Define Line IDs (SAP Library - Product Cost Controlling)

Define Line IDs

Here you create line IDs . The line IDs serve the following purposes:

In WIP calculation, the line IDs structure the work in process and reserves for unrealized costs according to the requirements of Financial Accounting.

In results analysis, the line IDs structure the results analysis data according to the requirements of Financial Accounting

The work in process, reserves for unrealized costs, reserves for the costs of complaints and the cost of sales are calculated as a total for each order and apportioned to the line IDs. For each line ID you can then define whether the work in process for that line ID must be capitalized.

Results analysis updates the work in process, reserves for unrealized costs, reserves for the costs of complaints, and the cost of sales to the sales order by line ID.

Also note the following:

In order to calculate the work in process at actual costs, you must create an additional line ID for the cost elements under which the goods receipts are posted.

For results analysis, you must create an additional line ID for the cost elements under which the revenues are posted.

You must create a cost element (type 31) for each line ID. If you have specified in the Extended Control that you want to separate creation and usage, then you must create two cost elements for each line ID.

In Customizing for Product Cost Planning in the step Define Cost Components , specify which values are relevant to inventory valuation, commercial inventory valuation, and tax-based inventory valuation. The cost components classify the costs calculated in the cost estimate into specific groups.

The line IDs for results analysis are normally grouped according to the same logic as the cost components in Product Cost Planning. For example, a line ID "raw materials" will have the same cost element interval assigned to it that is assigned to the cost component "raw materials".

It would also be possible to structure the line IDs according to the structure of the value fields in Profitabilty Analysis. In this case, you would create line IDs for the cost of goods manufactured (fixed and variable), sales and distribution costs, administration costs, and so on.

Example

The following line IDs for WIP calculation are created:

Raw materials

Material overhead

External activities

Internal activities

Production overhead

Other costs

The system calculates the results analysis data for the sales order item and distributes the calculated data to the line IDs in accordance with the cost element groups assigned to the line ID. This allows the system to calculate data such as the following:

The value of the capitalized costs incurred due to the withdrawal of a raw material

The value of the capitalized costs incurred due to an activity allocation

Requirements

You must already have processed the following steps:

Create controlling area

Standard Settings

The standard system provides a number of line IDs.

Activities

Create line IDs according to your requirements.

Further Notes

For more information, see the documentation on Cost Object Controlling.