub-element that this organization uses
as a default when you define item costs. For average costing, the default
material sub-element you select can be used for cost collection when Project
Cost Collection Enabled is set.
Attention:
Since a material sub-element is organization specific you must define the organization
first, then the sub-element, then the organization parameters. When you first
define your parameters you can leave this field blank, save your work, then
return to this field later to specify a default material sub-element.
7.
Define default Valuation Account details. See: Valuation Accounts and Defining
Subinventories.
To continue defining organization
parameters:
Select
the Revision, Lot, Serial tabbed region. See: Defining Revision, Lot, Serial
Parameters.
