Settlement of a Cost Object Hierarchy Without Actual Cost Distribution
You normally use a cost object hierarchy without distribution when you have assigned materials to the cost object hierarchy whose price control indicator in their master record is set to S.
You assign materials to this hierarchy. Create product cost collectors or manufacturing orders for the production of these materials for which settlement will be by period.
After settlement, you can display the second distribution rule (receiver = profitability segment) for the cost object hierarchy.
Settlement of a Cost Object Hierarchy With Actual Cost Distribution
You normally use a cost object hierarchy with distribution when you have assigned materials to the cost object hierarchy whose price control indicator in their master record is set to V.
You assign materials to this hierarchy. Create product cost collectors or manufacturing orders for the production of these materials for which settlement will be by period. The system generates a settlement rule for these orders that assigns the order costs to the material (stock) by period. These costs influence the stock value.
Distribution is carried out on the basis of the target costs for the assigned materials. The actual costs are updated to the product cost collectors or production orders.
The system calculates variances for all orders and sets the status variances calculated.
For a manufacturing order, the settlement receiver is the profitability segment for the material produced, the settlement share is 100%, and the settlement type is periodic.