Define Material Sub-Elements

Material sub-elements classify material costs, such as plastic or metal. A material sub-element has a default activity and a default basis type assigned to it.

Prerequisites:

To define, update, or delete cost information, the Material Subelements:Maintain security function must be included as part of the responsibility. 

To define material sub-elements:

1. Navigate to the Material Subelements window.

2. In the Defaults alternative region, enter a material sub-element name.

3. Select the default activity. This activity is defaulted each time the sub-element is used to define an item cost.Activities are processes or procedures that consume costs and time. 

In addition to the cost element and sub-element, all costs are associated with an activity. Activities may be directly related to building items, such as runtime or setup time; or they may be indirect, such as purchase order generation, payroll, and engineering change order activities. 

4. Select the default basis for the material sub-element. This basis type is defaulted when you define item costs. Basis is the method used to determine how to charge a transaction or apply product costs. The options are as follows: Item: Used for all sub-elements. For material and material overhead sub-elements, you charge a fixed amount per item. This is the default. Lot: Used for all cost elements. The item cost is calculated by dividing the order cost by the lot size.

5. Optionally, select a date on which to inactivate the material sub-element.
Note: You cannot disable the default material sub-element for the organization.

A disabled material sub-element cannot be used to define a material cost when defining item costs, or to define a default material sub-element when defining organization parameters. You can continue to use item costs previously defined for the inactive material sub-element.

To associate an expenditure type with a sub-element:

1. Select an expenditure type. If the Project Cost Collection Enabled parameter in the Organization Parameters window is set, you must associate an expenditure type with each sub-element. 

You can only select expenditure types that belong to the Inventory expenditure class. Expenditure types are defined in Oracle Projects.

2. Save your work.