Defining Costing Organization Associations

OPM maintains separate item costs for each inventory organization. However, you can have a situation in which multiple inventory organizations transact the item, but the item costs in all of those organizations are the same. In such cases, OPM lets you create a costing organization and share it with other inventory organizations.

OPM lets you associate a single costing organization with multiple inventory organizations through costing organization associations. Each association is assigned a date effectivity rage which dictates when the association is valid. OPM uses these associations to determine the organization to which actual cost calculations is updated.

You can establish organization associations for standard or actual costing. Organization associations are not mandatory. Costing organization costs are only effective for items in those inventory organization linked to it.

Note: The start and end dates should encompass a complete Costing Period for which the association needs to be effective. For example, if the Costing Period start on 01-Jan-2006 and ends on 31-Jan-2006, the association effective dates must be 01-Jan-2006 and 01-Feb-2006 to completely include the last day of costing period.

To define costing organization:

• Navigate to the Cost Organization Associations window:

OPM Financials: Setup --> Cost Organizations

• Enter a valid organization code that is the costing organization in Cost Organization. You define organizations on the Organization window. The organization description from the Organization window displays automatically. Required.
• The Legal Entity linked to the organization displays. You cannot edit this field.

Associated Organizations

• Enter the Inventory Organization that you are linking to this costing organization. You can link an inventory organization to one costing organization for a date range. Required.
• The organization description from the Organizations window displays automatically in Name. You cannot edit this field.
• The cost or inventory organization association is effective only during the date range that you enter. Indicate the opening date in the effectivity range in Start Date. Required
• The cost or inventory organization association is effective only during the date range that you enter. Indicate the closing date in the effectivity range in End Date. Required.