Cost Component Structure - Split

[#1]

Dears

I need some inputs from you for clarification.

I know that the costs of : Materials (BOM) / Activity Allocation (Secondary) / Overhead Elements (Secondary) could be displayed in the cost component structure after the costing run.

But is it possible to display the primary cost elements such as salary primary cost elements in the Cost Element split.

I know the GLs (including Salary GL) are used to estimate the total Cost Centre cost for activity price calculation.

My issue is : Our costing manager has asked me to include the GL 'Education Expenses' as part of the Cost component Structure.

I can include this cost element in the Structure. But how the value will flow to this component in the structure ? Please help me to understand this.

[kamalkumar_biswas2 · Accepted solution]

Hi Nikki

If you want to display this Education Expenses as a separate component line then follow the steps:

1. Define an attribute ..Education exp

2. Assign CE related to education exp to that attribute

   T code OKTZ

kamal

[former_member218048 · Accepted solution]

Thanks.

I can define this attribute in the OKTZ and assign the Cost element.

But how the value will be captured against this in the cost component structure ?

That part is not clear to me.

[kamalkumar_biswas2 · Accepted solution]

Nikki

You will find a check box (Primary cost comp split) and that must be active when you define attribute then system will automatically split into primary CE to your structure as per CE assign to that attribute.

Kamal

[former_member218048 · Accepted solution]

Sir

I understood the setting in the system. But I don't think just addition of a cost element in the structure will not display any value... Am I right ?

I don't understand if I add GL "Education expense", how the system decides how much amount should  be part of the Split ?

In other words, if I plan INR 12000 for "Education Expense" GL in the Cost Centre ABC, how the system will route this 12000 finally to the Cost structure of the Product ?

I hope I have made my query clear to you.

[kamalkumar_biswas2 · Accepted solution]

Hi Nikki

Steps are like that...

1. You have plan Edu exp in CCtr ABC

2. May be allocated this cost to various Prod CCtr through Assessment cycle(SCE)

3 Calculated Activity Price of Prod CCtr (SCE)

4. Act Cost has flown to Product through Routing

5. In CK11n estimated cost and find Itemization view E (Activity)

6. Assign Activity SCE in your CCS

7. So your Edu Exp are already in Activity Cost

8. System will trigger Edu exp from Act Cost and split to Edu Exp attribute line

   I think ..clear

kamal

[former_member218048 · Accepted solution]

Dear Sir

I understand that the Education Expense (Primary Cost :: GL 650091) will be finally part of the Internal Activity Allocation element (911005) amount and will be shown in the structure with the secondary cost element details (not as the primary cost element used to post the Education Expense).

It will not be displayed with the GL 650091, right ? i.e. this expense will be part of the allocated expense of the Cost centre which provided the activity.

[kamalkumar_biswas2 · Accepted solution]

Nikki

   Yes..........

1. In CCtr ABC It will be as Edu Exp (Pri CE)

2. In Pro CCtr where you have allocated/transfer through assessment in SCE

3. In Activity rate in SCE Activity

    But you can split it from activity SCE to Pri CE in CCS as I have explained above..

kamal

[former_member218048 · Accepted solution]

Oh..Is that possible ?

I think in our case, the cost centre will be allocations from around 700 cost elemetns which will be used to calculate the activity price (cost element).

As you said it is possible to split to the originating primary cost element, the cost component will show 700 line items ?

[kamalkumar_biswas2 · Accepted solution]

Nikki

CCS have limitation of 40 attributes (Vari is one attribute and fixed is one attribute will be considered)

So within the 40 attributes you have to define whatever your requirements..

Eample:

Attribute  01   Raw material cost  assign all CE related to raw mat consumptions

                02  Salary & Wages    Assign all CE related to Salary and wages

                03  Education Exp      Assign all CE related to Edu Exp

   Like that

You can't define 700 lines in CCS...you can group similar CE to an attribute in CCS limited to 40 but remember if each line has variable and fixed both system will count 2 attribues..if only variable system consider 1

Kamal

[former_member218048 · Accepted solution]

Sir,

I think we are not in the same page here..

40 Attributes are fine. We have only 15 attributes here.

But I mean to say is the attribute, "Salary & wages" is the total of 700 cost elements in our case.

I understood from your previous reply that the Attribute "Salary & wages" can be split into its Primary cost elements (approx. 700 in our case).

[kamalkumar_biswas2 · Accepted solution]

Nikki

You mean to say you have 700 GL & CE in salary & wages?

If..that is the case..assign GL/CE range in the Sal & Wages attribute ...system will pick up all and post to SAL & Wages attribute line item

kamal

[former_member218048 · Accepted solution]

Dear Sir,

I think I can show you an example in our case:

Please see the screen below and tell me whether the cost component structure will display all the Primary cost elements (18 nos.) under the attribute "Salary & Wages" ?

[kamalkumar_biswas2 · Accepted solution]

Nikki

These all 18 CE related to sal & wages ? you can assign them in Sal & wages attribute and all accumulated cost of these CE will flow to your Sal&Wages attribue for the particular product when you display CCS view ...ok

Which CE will go to your attribute that depends what are the CE you assign to that attribute..clear

Kamal

[former_member218048 · Accepted solution]

I am sorry if I am troubling you again

You are telling "..these 18 CE will flow to your Sal & wages Attributes..." I have not doubt on this.

But how about the display of "Salary & Wages" attribute in the costing result ?

You said it can be split into Primary cost elements.

Will that display each 18 Cost Elements separately under "Salary & Wages" ?

[kamalkumar_biswas2 · Accepted solution]

Nikki

No No...in one line all accululated cost of primary CE under S&W will come..not each CE

Kamal

[rajneesh_saxena · Accepted solution]

Hi Nikki

Excellent explanation given by Kamal.

I only want to add that after doing all settings as explained by Kamal you need to do fresh planning only then system will pick new settings.

Regards

Rajneesh

[former_member218048 · Accepted solution]

Ok. That was my doubt.

Thank you.

[Former Member · Accepted solution]

Hi,

I would like to add one

700 Primary cost element needs to be grouped within 40 cost fields

As you mentioned business need education expenses, we need to map the education expenses related PCE to Education expenses attribute

Thanks and regards

VSN

[former_member218048 · Accepted solution]

Friends

Yes I understand. But as Mr.Kamal explained, it is not possible to show the split of the primary cost elements in each attribute. System only give the accumulated costs under each attribute.

Now I wonder how can I get the split of each amount with the Cost Element information in the costing structure (even if not possible in the Costing Display; but at least through some other reports !!).

[kamalkumar_biswas2 · Accepted solution]

Hi nikki

You can get cost center level report by making a report in report painter but there you will not get Material cost easily. Only possible if you use SKF and LIS link and use that SKF in report pinter..But very complicated...If you have idea then can proceed.

Kamal

[Former Member]

Hi,

Primary cost component split will give solution for your requirement.

1) You need to assign the preliminary cost component structure in CO version under price calculation tab.

2) We have to include the primary cost elements range in the OKTZ.

Thanks

VSN