Define assignments for results analysis

Here you assign the cost elements under which the object is debited and credited to line IDs.

The line IDs assign the costs incurred for the results analysis object to specific groups, such as:

• Direct materials costs

• Production costs

• Indirect costs

In the assignment, you determine how the capitalized costs (or the work in process) that has to be displayed as a result of these costs, is to be capitalized. You can, for example, specify that:

• All the capitalized costs that have to be displayed as a result of the direct material costs can be capitalized

• Only 80% of the capitalized costs that have to be displayed as a result of 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:

• capitalize

• capitalize

• Costs with an option to capitalize

You then specify 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 is taken into account in the posting rules. Three categories are created in the posting rules based on this assignment:

The debit/credit indicator allows you to separate costs that are updated under the same cost element. This enables results analysis to recognize that the withdrawal of a semifinished product from stock should be treated as a debit, while delivery or settlement should be treated as a credit.

The fixed/variable indicator allows you to treat the fixed costs for internal activities and overhead differently from the variable costs. The costs for semifinished products with price control indicator S are also split into fixed and variable costs.

You will normally define a posting rule that assigns the results analysis data to the G/L accounts in Financial Accounting. For example, you assign the capitalized costs to the accounts "unfinished products" and "stock changes", while you assign the reserves to the accounts "expenses to reserves" and "reserves".

Remember:

• By means of the line IDs with a requirement to capitalize and the line IDs with a prohibition to capitalize, you can combine the costs that are treated the same according to commercial and tax law.

• Through the line IDs with an option to capitalize, you can combine the costs that are treated differently according to commercial and tax law.

Note

• When you perform revenue-based results analysis, you must assign the revenue elements to a separate line ID of category E.

• To be able to calculate work in process, you must assign the cost elements under which the credits are to be written to the production order to a separate line ID of category A.

• Results analysis only includes the costs whose cost element is assigned to a line ID. Results analysis only includes the revenues whose revenue element is assigned to a line ID. Costs that have been updated on the sales order item under a cost element that is not assigned to any line ID are shown in results analysis as Unassigned costs.

If you are using a nonvaluated sales order stock or a nonvaluated project stock, make sure that the settlement cost elements under which manufacturing orders have been settled to the sales order item or WBS item are assigned to line IDs.

Transfer Prices

If you are using multiple valuation views, the system automatically assigns the line IDs defined in the results analysis version of operational valuation to the results analysis versions of multiple valuation referencing the operational results analysis version.

Requirements

You must already have processed the following:

• Define results analysis versions

• Define results analysis keys

• Define line IDs

If you want to differentiate the material costs according to origin groups, you must already have carried out Define origin groups.

Standard Settings

The standard system contains line IDs. You must assign the cost elements and revenue elements in your cost element list to these standard line IDs before you can carry out results analysis.

Actions

1. Decide which cost elements you need to assign to the line IDs. To display the cost elements valid in your controlling area, go to cost center accounting and select Reporting -> Master data index -> Cost elements.

2. Settlement cost elements that you use in the allocation structure must be assigned to a line ID.

Example: Example 2

Suppose you are using a nonvaluated sales order stock. You have not selected the By cost element indicator in the allocation structure . The system settles the actual costs assiged to manufacturing orders to a sales order item. This 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.

3. Enter the controlling area, your results analysis version and, if necessary, your results analysis key.

4. Enter the cost elements (according to your cost element list) under which the primary postings are to be written to the objects (order, project, sales order).

You can mask these entries. The entry 00004+++++ includes the cost elements from 400000 to 499999. If you want to process particular cost elements separately, enter them unmasked (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 in the line IDs with the relevant cost elements. If you don't want to differentiate the line IDs by origin group, mask the origin group with four plus signs (++++).

5. Enter the secondary cost elements under which internal cost allocations are to be written to the objects.

For production costs, you can define separate line IDs for particular cost centers or for cost centers and activity types by entering a cost center and activity type for secondary cost elements. If you want to differentiate the production costs only according to cost elements, mask the cost center (enter ++++).

If you want to create separate line IDs for the fixed and variable costs from Cost Center Accounting, you can enter a V or an F in the column Variable/fixed costs.

6. Enter a debit or credit indicator as required.

7. Enter the validity dates for the assignment.

8. Specify the following:

• A line ID for each line in the following columns:

Requirement to capitalize

Option to capitalize

Prohibition to capitalize

• Percentage for the costs with a prohibition to capitalize

• Percentage for the costs with an option to capitalize

9. For revenue-based results analysis, enter the revenue elements, according to your cost element list, under which revenue is to be written to the objects.

10. For WIP calculation, enter the cost elements, according to your cost element list, under which credits resulting from deliveries and partial deliveries are to be posted.