2. Select the default cost type.
For items where costs have not been defined for the cost type, the default cost type is used as the next source of costs that the cost rollup and the inventory value reports use for items not associated with the cost type being rolled up or reported upon. You can have a cost type default to itself. The default reflects the current organization's costing method: Frozen for standard costing and Average for average costing.

3. Select a date on which to inactivate the cost type. You cannot inactivate the Frozen or Average cost types. You can still inquire (but not change) inactive cost types. Inquiring has no effect on bill assemblies or work in process.

4. Indicate whether the cost type is a multi-organization cost type to share with other organizations.
Note: If disabled, this cost type name is available only to the inventory organization that creates it. If enabled, only the cost type name is shared, not the costs.

5. Indicate whether to allow updates in this cost type.

6. Indicate whether this cost type is available to Oracle Engineering.

7. Select rollup options:
• Indicate whether to include the effect of component yield when rolling up costs for this cost type.
Important: Changing the Include Component Yield flag when there are open WIP jobs in the inventory organization may result in inaccurate cost variances. For example, if the standard cost rollup includes component yield and the Include Component Yield flag is clear, then backflush transactions will no longer factor in component yield and artificial variances will result.
• Indicate whether to save a snapshot of the bill of material structure for items that you roll up. This creates an alternate bill. (This is available only if you have Oracle Bills of Material installed.) Oracle recommends that you use an alternate designator intended for the specific purpose of maintaining a snapshot of the bill being rolled up.
If Snapshot of Bills is enabled, you must select an alternate name. You can then run the Indented Bill of Material Cost report for the alternate, even if the primary bill has changed.

8. Select previous level rollup options. These options determine how much information is generated by the rollup. (These options do not effect the total unit cost.) If all options are not selected (if the options are clear), then the rollup generates one record for all prior level costs and stores the total in the material cost element. The options are as follows:
Element: Indicates that detail cost information by cost element is retained at previous levels. If not selected (cleared), then all prior level costs are stored in the material cost element.
Subelement: Indicates whether to track subelement costs at previous levels. If not selected, then all prior level information does not reference a subelement.
Activity: Indicates whether to track activity costs at previous levels. If not selected, then all prior level information does not reference an activity.
Operation: Indicates whether to track operation costs at previous levels. If not selected, then all prior level information does not reference an operation.