cancel
Showing results for 
Search instead for 
Did you mean: 

oktz cost component and cost element

Former Member
0 Kudos

hi,

in oktz, there is an assignment from cost component to cost element.

may I know what is the meaning and effect of this assignment?

thanks

Accepted Solutions (0)

Answers (1)

Answers (1)

Former Member
0 Kudos

Hi,

The Cost Component Structure allows you to group costs in an easily recognized grouping. For example, all Labor-related costs should be grouped into a 'Labor' Cost Component, all Material-releated costs should be grouped into a 'Material' Cost Component, etc. This then allows you to report on the Material Cost for a Product (which would be everything contained in the Material Cost Component), the Labor Cost for a Product (which would be everything contained in the Labor Cost Component), etc. A Costing Sheet, on the other hand, is a mechanism through which you can apply Overhead. So, the Cost Component Structure should be established first (that way you will know which Cost Elements are Material-related, Labor-related, Overhead-related, etc.) and the Costing Sheet should be created after that.

Check these two links also.

http://help.sap.com/saphelp_45b/helpdata/en/cb/154b6e5733d1118b3f0060b03ca329/content.htm

http://help.sap.com/saphelp_45b/helpdata/en/2d/f52c7dd435d1118b3f0060b03ca329/content.htm

Thanks,

Rau