Defining a cost center for inventory account based on additional parameters

This page allows you to define a cost center to an expense or a consumption account with additional parameters. Tell me more.

Select the “Specify Additional Parameters” link from the “Maintain Inventory Cost Center Rule Definition” page.

The “Maintain Inventory Cost Center Rule Definition” page appears.

The system displays the following:

Company Code	The code identifying the company over which the business unit has been defined.
Event	The event or the business process based on which the cost center mapping is done.
Finance Book	The code identifying the finance book that has been mapped to the company – business unit combination.
Account Code	The code identifying the expense or the consumption account.

Enter the following fields:

Item Type	Use the drop-down list box to select the type of item based on which the inventory cost center is defined. You can select from “Raw Material”, “Component”, “Intermediate”, “Finished Product”, “Spare Part”, “Tool”, “Consumable”, “Utility”, “Capital”, “Service”, “Model”, “Kit”, “Pack”, “Scrap”, “Sundry” or “All”. The system displays “All” by default on launch of the page.
Item Group	The code identifying the item group that has been defined for the purpose of inventory costing (Alphanumeric, 25). The value entered here should have been defined in the “Item Group” business component.
	Press the <Enter> key.
	The system retrieves and displays the item group description in the “Item Group Desc” field.
	Help facility available

Note: If this field is left blank then all the item groups (defined for the company mapped to the business unit) are included in the sale cost center definition.

The system displays the following:

Item Group Desc.	A brief description of the item group.
	Zoom facility available

Enter the following fields in the “Cost Center Definition Details” multiline:

Usage ID.	The code identifying the usage of the cost center (Alphanumeric, 20). The usage entered here must have been defined in this business component and applicable for inventory.
	Help facility available
Receipt At	Use the drop-down list box to select the organization unit in which the goods receipts are raised for the supplier from whom materials were purchased. All the organization units mapped to the business unit to which the login organization unit belongs will be available for selection, along with “All”. The system displays “All” by default on launch of the page.
Doc. Type	Use the drop-down list box to select the type of document based on which the inventory cost center is defined. You can select from “Material Request/Inventory Issue”, “Unplanned Return-MR Based” or “Blank”.

Note: If the event has been selected as “Material Request/Inventory Issue” in the “Event” field, then “Material Request/Inventory Issue” will be displayed and defaulted for selection in this field.

If the event has been selected as “Unplanned Return-MR Based” in the “Event” field, then “Unplanned Return-MR Based” will be displayed and defaulted for selection in this field.

If the event that has been selected in the “Event” field is other than “Unplanned Return-MR Based” and “Material Request/Inventory Issue”, then “Blank” will be displayed and defaulted for selection in this field.

Item Code	The code identifying the item (Alphanumeric, 32). The value entered here should have been entered in the “Item Administration” business component.
	Press the <Enter> key.
	The system retrieves and displays item description in the “Item Desc.” field.
	Help facility available

Note: If this field is left blank all the items (defined for the company mapped to the business unit) are included in the purchase cost center definition..

This field should be left blank if the item type selected in the “Item Type” field is “All”.

Supplier Code	The code identifying the supplier based on which the cost center is derived (Alphanumeric, 16). The value entered here must have been defined in the “Supplier” business component.
	Press the <Enter> key.
	The system retrieves and displays the supplier name in the “Supplier Name” field.
	Help facility available

Note: Value should be entered in this field only if the event has been specified as “Unplanned Receipt Supplier” or “Unplanned Issue Supplier”.

Stock Status

Use the drop-down list box to select the stock status based on which the inventory cost center is defined. You can select from “Consignment”, “Others” “Blank” or “All”.

Note: The values “Consignment”, “Others” and “All” will be available for selection when the event selected is not “Std Cost Revaluation”. The system displays “All” by default on launch of the page.

Only “Blank” will be loaded and defaulted if the event selected is “Std Cost Revaluation”.

Requester	The code identifying the employee who had placed a request to stock the items specified (Alphanumeric, 20). The value entered here should have been defined in the “Employee” business component.
	Help facility available

Note: Value should be entered in this field only if the event has been specified as “Unplanned Return-MR Based” or “Material Request/Inventory Issue”.

