Define Cost Source Indicators

Explanation

To be able to follow up on situations when costs could occur, you will have to connect cost types to suitable cost source indicators.

The system contains a fixed number of situations when costs could occur, represented by Cost Types. If for example the company wanted to follow up on labor costs, you might need to consider Shop Order - Labor as a cost type for your company. You must decide which cost source indicators are to be used in different situations. This is done by connecting cost types to cost source indicators through this activity. In the above example, you might consider connecting cost type Shop Order - Labor to the cost source indicator Labor Class.

Note: The next step is to connect the cost source indicators to cost sources (this is done through the activity Define Cost Sources for Cost Source Indicators). Cost sources represent origins of different costs, and cost source indicators are the parameters that control cost sources.

Prerequisites

• The company must have been entered in the system.
• If you want to have a fixed cost source for a cost type and cost source indicator combination, you must have entered that cost source in the Cost Details Basic Data/Cost Source tab.

System Effects

The definition of a cost source indicator in relation to a cost type is set. This will decide the parameters that control cost sources, after you connect cost source indicators to cost sources via activity Define Cost Sources for Cost Source Indicators.

Note: If the inventory valuation method is standard cost (and the cost level is per part), cost source information will not be taken into consideration or displayed in cost detail lines.

Window

Cost Details Basic Data

Related Window Descriptions

Cost Details Basic Data, Cost Details Basic Data/Cost Source Indicator Definition

Procedure

1. Open the Cost Details Basic Data window. Query for your company.
2. Click on the Cost Source Indicator Definition tab.
3. The different cost types that are available will be displayed in the Cost Type field. From the adjacent Cost Source Indicator list box, select a suitable cost source indicator to connect to the cost type.
4. Optionally you can select any cost source as a fixed cost source from the list of values in the Fixed Cost Source field.
5. Repeat till all of the required combinations of cost type and cost source indicator are defined.
6. Save your records.