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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.

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.
This category is used with WIP calculation at actual costs.
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.
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.
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.
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.