Oracle Cost Management is a complete absorption, perpetual cost system for purchasing goods, Inventory, work process, and order entry transactions. Cost Management supports multiple cost essentials, cost transactions, activity based cost, comprehensive valuation/variance reporting, and thorough integration with Oracle Fusion Financials.  It automatically costs and values all inventory, work in process, and purchasing transactions. This means that inventory and work process costs are up to date and inventory value matches the cumulative sum of accounting transactions.

Cost Management offers flexible cost setup features, including many cost elements and unlimited sub elements, unlimited resources and overheads, and unlimited actions. Sub–elements allow you to analyze costs in greater detail. This enables you to accurately define and manage costs and associate them with products. It also provides flexible account setup including accounts by the organization, sub-inventory, and work process accounting class so that you can distribute costs to the proper expense accounts and capture valuation in the proper asset accounts. Perpetual inventory and work process balances are maintained on–line. Many variances are supported as purchase price, standard cost, cycle count, physical inventory, work process usage and efficiency.

Cost Management also provides widespread cost simulation, copying, and editing capabilities that allow you to project costs and keep them secure. It supports flexible period based accounting that enables you to manage in more than one open-period at the same time. You can reconcile and analyze an open-period while conducting business in a subsequent period. Further, you can transfer summary or detail account activity to General Ledger and close a period at any time.

It supports standard and Average Costing. Under standard costing, predetermined costs are used for valuing inventory and for charging raw material, resource, overhead, period close, and job close and schedule complete transactions. It is supported under Inventory and Manufacturing Costing. Under average costing, the unit cost of product is the average value of all receipts of that item to inventory, on a per unit basis.