How to: Set Up Cost Types

The chart of cost types is similar to the chart of accounts in the general ledger. You can set up the chart of cost types in the following ways:

Structure the chart of cost types similar to the income statement accounts in the general ledger chart of accounts. Then, you can transfer the general ledger chart of accounts to the chart of cost types. You can make any necessary adjustments after the transfer.
Create new chart of cost types or add new cost types to existing chart of cost types. You must create each new cost type individually.

To transfer the general ledger chart of accounts to the chart of cost types

Choose the icon, enter Chart of Cost Types, and then choose the related link.
Choose the Get Cost Types from Chart of Accounts action. In the dialog box, choose the Yes button to confirm the transfer. The function uses the chart of accounts to create a chart of cost types.

The chart of cost types now contain all income statement accounts in the general ledger and include headings and subtotals. You can change the chart of cost types, as necessary. For example, you can delete duplicate existing cost types.

Important

The Register Cost Types in Chart of Accounts function updates the relationship between the chart of accounts and the chart of cost types. The No. field is filled and verified to make sure that each general ledger account is related to only one cost type. The function runs automatically before transferring general ledger entries to cost accounting.

Open the Chart of Cost Types window in edit mode.
Fill in the fields as described as necessary. Choose a field to read a short description of the field or link to more information.

Note

You can set up and maintain cost types in either the Cost Type Card window or in the Chart of Cost Types window. In this procedure, you set up cost types in the Chart of Cost Types window.
After you have created all cost types, choose the Indent Cost Types action. In the dialog box, choose the Yes button.
Link the new cost type to the corresponding general ledger account.

Important

If you have entered definitions in the Totaling fields for the line type of End-Total before you run the Indent Cost Types function, then you must enter the definitions again because the function overwrites the values in all End-Total fields.

In the Cost Accounting Setup window, select if you want the chart of cost types to be automatically updated when the chart of accounts is changed.
In the Align G/L Account field, you can choose from the following options.

No Alignment - There is no corresponding change in the chart of cost types when you change the chart of accounts.
Automatic - A corresponding change is made in the chart of cost types when you change the chart of accounts.
Prompt - A message is displayed asking if you want to make a corresponding change in the chart of cost types when you change the chart of accounts.