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Primary Cost Component Split ( RELN40A_COPC_PRIMCOST )

Primary Cost Component Split ( RELN40A_COPC_PRIMCOST )

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Primary Cost Component Split

Description

From Release 4.0, there is a new costing option in the structuring of the planned costs of a product: the primary cost component split in the form of the cost of goods manufactured according to the original production factors.

While the cost component split for cost of goods manufactured shows the value flow based on the receiving activity type, the primary cost component split displays the original cost elements of this activity type. This enables depreciation to be transferred into the cost estimate, for example.

The functions in detail:

  • Activity types and processes that are included in the cost estimate carrying a primary cost component split can transfer this information into the cost estimate. A requirement for this is that the primary cost component split has been used for activity types in Cost Center Accounting.

  • Grouping a product's costs into its primary costs is carried out as with the cost component split for cost of goods manufactured: the costs are collected in cost components, to which intervals of primary cost elements are assigned. Cost portions can be subdivided into fixed and variable portions.

  • Primary cost component splits can be created with and without quantity structure in the cost estimate as well as in the sales order cost estimate.

  • The costing variant enables two cost component splits of differing cost component structures to be calculated simultaneously. Primary cost component splits and cost component splits for the cost of goods manufactured can be costed at the same time.

When two cost component splits are costed simultaneously, one structure is the main cost component split. The other is defined in the cost component structure as the auxiliary cost component split.

  • Updating the standard price in the material master can also be carried out through the primary cost component split.

  • The primary cost component split can be evaluated for flexible contribution margin accounting in Profitability Analysis.

Damage caused to data by errors

Software/hardware requirements

Installation information

Effects on System Administration

Effects on Customizing

Define cost components

Effect on batch input

Changes to the Interface

Changes in procedure

Procedure for removing dataset errors

Dependent functions

Planning

Further notes

Further information can be found in the documentation for Product Cost Planning in the R/3 Library and in the Implementation Guide for Product Cost Controlling.






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