Cost component structure

[Former Member]

Dear All,

When we define Cost Component Structure the system asks to assign the cost elements to their respective components. These cost elements are made from the GL that were asked by the Material Management module.

Can anyone explain me how the MM module and Co module are integrated here and how these components are decided. Are these components are decided by the MM module?

Thanks in advance...

[Former Member]

Hi

The cost component structure groups cost elements into cost components to show the following information:

Activity prices for an activity type

Cost of a process

Planned cost of a product

In Product Cost Controlling (CO-PC), the cost component structure determines the attributes for passing on the following costs:

Material costs passed on to material valuation as the standard price or inventory price

Cost of goods manufactured passed on to Profitability Analysis

http://sap.ittoolbox.com/groups/technical-functional/sap-acct/ke27-cost-component-structure-2279961

Please go through the below mentioned link

http://help.sap.com/saphelp_470/helpdata/en/7e/cb802643a311d189ee0000e81ddfac/content.htm

http://help.sap.com/saphelp_46c/helpdata/EN/cb/154b6e5733d1118b3f0060b03ca329/content.htm

Hope it will help you

Regards

Praveen PC

Edited by: Praveen Chirakkel on May 13, 2011 1:57 PM

[Former Member]

Hi,

well the decision which cost component(s) structure(s) is (are) used is business requirements driven.

Most of the companies I know the FI/CO responsibles decide which GL accounts / cost elements are created and define rules for logistics, which material is assigned to which valuation class (to hit the predefined GL accounts).

And the cost component structure is made by CO responsibles it is influencing how your plan cost estimation results are stored (table KEPH) and other CO things (variance calculation per cost component, assignment to CO-PA value fields...)

Best regards, Christian

[Former Member]

I also want to know that what is defined in cost component structure ? Only materials which will be a part of BOM will be defined or the activities in the routing is also defined?

[Former Member]

Hi,

Cost component structure is the setup which defines the break up of the cost of a product/ production order. Each component will flow either from material (RM cost), costing sheet (material overhead) or activities confirmed from production orders (processing cost). In simple words each cost component will be a line item when you view the cost of a product / production order.

This is purely a CO activity. Cost components of material cost will be linked to material cost elements(primary) whereas as overheads and processing costs will be linked to respective secondary cost elements.

Best Regards

Vimal