Defining Cost Factors

You can set up the cost factors using the Cost Factors window.

Note: Refer to the Cost Factors Setup in Oracle Purchasing User's Guide for details.

To define cost factors:

1. Navigate to the Cost Factors page. The Cost Factors page appears displaying all of the cost factors.
2. Click Create. The Create Cost Factor page appears.
3. Enter the code for the cost factor in the Code field. This code will appear in the Charge Type list of values in the Shipments Workbench.
4. Select Active for the Status.
5. Enter a name for the cost factor in the Cost Factor Name field.
6. Select the basis for pricing using the Pricing Basis field. Per-Unit appears by default for the pricing basis.
7. Enter the description for the cost factor in the Description field.
8. In the Cost Management region,
   
   1. Select the Allocation Basis for the cost factor. Options are: Quantity, Value, Volume, and Weight.
   2. Select the Cost Component Class and Cost Analysis Code.
   3. Select the Acquisition Cost Indicator as Expense to not apply the cost factor in cost calculations or Inventory to apply the cost factor in cost calculations.
9. Click Apply.