Cost Accounting is the Cost Accountants’ tool to calculate inventory transaction costs, maintain inventory valuation, generate accounting distributions for inventory and WIP transactions, analyze product costs, analyze usage of working capital for inventory and analyze gross margins. Cost Accounting empowers you with flexible cost setup features, including multiple cost elements, resources, overheads, and activities. Cost planning also provides involves robust planning, costing and analysis of manufacturing costs.
Oracle Cloud supports three costing methods- Standard Costing, Average (Perpetual) Costing and Actual (FIFO) Costing. Currently, LIFO is not supported. Cost Accounting is enabled by Valuation Structure and Valuation Unit, which define the granularity at which the cost of an item is maintained. This empowers businesses to maintain cost at the desired level such as at lot level or serial number level or at an item level.
About the Author
Ashutosh Sahu With almost 6 years of experience in Oracle VCP and Cloud applications, Ashutosh is a qualified MBA in Industrial and Supply Chain Management. His focus areas are advisory and solutions consulting for range of Supply Chain organizations.