Cost Cutoff Date

Applies to 11i, R12

Cost Cutoff Date can be used for both standard as well as average costing organizations. If you enter a date in field, all transactions prior to that date will be costed. All transactions on or later than that date will not be costed. You can restart cost processing by changing the cutoff date to blank, or a future date. Prior to this functionality, organizations that wanted to cost their transactions on new updated cost from certain period, had to record all the transactions from that period & value them at new cost after update.

This is intended to keep “new period” transactions uncosted until you finish your cost updates for the org. It is controlled simply by the entry of one Cost Cutoff Date for the org. For Example, if the Cost Cutoff Date = 01-DEC-2005, transactions with G/L Date of:
01-DEC-2005 or later will not be costed. 30-NOV-2005 or earlier will be costed.

Cost Cutoff Date field is found under Organization Parameters > Costing information tab region. From database prospective, when the Cost cutoff date is deferring the cost of a transaction, the transaction has “A record on the MTL_MATERIAL_TRANSACTIONS table” it allows the transaction quantities to be recognized but Its COSTED_FLAG = ‘N’ this Indicates that the record has not yet been costed. As long as the flag = ‘N’, no accounting entries [“distributions”] will get generated.

Sumir Bedi, OUG Atlanta Tips and Techniques