Whether planned costs are calculated for a material component depends on the costing relevancy indicator of the component. This indicator specifies which factor is used to calculate the component costs. If the indicator is not set, the material component is not taken into account in costing. This indicator is on the General data tab page of the component detail data.

The system automatically assigns the material component to the relevant cost element via the MM Consumption Account Assignment. Examples of consumption accounts in the standard chart of accounts are:

• 400000 Consumption raw materials

• 410000 Consumption trading goods

• 890000 Change in stock of unfinished products