From Setup to Insights: Using Item
Attributes Effectively in Oracle Fusion Costing
Item attributes play a critical role
in controlling how an item behaves in transactions and how it is treated in
cost accounting.
When defining or updating items in Oracle Fusion, specific Costing
attributes determine whether transactions are costed, valued, and reported.
Key Costing
Attributes and Their Possible Values
1. Costing Enabled
- This is an item-defining attribute that
determines whether transactions for this item are processed in cost
accounting.
- Impact: If not enabled, transactions are ignored by costing processes.
2. Inventory Asset
Value
- Indicates whether to treat the item as an
asset in inventory or expense it immediately.
- Impact: Controls whether the cost is capitalized as inventory or
recognized as an expense.
Possible Setup Combinations
Case 1: Costing
Enabled = No and Inventory Asset Value = No
Transactions will be
skipped in cost accounting and there shall not be any cost or valuation
calculated for the items.
In this case, the data would not be
interfaced to Costing.
·
Transactions
are skipped in cost accounting.
·
No cost or
valuation is calculated for these items.
·
Data is not
interfaced to the Costing module at all.
·
The
transactions remain with Pending Interface to Costing status in Review
Completed Transactions UI
Case 2: Costing
Enabled = Yes and Inventory Asset Value = Yes
Transactions will be
processed in cost accounting and there shall be cost / inventory valuation
calculated for the items with asset profile.
·
Transactions
are processed in cost accounting.
·
Cost and inventory
valuation are calculated for these items with an asset profile.
·
For
reporting: Run the Period Inventory Valuation Report with Valuation
Type = Asset to retrieve item information.
Case 3 – Costing Enabled = Yes and
Inventory Asset Value = No
Transactions will be
processed in cost accounting and there shall be cost / inventory valuation
calculated for the items with expense profile.
In this case, the data
would still be transferred to Costing and would be reflecting under Expense
valuation unit.
·
Transactions
are processed in cost accounting.
·
Cost and
valuation are calculated for these items with an expense profile.
·
Data is
still transferred to Costing but appears under the Expense Valuation Unit.
·
For
reporting: Run the Period Inventory Valuation Report with Valuation
Type = Expense to retrieve item information.
The below table makes it easy to quickly
see how attribute combinations drive costing behavior and where they can
find the relevant reports.
|
Costing
Enabled |
Inventory
Asset Value |
Data Sent to
Costing? |
Transaction
Processing in Cost Accounting |
Cost /
Valuation Calculated? |
Reporting
in Period Inventory Valuation Report |
|
No |
Yes |
This combination is not possible |
|||
|
No |
No |
No |
Skipped
entirely |
No |
Not
applicable |
|
Yes |
Yes |
Yes |
Processed as Asset |
Yes – Asset Valuation |
Valuation Type = Asset |
|
Yes |
No |
Yes |
Processed as
Expense |
Yes –
Expense Valuation |
Valuation
Type = Expense |
The asset cost
profile is used for the item in below scenarios-
a)
Costing
enabled is Yes and Inventory Asset Value is set to Yes.
b)
Costing
enabled is Yes, Inventory Asset Value is set to Yes, and the receiving
subinventory is of type Asset.
The expense
cost profile is used for the item in below scenarios-
c)
Costing
enabled is Yes and Inventory Asset Value is set to No
d)
Costing
enabled is Yes, Inventory Asset Value is set to Yes, and the receiving
subinventory is of type Expense.
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