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Primary Cost Component Split for Cost Estimation

Significance:

The primary cost component split is an alternative way of showing the cost of goods manufactured of a product. This cost component split assigns the primary cost elements for the cost center or process to the cost components, which enables you to see the composition of the price for the activity type or the costs for the process.

The primary costs from Overhead Cost Controlling can either be transferred directly into the primary cost component split of the product or assigned to other cost components. In this way, you can explode the costs for specific internal activities partly by their primary costs, and combine them partly as secondary costs.

Configuration is as follows.

1. Create Main Cost Component Structure in OKTZ.

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2. Assign Cost elements to cost component structure: OKTZ

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3. Creation of Auxiliary cost component structure: OKTZ

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4.  Assignment of Cost elements to cost component Structure:

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Note: Ensure that do not assign any 43 category cost elements in the above step. Assign only all primary cost elements.

5. Assignment of auxiliary cost component structure to Main cost component structure:

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6. Active the main cost component structure as bellow.

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7. Activation of Auxiliary cost component structure

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8.  Assign the Auxiliary cost component structure in planning versions: OKEQ

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9. Primary cost Planing for cost center in KP06:

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10. Activity Planing (Only Qty) in KP26:

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11. Creation Of Splitting Structure: OKES

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Assign Cost elements and Activity types in Splitting Strucuter

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12. After This Configuration Run KSS4(Plan Cost Splitting) and KSPI(Plan Price Calculation)

Results:

CK11N : Standard Cost Estimation

Itemization Over view:

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Cost component View: Maint Cost Component Structure:

Cost displyed in Rawmaterial and Activity type components.

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Cost component View: Auxilary Cost Component Structure

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Activity costs(Machine, Labor & Set up) Bifurcated in to primary cost components such as Salaries, rent and Depreciaion etc.

Regards,

Ram

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