Example for Settlement Without Actual Cost Distribution
The following tables show the effects of certain business transactions on a cost object hierarchy:
The cost object hierarchy consisted of a cost object node to which two materials were assigned. A product cost collector was created for each material.
This procedure should only be used for materials for which the price control indicator is set to S (standard price). The costs for materials for which the price control indicator is V (moving average price) should be distributed to the orders and settled to stock when the orders are settled.
The following report shows the first product cost collector:
Costs |
After goods receipt |
After settlement |
See |
Debits (material, activities) |
50 + |
50 + |
|
Credits (confirmed quantity x standard price) |
100 - |
100 - |
Delivery of first product cost collector (in hierarchy) to inventory |
|
50 + (settlement of balance) |
Settlement of product cost collector | ||
Balance (actual costs minus target costs) |
50 - |
0 |
The following report shows the second product cost collector:
Costs |
After goods receipt |
After settlement |
See |
Debits (material, activities) |
75 + |
75 + |
|
Credits (confirmed quantity x standard price) |
150 - |
150 - |
Delivery of second product cost collector (in hierarchy) to inventory |
|
75 + (settlement of balance) |
Settlement of product cost collector | ||
Balance (actual costs minus target costs) |
75 - |
0 |
The following report shows the data entry object (that is, the cost object node itself):
Costs |
After goods receipt |
After settlement |
See |
Debits (material, activities) |
75 + |
75 + |
|
Credits |
0 |
75 - |
Settlement of the cost object node |
Balance |
75 + |
0 |
The following report shows the summarization object (the cost object hierarchy after summarization in the Product Cost Controlling Information System):
Costs |
After goods receipt |
After settlement |
See |
Debits |
200 + |
200 + |
|
Credits |
250 - |
250 - |
Delivery of product cost collector in the hierarchy to stock (cumulative) |
|
125 + |
Settlement of product cost collector | ||
|
75 - |
Settlement of cost object node | ||
Balance |
50 -* |
0 |
Settlement resulted in the following postings:
* For the cost object hierarchy as a whole, a balance of USD 50 was posted to the price difference account.
See also:
For detailed information on the reports provided in the information system, see the document Product Cost Controlling Information System.