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category
Definition
Flags the cost elements that are grouped into
line IDs for the calculation of work in process and results analysis.
- WIP calculation at actual
cost
The following
categories are used:
All costs for which
work in process can be created (such as material costs, internal activities,
and external activities) must be assigned to line IDs of this
category.
All cost elements
for goods receipts to stock (that is, credit postings for the order) must be
assigned to line IDs of this category.
The order is credited at the time of the goods receipt. The costs
credited to the order at the time of the goods receipt are subtracted from the
debits of the order if WIP at actual costs is being used. The work in process
is the difference between the debit and credit.
- N - Costs that are not to be
included
All cost elements
for which no work in process is to be created (such as sales and
administration costs or special direct costs of production) must be assigned
to line IDs of this category.
The other categories
are only used in results analysis.
The following
categories can be used:
Results analysis
compares the actual cost of this category with the calculated cost of sales.
If the cost of sales is less than the actual cost, work in process is created
in the amount of the difference. If the cost of sales is greater than the
actual cost, reserves for unrealized costs are created in the amount of the
difference.
- P - Cost of complaints and
commissions
Reserves for
complaints and commissions are created for costs of this category in the
amount of the planned costs. These reserves are immediately assigned to the
cost of sales as an expense. No work in process is created for actual costs of
this category. The reserves for complaints and commissions are used as actual
costs are incurred. If the actual costs are greater than the reserves,
reserves are canceled at a later time affecting the earnings.
No inventories are
created for actual costs of category P.
Neither WIP nor
reserves are created for costs of this category. If actual costs are incurred
for this category, they are charged directly to the cost of sales. Packaging
costs and shipping costs are examples of direct costs.
Using the actual
revenue, the system can calculate the cost of sales in accordance with the
valuation method. Reserves for imminent loss can be created on the basis of
the planned revenue.
Costs of category A
do not play a part in results analysis.
- N - Costs that are not to be
included
All cost elements
for which you do not want to create work in process (such as administration
costs) must be assigned to line IDs of this category. During results analysis,
you assign to this category all cost elements with which the object ( sales order item or WBS element) is already credited. Define a line ID that contains the cost elements under which the object
has been credited.