How to distribute manufacturing costs to Cost Center?

[SAPSupport]

We would like to distribute manufacturing costs in Event-based scenario to Cost Centers and understand the process for it.

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[SAPSupport · Accepted solution]

Hi SAP Community,


In some production scenarios you can allocate manufacturing costs to a non-material (non-MAT) receiver like cost center, WBS element, and order instead of material inventory.


In this case, in event-based production cost posting, WIP capitalization is not relevant for manufacturing orders without settlement to material. Therefore, for these orders, costs allocated from goods issue or confirmation will be passed immediately to the defined non-MAT receiver (cost center, WBS element, or order). The following posting is made:

• Consumption on non-MAT receiver is debited.

• Consumption on manufacturing order is credited.

If the goods delivery is posted, the costs will be deduced in the non-MAT receiver, and the following posting will be made:

• Consumption on manufacturing order is debited.

• Consumption on non-MAT receiver is credited.

Event-based cost distribution is status-independent and will be posted at every goods issue, confirmation, or goods receipt. Therefore, the total actual costs of the manufacturing order is always 0.


Kindly check the below SAP Help Portal documentation for more details:

Event-Based Cost Distribution Posting (non-MAT Receivers)


Best Regards,
SAP Support