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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.
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
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, suppose you have an item with following configuration:
- Site: Physical inventory = Yes, Financial inventory = Yes
- Warehouse: Physical inventory = Yes, Financial inventory = No
- Batch No.: Physical inventory = Yes, Financial inventory = No
For this example, 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 field is 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.