Because templates for cost objects are dependent on materials and orders, the SAP System must select the appropriate template at the time of the valuation event. Template selection is based on the following assignment logic:

The SAP System selects the template based on the overhead structure, the distribution key, and the environment.

• When planning product costs, the R/3 System uses the overhead structure based on the valuation variant, itself selected based on the costing variant. The distribution keys are selected through the overhead cost group in the master data of the material to be costed. The SAP System selects the environment based on the costing method (direct or product costing).
• When costing cost objects and allocating to cost objects, the SAP System uses the overhead structure and distribution key taken from the master data of the cost object. The environment is also selected based on the cost object.