Setting Up Item Costs and Prices

The Billing Basis is either Cost Plus or Price List. The Billing Basis affects your item setup procedures. If you want the flexibility of using both billing basis types for an item, you need to set up both costs and prices for that item. An item is an Activity, Material, or Resource.

Setting up Costs for the Cost Plus Billing Basis
The cost plus method utilizes costs associated with an item. The item should have a cost defined for it. First, ensure that the appropriate item attributes are set up correctly for the item.

To set up an item’s attributes

1. Navigate to the Master Item window.
2. Optionally, select the Costing Enabled check box to report, value, and account for any item costs. Select this check box if you are using the cost plus billing method.
3. Optionally, select the Inventory Asset Value check box. Select this check box if you are using the cost plus billing method.
4. Save your work.

To set up costs for an item

1. Navigate to the Item Costs Summary window.
2. Choose Costs.
3. Enter cost information for your item.
4. Save your work.

Setting up Prices for the Price List Billing Basis

The Price List method uses a specified price list. The specified item should have at least one entry in the price list. First, ensure that the appropriate item attributes are set up correctly for the item.
To set up an item’s attributes
1. Navigate to the Master Item window.
2. Optionally, select the Customer Ordered check box in order to create a price within the price list. Select this check box if you are using the price list billing method.
3. Save your work.

To set up prices for an item

1. Navigate to the Price Lists (Advanced Pricing) window.
2. Enter price information for your item.
The same item may repeat multiple times in the price list, with varying values for Start Date, End Date, and Precedence. For example, it is invalid to have overlapping date ranges, if the Precedence is the same.
3. Save your work.

Oracle Applications Fusion Cloud - Inventory

Oracle Cloud/Fusion Procurement training will help you develop the fundamental skills required to set up and use the Procurement module. This training covers all the tasks, setups, forms and reports used in Procurement and related modules