Cost objects

This article provides information about costs objects, and explains how costs and quantities are accumulated. A cost object is an entity that costs and quantities are accumulated for. A cost object entity can be either a product or product variants, such as variants for style and color.

Cost objects

The Cost objects page lists all cost objects that are registered on a product. The cost objects are defined by data from the following sources:

• Product
• Product dimension group
• Storage dimension group
• Tracking dimension group

Note: A cost object represents a cost element of the Direct material type only. A cost object and an inventory object differ in the way that a cost object is defined by the inventory dimensions that are selected for financial inventory. For example, an item has the following configuration:

• Site: Physical inventory = Yes, Financial inventory = Yes
• Warehouse: Physical inventory = Yes, Financial inventory = No
• Batch No.: Physical inventory = Yes, Financial inventory = No

The following table shows what is a cost object and what is an inventory object.

Object type	Item number	Site	Warehouse	Batch No.
Cost object	x	x
Inventory object	x	x	x	x

Accumulation of costs and quantities

• The value in the Value fieldis a sum of the following values:
  • Physical cost amount
  • Financial cost amount
  • Adjustments
• The value in the Quantity field is a sum of the following values:
  • Received
  • Deducted
  • Posted quantity
• The Average unit cost field is a calculated field. The value is calculated by dividing the Value value by the Quantity value.

Note: The **Include physical value **parameter has no effect on the preceding calculations.

Additional resources

Product dimension group

Storage dimension group

Tracking dimension group

What's new or changed

Cost entries