How Cost Type Works in iDempiere

Cost Type in iDempiere is a master record that defines different categories of product cost values — such as current cost, planned cost, or future cost. These types are used in cost accounting and reporting.

Cost Type Purpose

• Cost Type acts as a label for cost values recorded in the system.
• It allows businesses to track multiple cost perspectives for the same product (e.g., what it costs now vs what you plan it to cost).
• Cost Types help define which cost version is used in accounting and analysis.

Defining Cost Types

• Go to Cost Type
• Create records such as:
  • Current – the cost used in accounting today.
  • Planned – expected or budgeted cost.
  • Future – a version of cost to be applied at a future date.

Cost Type in Accounting Schema

• In the Accounting Schema, a Cost Type is selected to determine which cost category the schema will use when posting product cost entries.
• For example, the Accounting Schema can be set to use the Current Cost Type for profit and loss calculations.

Cost Type Integration

• Cost Types are referenced in product cost records (e.g., M_Cost) to indicate which cost value is being tracked.
• Cost movements and accumulated cost details are associated with the selected Cost Type.

The Cost Type window in iDempiere defines categories of cost values. These categories are used in accounting and costing processes so that the system knows which cost version to use for financial posting, reporting, and cost analysis.