Definition of fixed and variable costs

[Former Member]

Hi,

where do I define if a an expense account is a fixed or variable cost element? Do I have to set up separte expense accounts in the Chart of Accounts for fixed and variable?

Can you give me some info of how this is done.

Thanks

Paul

[Former Member]

HI Paul,

Cost elements are not set up as fixed or variable. The process is as follows:

In KP26, for a particular cost centre, link an activty type to the cost element.

When you are in KP06, you will see that you now have a fixed and variable amount column available for your planning.

In a manufacturing environment:

You then use KSPP to calculate the activity qties required, KPSI to populate the cost centre with that info, and KSPI to calculate an activity price.

In CK11N/CK40, you then calculate the material cost taking into account the fixed variable split.

[Former Member]

Hi Paul,

You can use the features of Cost Element Attributes and Cost Element Attributes Mix for this.

Pls check OKA4 and OKEC transaction codes for this. IMG -- CO -- CE Accounting -- Master Data -- Cost Elements

Once you create the Attribute Mix, you can populate it in the Cost Element Master Data.

You can describe a cost element with a maximum of eight attributes, independent of the chart of accounts. You can use these attributes for evaluations in reporting.

You can store a valid combination of permitted attributes:

--In the cost element's master data

--In cost center planning for the combination cost center/cost element

Pls revert back for further explanation...

Srikanth Munnaluri

[former_member182098]

Hello,

There are no fixed and variable cost elements.

The only cost elements are primary and secondary. For primary cost elements, the pre-requisite is that you must have a GL account. For secondary cost element, there is no need of GL Account. Secondary cost elements are for the purpose of CO only.

However, you can plan fixed or variable amounts / quantities in KP06 or KP26

Regards,

Ravi