The costing relevancy indicator of the component determines whether or not costs are calculated for a material component. This indicator specifies that the component is fully relevant to costing. If the indicator is not set, the material component is not taken into account in costing. This indicator is on the material list General Data screen in the order. It is set as a default setting, but can be reset manually.

The system automatically assigns the material component to the relevant cost element via the MM Consumption Account Assignment.