Defining Fiscal Policies

The Fiscal Policy options define the Legal Entity-wide parameters that determine the cost type that will be used for inventory valuation, the default material and overhead cost components and analysis codes for actual cost processing, additional cost types used for costing simulations

Following are the procedures to establish fiscal policy options. The "Event Fiscal Policies” and “Assign Additional Ledger Valuation Methods” topics provide mote details on setting up additional details for a Legal Entity.

To define fiscal policies:

• Navigate to the Fiscal Policies window:

OPM Financials: Setup --> Fiscal Policies

• Enter the Legal Entity name for which you are defining fiscal policy options. Required.
• Enter the name of the default Ledger for this fiscal policy company.
• Displays the Base Currency code for this company.
• Enter the cost type to use for inventory valuation in Valuation Method.
• Indicate if the fiscal policy is based on costs from the previous cost period or the current period in Cost Basis.

Default Material Component

• Enter the default material component that identifies the cost component to be applied to the fiscal policy in Component Class. Required
• Enter the code that identifies the cost Analysis Code to be applied to the fiscal policy.

Default Overhead Component

• Enter the default overhead component that identifies the cost component to be applied to the fiscal policy in Component Class. Required
• Enter the default overhead Analysis Code that identifies the cost analysis code to be applied to the fiscal policy.

Fiscal Policies Actions Menu

• Event Fiscal Policy - The Event Fiscal Policy lets you customize certain features of the Subledger and Journal Update process.