Numbering Series	Use the drop-down list box to select the numbering series based on which the inventory cost center is defined.
	All the numbering series for the event “Unplanned Receipt Supplier” will be available for selection in ascending order along with “All”, if the event selected in the “Event” field is “Unplanned Receipt Supplier”.
	All the numbering series for the event “Unplanned Issue Supplier” will be available for selection in ascending order along with “All”, if the event selected in the “Event” field is “Unplanned Issue Supplier”.
	All the numbering series for the event “Unplanned” will be available for selection in ascending order along with “All”, if the event selected in the “Event” field is “Unplanned”.
	All the numbering series for the event “Material Request/Inventory Issue” will be available for selection in ascending order along with “All”, if the event selected in the “Event” field is “Material Request/Inventory Issue”.
	All the numbering series for the event “Unplanned Return – MR Based” will be available for selection in ascending order along with “All”, if the event selected in the “Event” field is “Unplanned Return – MR Based”.
	All the numbering series for the event “Adjustment” will be available for selection in ascending order along with “All”, if the event selected in the “Event” field is “Adjustment”.
	All the numbering series for the event “Std Cost Revaluation” will be available for selection in ascending order along with “All”, if the event selected in the “Event” field is “Std Cost Revaluation”.
	The system displays “All” by default on launch of the page.
Cost Center	The code identifying the cost center that has to be mapped to the company code + finance book + expense or the consumption account combination (Alphanumeric, 10). Mandatory. The code entered here should have been mapped to the login organization unit and must have been defined in the “Cost Setup” business component mapped to the business unit of the login organization unit.
	Press the <Enter> key.
	The system retrieves and displays the cost center description in the “Cost Center Desc.” field.
	Help facility available
Effective From	The date from which the inventory cost center definition for the company code + finance book + expense or consumption account combination is valid (Date Format). Mandatory.

Note: The date entered in this field should be greater than or equal to the “Effective From Date” and should be less than or equal to the “Expiry Date” of the expense or the consumption account, that has been defined in the “Accounting Setup” business component.

Also, the date entered in this field should also be greater than or equal to the “Effective From Date” and should be less than or equal to the “Expiry Date” of the cost center, that has been defined in the “Cost Setup” business component.

The date entered here is also checked against the “Effective From Date” and the “Expiry Date” of the cost element that has been mapped to the account code and the company code.

The system displays the following:

Valid Upto Date

The date till which the account definition is valid

Note: For the same company code + finance book + expense or consumption account combination, if two different cost center mapping is done, then the system updates the “Valid Upto Date” of the first definition to one day less than the new definition’s “Effective From Date”.

Item Desc.	A description of the item.
Supplier Name	The name of the supplier.
Cost Center Desc.	A description of the cost center.

Click the “Save Details” pushbutton to save the inventory cost center.

The system saves the inventory cost center definition and updates the login ID of the currently logged in user and the system date along with the inventory cost center details.

To proceed, carry out the following

Select the “Define Usage” link from the bottom of the page to define a usage for the inventory cost center definition.

Select the “View Inventory Definition” link from the bottom of the page to view the inventory cost center information.

Defining a cost center for inventory account based on additional parameters – An overview

These parameters are specified for the company code + finance book + event + expense or consumption account combination. You can specify the additional parameters involved in cost center mapping like the:

Item type
Item Code
Item Group
Cost center usage
Document type
Supplier
Receipt At
Requestor
Stock status
Numbering series

Except item group, item, requester, supplier and usage, other parameters are loaded in a select box with individual values and also “All”.

For a company code, finance book, event and account combination, if “All” has been selected for the parameters: item type, receipt type and numbering series are selected for a particular cost center rule definition then, for the same company code, finance book, event and account code combination, another definition with individual values of the above parameters cannot be defined.

The parameter document type can be involved in the definition, only if the event has been selected as “Material Request/Inventory Issue” or “Unplanned Return”. Similarly, if the parameter supplier can be involved in the definition, only if the event has been selected as “Unplanned Receipt Supplier” or “Unplanned Issue Supplier”. The parameter requestor can be involved in the definition, only if the event has been selected as “Material Request/Inventory Issue” or “Unplanned Return”. Also, the parameter stock status can be involved in the definition, only if the event has not been selected as “Std Cost Revaluation”.

The usage that has been defined for the cost center in this business component can also be used as a user configurable parameter for cost center definition.

The system saves the inventory cost center with all the additional parameters. The system also updates the login ID of the currently logged in user and the system date along with the purchase cost center definition.

Prerequisites

Mandatory

“Cost Center” must have been defined in the “Cost Setup” business component.
“Item Code” must have been defined in the “Item Administration” business component.
“Item Group” applicable for inventory costing must have been defined in the “Item Group Administration” business component.
“Supplier” must have been defined in the “Supplier” business component.
“Requestor” must have been defined in the “Employee” business component.
“Numbering Series” applicable for the respective events must have been defined in the “Numbering Class” business component.

What you can do in this page

Define inventory cost center with additional parameters

You can define an inventory cost center by specifying additional parameters.

Specify the additional parameters and the cost center to be mapped.

Click the “Save” pushbutton to define an inventory cost center with additional parameters.