Primary Cost Component Split for Cost Estimation
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.
2. Assign Cost elements to cost component structure: OKTZ
3. Creation of Auxiliary cost component structure: OKTZ
4. Assignment of Cost elements to cost component Structure:
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:
6. Active the main cost component structure as bellow.
7. Activation of Auxiliary cost component structure
8. Assign the Auxiliary cost component structure in planning versions: OKEQ
9. Primary cost Planing for cost center in KP06:
10. Activity Planing (Only Qty) in KP26:
11. Creation Of Splitting Structure: OKES
Assign Cost elements and Activity types in Splitting Strucuter
12. After This Configuration Run KSS4(Plan Cost Splitting) and KSPI(Plan Price Calculation)
CK11N : Standard Cost Estimation
Itemization Over view:
Cost component View: Maint Cost Component Structure:
Cost displyed in Rawmaterial and Activity type components.
Cost component View: Auxilary Cost Component Structure
Activity costs(Machine, Labor & Set up) Bifurcated in to primary cost components such as Salaries, rent and Depreciaion etc.
Very good document .....
I like the document and in fact I was wondering why this aspect has not been touched so far by any one of us? Great.
May I ask why splitting step is touched here? Is that a mandatory step in this process?
Thank you Rajneesh and Pavan,
Splitting is mandatory if you use activty inedependent planing otherwise not required. In the example i have used activity independent planing hence i used splitting
Very nice document Ram....
This will surely help many upcoming CO consultants.
Keep up the good work.
Thank you NSK
Really very good doc to understand the concept...I have few points
1. Can we not get the result within the main CCS? In my view we can get it because here main CCS created like itemization view..so in auxiliary view again you breaking the cost at primary level which we can get in single view (Main CCS)
2. If I am wrong please correct me
But again a appreciate the concept explained here.
In main CCS we cant get it. Since in main CCS we need to assign all cost elements(Which are the part of BOM and Routing) to cost components. If you assign primary cost elements in main CCS we will get error for activity cost i.e 43 category cost elements.
So here we need to use both Main CCS and Auxiliary CCS for primary cost component split
No..you are not correct..If you assign both CE cat 43 for activity and related Primary CE in Main CCS it will break the 43 into primary and 43 cat will shown as 0 value by splitting into related primary CE...so separately you need not to define auxiliary CCS. I have done it in all my implementation because unnecessary user has to see 2 CCS report for break up.
Thank you for correct me. I will try this time.. Thanks a lot.
It's all right..pl test it to remove any confusion...but post doc like this will help many ...
Hi, Could you please show how to realize primary cost component split without auxiliary CCS? I tried a lot of times, but still can not get correct result.
Hi Rama Krishna,
Nice explanation...Thanks for sharing information
Thank you Ahamed.
Very Good document... keep up doing the good work.... 🙂
I have a question, the same customizing applied to Actual Cost (Material Ledger) ?
The same question from me, and I am involved in a project with the exact solution in ML,
Test it and not work
if you have the same situation, email me firstname.lastname@example.org, let's discuss in detail
Great Job.... Keep it up.
Thank you, I was exactly looking for this for my client.