⤷ CO-PC-OBJ (Application Component) Cost Object Controlling
⤷ KK0C (Package) Customizing for Cost Object Controlling
|Transaction Code||S_ALR_87008042||IMG Activity: SIMG_KKSORKKOKG5|
|Customizing Attributes||SIMG_KKSORKKOKG5||Define Assignment|
|Customizing Activity||SIMG_KKSORKKOKG5||Define Assignment|
|Document Class||SIMG||Hypertext: Object Class - Class to which a document belongs.|
Here you assign the following cost elements to line IDs:
- Cost elements under which an order is debited and credited
- With work in process at target costs, all cost elements that are included in the cost estimate on which the calculation of target costs for the valuation of work in process is based (such as all cost elements in the preliminary cost estimate for the product cost collector.
Work in Process at Actual Costs
The line IDs put the costs incurred for the order into specific groups such as:
- Direct material costs
- Production costs
- Indirect costs
In the Update, the category indicates whether the cost elements under which the different postings are made are debits or credits for WIP calculation.
- You must assign all debits (such as for material withdrawals) internal activities, external activities and overhead, to line IDs of category K (costs).
- You must assign all credits (such as for material issues and order settlement) to line IDs of category A (settled costs).
See also: Define Update
You can use the debit/credit indicator to separate the costs that are written under the same cost element. This information is needed for WIP calculation to treat the withdrawal of a semifinished product from stock as a debit and the delivery of a semifinished product to stock as a credit.
Work in Process at Target Costs
In the Update, the category indicates whether the cost elements under which the costs are updated in the cost estimate on which target cost calculation for the valuation of work in process is based are relevant to WIP calculation.
- Create line IDs of category K (costs) for costs relevant to valuation (such as, direct material costs).
- Create line IDs of category N (do not take into account) for costs for which no work in process is to be created (such as production overhead). If you don't create line IDs for these costs, the system will issue an error message.
Assigning Fixed and Variable Costs to Different Line IDs
The fixed/variable indicator allows you to assign fixed and variable costs (such as costs for internal activities or for semifinished products) to different line IDs.
Capitalizing Work in Process
In the Assignment, you also define whether the work in process that must be shown as a result of these costs is to be capitalized and in what amount. For example, you can specify that:
- 100% of the work in process calculated from the direct material costs can be capitalized
- 80% of the work in process calculated from the indirect costs can be capitalized
You also define the validity dates for the assignment.
You assign the cost elements combined in line IDs to one of the following groups:
- Costs with a requirement to capitalize (ReqToCap)
- Costs with an option to capitalize (OptToCap)
- Costs with a prohibition to capitalize (CannotBeCap)
You then define the following:
- What percentage of the costs cannot be capitalized
- For what percentage of the costs you can choose whether the costs must be capitalized or cannot be capitalized
This assignment can be taken into account in the posting rules. There are three categories in the posting rules that are created from this assignment:
WIPR Work in process with requirement to
WIPO Work in process with option to
WIPP Work in process with prohibition to
You will normally define a posting rule that assigns the work in process with requirement to capitalize costs to the G/L accounts for unfinished products (balance sheet) and stock changes (P+L).
Work in process is capitalized according to this assignment.
- The line IDs with requirement to capitalize and the line IDs with prohibition to capitalize combine the costs that are treated the same according to commercial and tax law.
- The line IDs with an option to capitalize costs combine the costs that are treated differently by commercial law than by tax law.
In the Product Cost by Order component, if you are using multiple valuation views in the calculation of work in process at actual costs, the system automatically assigns the line IDs defined in the results analysis version of the operational valuation view to the results analysis versions of the multiple valuation views referencing the operational results analysis version.
You must already have defined the following:
The standard system contains predefined line IDs. You have to assign the cost elements in your cost element list to these standard line IDs before you can calculate work in process.
- Determine which cost elements you have to assign to line IDs. To display the cost elements valid in your controlling area, go into Cost Center Accounting and select Reporting -> Master data index -> Cost elements.
You must also assign settlement cost elements that you use in the allocation structure to a line ID.
Suppose you are using a nonvaluated sales order stock. You have not selected Settlement by cost element in the allocation structure. The system settles the actual costs charged to manufacturing orders to a sales order item. Settlement is made under a settlement cost element that you have specified in the allocation structure. You must assign this settlement cost element to a line ID.
- Enter the controlling area, your results analysis version and, if necessary, your results analysis key.
- Enter the cost elements, as in your cost element list, under which the primary postings are to be written to the orders, or to the standard cost estimate.
You can mask these entries. If you enter 00004+++++, for example, all cost elements from 400000 to 499999 will be included. If you want particular cost elements to be treated separately, enter them without masking (example: 0000415000).
Numeric values must be entered right-justified. Alphanumeric values must be entered left-justified.
For material costs, you can define separate line IDs for particular origin groups by entering origin groups in the costing views of the relevant material master records, and entering these origin groups with the relevant cost elements in the line IDs. If you don't want to differentiate the line IDs by origin group, mask the origin group (i.e., enter ++++).
- Enter the secondary cost elements under which internal cost allocations are written to the orders or under which the cost estimate on which the the target cost calculation is based are updated.
For production costs, you can define separate line IDs for particular cost centers, or cost centers and activity types, by entering a cost center and an activity type for secondary cost elements. If you want to differentiate the production costs only by cost elements, mask the cost center and activity type with ++++.
If you want to create separate line IDs for the fixed and variable costs from Cost Center Accounting, you can enter "V" or "F" in the var-fixed costs column.
- Enter a debit/credit indicator if appropriate.
- Enter the validity dates of the assignment.
- Enter the following:
- For each line ID, in one of the following columns:
- Requirement to capitalize
- Option to capitalize
- Prohibition to capitalize
- A percentage for the costs with a prohibition to capitalize
- A percentage for the costs with an option to capitalize
|ASAP Roadmap ID||204||Establish Functions and Processes|
|Mandatory / Optional||1||Mandatory activity|
|Critical / Non-Critical||1||Critical|
|Country-Dependency||A||Valid for all countries|
Assigned Application Components
|Documentation Object Class||Documentation Object Name||Current line number||Application Component||Application Component Name|
|SIMG||SIMG_KKSORKKOKG5||0||HLA0009426||Product Cost by Order|
|Maintenance object type||C||Customizing Object|
|Customizing Object||Object Type||Transaction Code||Sub-object||Do not Summarize||Skip Subset Dialog Box||Description for multiple selections|
|V_KKAZ||V - View||OKGB||01||Assignment of Cost Elements for WIP and Results Analysis|
|Last changed by/on||SAP||19981222|
|SAP Release Created in|