Define Cost Sources for Cost Source Indicators

Explanation

Use this activity to establish a connection between the cost source indicator and cost source. The cost source indicator is essential in determining the cost source of a cost detail line. In activity Enter Cost Sources, you would have entered cost sources for your company. You must now connect the cost sources to suitable cost source indicators, depending on your company's requirements for following up on costs. This will decide the system parameters which will define the cost source entered by you.

Note: Cost source indicators are also connected to cost types via activity Define Cost Source Indicators.

Prerequisites

• Cost source indicators must already have been defined. For example to be able to enter a product code in the Cost Details Basic Data/Cost Source Indicators/Product Code tab, you must have defined the product codes in the Inventory Basic Data window Product Codes tab. You can use the Zoom feature to identify where they should be defined.
• If your cost source indicator is site dependent, the sites must have been entered in the system.

System Effects

It is now possible to follow up on costs based on the origin. Provided the cost source indicator has been appropriately associated with the part, transactions will show the cost source in its cost details. For example, if you are using Product Code as a cost source indicator, your part must be connected to a product code in the Inventory Part window.

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

Window

Cost Details Basic Data

Related Window Descriptions

Cost Details Basic Data, Cost Details Basic Data/Cost Source Indicators

Procedure

1. Open the Cost Details Basic Data window. Query for your company.
2. Click on the Cost Source Indicator tab. You will be able to see many tabs. They represent all the cost source indicators available in the system.
3. Select a tab representing a cost source indicator you require.
4. Create a new record.
5. From the list of values, select a suitable cost source indicator.
6. From the Cost Source ID field, select a suitable cost source.
7. Enter a date in the Valid From field.

Note: Some indicators (eg: labor class and work center) are site dependent. They and could exist several times with the same ID, in different sites of a company. For such indicators select a site in the Site field.

8. Repeat steps 4-7 and enter all the cost source indicators that should be used. You can even enter the same cost source indicator several times, with different valid from dates.
9. Save your records.
10. Repeat steps 3-9 for all the cost source indicators that you want to use.