How to: Set Up Cost Objects
Cost objects are projects, products, or services of a company. The chart of cost objects is similar to the dimension information for the general ledger. You can set up the chart of cost objects in the following ways:
Transfer dimension values in the general ledger to the chart of cost objects. You can make any necessary adjustments after the transfer.
Create a new chart of cost object that is independent of the general ledger or add a new cost object to an existing chart of cost objects. You must create each cost object individually.
To transfer dimension values from the general ledger to the chart of cost objects
Set a dimension to be the cost object dimension in the Update Cost Acctg. Dimensions window. Only the values from this dimension are transferred.
In the Search box, enter Chart of Cost Objects, and then choose the related link.
On the Actions tab, in the Functions group, choose Get Cost Objects from Dimension to transfer dimension values to the chart of cost objects. The function transfers the dimension values that you defined in step 1.
Note
You can set up the Align Cost Object Dimension field to define a one-way synchronization of dimension values from the general ledger to the chart of cost objects. You cannot define a synchronization of the chart of cost objects to dimension values from the general ledger.
The chart of cost objects now contains all specified dimension values from the general ledger and includes titles and subtotals.
To create new cost objects in the Chart of Cost Objects window
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Note
You can set up and maintain cost objects in either the Cost Object Card card or in the Chart of Cost Objects window. In this procedure, you set up cost objects in the Chart of Cost Objects window.
Open the Chart of Cost Objects window in edit mode.
In the Code field, enter the cost object code. All cost objects must have a code.
In the Name field, enter the cost object name.
Choose the drop-down arrow in the Line Type field to specify the purpose of the cost object.
For cost objects of the Total line type, fill in the Totaling field. Use the or operator, which is a vertical line (|), to set ranges of cost objects.
For cost objects of the End-Total line type, this field is filled in automatically when you use the indent function.
Fill in the Sorting Order field.
Chose the next empty line to create a new cost object, and then repeat steps 2 through 5.
After you have set up all the cost objects, on the Home tab, in the Process group, choose Indent Cost Objects. Choose the Yes button.
Important
If you have entered definitions in the Totaling fields for End-Total cost objects before you run the indent function, then you must enter them again. The function overwrites the values in all End-Total fields.
See Also
Concepts
Defining Cost Centers and Cost Objects for Chart of Accounts
Balances Between Cost Type, Cost Center, and Cost Object
Set Up Cost Accounting
Terminology in Cost Accounting
About Cost Accounting
Other Resources
Chart of Cost Objects
Cost Object Card
Update Cost Acctg. Dimensions
Align Cost Object Dimension