Can we change the Costing method from Standard to Average after Go ... https://community.oracle.com/customerconnect/discussion/comment/7...

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Can we change the Costing method from Standard

to Average after Go Live.
Received Response 36 Views 5 Comments

Anil Vadde Red Ribbon

Oct 14, 2022 12:49AM 5 comments

Summary:

Hello Team,

we are using the standard costing method and we would now like to change it to Average costing. Its been
5 years now that we have been performing the transactions.

Is it possible now to change the costing method.

Can we have one costing method of standard to PO receipts and diCerent one for WIP transactions.

Can you please clarify.

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Can we change the Costing method from Standard to Average after Go ... https://community.oracle.com/customerconnect/discussion/comment/7...

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Tagged: Cost Management

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Answers

Srini Raghavan-Oracle Silver Trophy

Oct 14, 2022 8:59AM

Hi Anil,

Currently, we do not have an out of the box capability to change cost method for existing
items. Please drop me a note (srini.raghavan@oracle.com) so that we can discuss this further.

You can have diCerent cost methods for diCerent items in the same cost org, but cannot have
diCerent cost methods for same item by transaction type. I would like to understand this a liPle
bePer to see if there are other costing capability that they can leverage. Let's discuss this in
more detail in a meeting.

Srini

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2 of 6 18/11/22, 08:18
Can we change the Costing method from Standard to Average after Go ... https://community.oracle.com/customerconnect/discussion/comment/7...

P V Sathish Kumar Green Ribbon

Nov 8, 2022 11:20PM

Hi Srini,

I am also having the similar requirement. Customer wants to migration from Average to
Standard Costing Method.

For testing purposes, is it possible to create new cost book and have a default cost proTle
created with Standard Costing method for the combination of cost org and new cost book for
the existing items.

I believe, in such cases, we should not do the accounting for the secondary ledger which is
being mapped to the new cost book.

Kindly also let me know if we can directly create the entries in the secondary ledger without
passing the entries via the primary ledger.

Regards,

Sathish

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Srini Raghavan-Oracle Silver Trophy

Nov 8, 2022 11:28PM

Hi Sathish,

"For testing purposes, is it possible to create new cost book and have a default cost proTle
created with Standard Costing method for the combination of cost org and new cost book for
the existing items."

<Srini> Yes, you can create a new cost book and use standard cost method for all items and
cost the same set of transactions with standard cost method. Ensure that the new book has the
same start date as the existing Primary book.

3 of 6 18/11/22, 08:18
Can we change the Costing method from Standard to Average after Go ... https://community.oracle.com/customerconnect/discussion/comment/7...

"I believe, in such cases, we should not do the accounting for the secondary ledger which is
being mapped to the new cost book."

<Srini> You can mark this new book as a ledgerless cost book i.e. do not associate a ledger with
this book since the transactions have already been accounted with the average cost method.

"Kindly also let me know if we can directly create the entries in the secondary ledger without
passing the entries via the primary ledger."

<Srini> If the customer is ok with creating a new secondary ledger and is ok with accounting all
the transactions afresh with standard cost method in this ledger, you can map the new cost
book with a secondary ledger.

Hope this helps.

Srini

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P V Sathish Kumar Green Ribbon

Nov 8, 2022 11:36PM

Thanks for the response Srini.

About the accounting in the secondary ledger, it will duplicate the accounting the primary
ledger right.

Regards,

Sathish

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Srini Raghavan-Oracle Silver Trophy

Nov 9, 2022 12:18AM

4 of 6 18/11/22, 08:18
Can we change the Costing method from Standard to Average after Go ... https://community.oracle.com/customerconnect/discussion/comment/7...

Yes, the same set of transactions will be processed with standard cost and you'll see these
transactions in the newly created secondary ledger.

Srini

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