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Implementing Manufacturing and Materials Management: From Empty Plant to Costed Work Order · Module 15 · Cost Accounting Structures

Cost organization design

Lesson 150 of 188 · 2 min

What a cost organization boundary gives you: separate costing rules, separate cost books, separate cost processing and close, and a security boundary. What it costs you: a separate close every period, separate cost setup to maintain, and separate rate maintenance. Same shape as the inventory organization decision, and the same monthly tax at the end of it. One cost organization can cost several inventory organizations. That is the normal case — a group of plants under one costing policy. When you need more than one: different legal entities, usually mandatory; genuinely different costing policies; different currencies; or a requirement to separate cost visibility between business units. When you do not: different plants under one policy in one legal entity — one cost organization, several inventory organizations. Start with one cost organization per legal entity. Split only for a stated reason. And one last link. The cost organization is found through

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In this module: Module 15 · Cost Accounting Structures

  1. 1What we are building
  2. 2The warning nobody readsFree preview
  3. 3The costing object model
  4. 4Choosing a cost method
  5. 5Cost organization design
  6. 6Running the costing design workshop
  7. 7Cost organizations and cost books
  8. 8Cost organization relationships
  9. 9Cost elements and components
  10. 10Cost component mappings
  11. 11Valuation structures and units
  12. 12Cost profiles
  13. 13Expense pools and accounting
  14. 14Quick setup for cost accounting
  15. 15What breaks
  16. 16Lab briefing: the Halden costing design
  17. 17Lab solution walkthrough