Nonmanufacturing and distribution environments involve maintaining standard costs for purchased items, which includes initially setting standard costs. These guidelines assume the use of a single costing version when initially setting standard costs. This costing version will contain standard costs for the current period. Pending cost records for all items will be entered in this costing version, and the status will be changed to active.

1. Define the costing version by using the Costing version setupform. Guidelines for this costing version include:

   • Assign a costing type of standard costs.

   • Assign a meaningful identifier for the costing version, such as 2008-STANDARD.

   • Ensure that the content includes cost records.

   • Allow the entry of cost records. Do not block the entry of pending costs.

   • Allow the entry of cost records for all sites. Assigning a site will limit the entry of cost records to the specified site.

   • Optionally prevent the ability to change status of item cost records from pending to active. The status change will be allowed after the pending costs have been completely and accurately defined.

   • Optionally define a from-date. As a general guideline, use a future date that represents the planned cutover date or the first day in the frozen period when you prepare cost data beforehand.

   • Indicate a fallback principle of none, because the fallback principle applies to BOM calculations in manufacturing environments.

2. Enter item cost records within the costing version by using the Item priceform. A separate cost record must be entered for each site that purchases or stocks the item. The cost should reflect the standard costs for the period. If a cost was entered incorrectly, change the pending cost for the item. A pending cost can also be deleted.

3. Verify item cost records within the costing version for completeness and accuracy. Use the Item pricesreport to review a list of item cost records.

4. Use the Costing version setupform to change the blocking flag to allow the status change of pending cost records.

5. Change the status to active for all pending item cost records within the costing version on the cutover date. Use the Activate pricesform to change the status for multiple cost records. You can open the Activate pricesform from the Costing versionsform. The status of individual cost records can be changed by using the Item priceform and by clicking the Activatebutton.

6. Use the Costing version setupform to change the blocking flags within the second costing version to prevent further data maintenance.

Repeat the steps in this procedure for separate costing versions when they contain site-specific costs for a multisite operation.