Use this activity to establish a connection between the cost source indicator and cost source. The cost source indicator is essential in determining the cost source of a cost detail line. In activity Enter Cost Sources, you would have entered cost sources for your company. You must now connect the cost sources to suitable cost source indicator, depending on your company's requirements for following up on costs. This will decide the system parameters which will define the cost source entered by you.
Note: Cost source indicators are also connected to cost types via activity Cost Source Indicator Definitions.
It is now possible to follow up on costs based on the origin. Provided the cost source indicator has been appropriately associated with the part, transactions will show the cost source in its cost details. For example, if you are using Product Code as a cost source indicator, your part must be connected to a product code in the Inventory Part page.
Note: If the inventory valuation method is standard cost (and the cost level is per part), cost sources will not be taken into consideration or displayed on the cost detail lines.