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Fixed and Variable Price Portions In KP26

Former Member
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778

Hi,

For long i am trying to understand the correct usage of fixed and variable price in KP26, however no matter which portion i maintain the price in, the system is just multiplying the activity quantity with the fixed or variable price.

Please try the following :-

Fixed price : 2.00

Variable price : 0.00

Activity qty = 5

Activity cost 5 X 2.00 = 10.00

Then do the following :-

Fixed price : 0.00

Variable price : 2.00

Activity qty = 5

Activity cost 5 X 2.00 = 10.00

So based on the above, regardless of fixed or variable price, the system is still multiplying the price against the activity qty to derive the cost.

So what is actual usage of this 2 price portions?

Accepted Solutions (1)

Accepted Solutions (1)

srinivasa_maruvada
Active Contributor
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AT OKTZ we have cost component structure and and select your CCS and click on cost component with attributes.

Here you get all cost componenets and double click any one line item (say sales overhead) and you can check two radio buttons on top left side

In Cost Share if you select Variable costs, system calculates only variable costs from KP26 in Standard Cost Estimate

If you select Fixed and Variable costs it caluclates both from KP26 in Standard Cost Estimate.

Srinivas

Former Member
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This is the answer i was looking for, thanks a lot.

Answers (1)

Answers (1)

former_member309133
Active Contributor
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Hello

By maintaining the fixed and variable you can bifurcate the toal standard cost into fixed and variable. Other than this I do not see any advantage of this.

Sangram