The Definitions menu located in the Administration section of the LOGO application contains Cost Accounting Parameters option for cost accounting to be used. This parameter is used to specify the cost accounting method used by the company.
- When "Planned Costs Will Be Used" is selected, material costs are calculated by first using planned costs. When actual values are determined at the end of the period, differences are transferred into material costs through difference accounts.
- When "Actual Costs Will Be Used" is selected, actual figures at the end of the period are applied to material costs and posted to G/L.