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How to Define Cost Type In Oracle Inventory

Cost type is required while we define any new organization.

Some cost types which are already defined are Average and Frozen.
Steps to Define.
Choose inventory responsibility and navigate to form.
Setup -> Costs -> Cost Types
On Cost Type Window

Default cost type is basically used for items where any specific type is not defined.
Date to inactivate cost is used to inactive your cost at specific date except for average and frozen cost type because frozen and average cost cannot by inactivate.
If multi org is checked then this type is available for all organization but not its costs.
If unchecked then this type is only available for organization which created it.
If allow update is checked then this cost type can be updated by available average cost update processes.

If for this type you want component yield effect in rollup then check this box.

Once Cost Type is defined let’s Move forward to Defining and configuring Inventory Organization

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