Create cost component views

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Create cost component views

Here you define cost component views for product costing.

You can display the results of product costing in the following views:

Cost of goods manufactured

Cost of goods sold

Sales and administration costs

Inventory (commercial)

Inventory (tax-based)

Stock valuation

If you carry out product costing, you can switch between the views defined here when you display the cost estimate. In the costing type, you can also specify a calculation base according to which, for example, the overhead surcharges for the semi-finished products used in the finished product are calculated on the basis of the cost of goods manufactured for these materials.

These cost component views also determine how the costs are used in other areas of the R/3 system.

In sales order costing, the view for the cost of goods sold determines what costs are used as a basis for pricing in the SD module to calculate a net value for the sales order item.

In Profitability Analysis, the view for the cost of goods sold determines what costs are compared to the sales revenues to compute the contribution margin per product.

In Materials Management, the view for stock valuation determines what costs go into the standard price for the product.

For Materials Management, the views for stock valuation determine what costs go into inventory costing.

In this step you specify what cost components are displayed in the various views by selecting different characteristics. For the cost of goods sold view, for example, you select the cost of goods manufactured and the sales and administration costs. For the stock valuation view, you only select the stock valuation field.

These characteristics are defined for the individual cost components. For example, you specify that cost component 1 goes into the cost of goods manufactured and that it is relevant for stock valuation. Through the cost element assignment, you specify that cost component 1 contains the costs for the raw materials.

Requirements

The standard system contains a predefined cost component structure for which a number of cost component views are defined. If you want to use this cost component structure, you only have to check whether the entries in it meet your requirements by carrying out the following steps:

Maintain cost component structures

Define cost components

Assign cost elements

Activities

To create a new cost component view, proceed as follows:

1. Choose New entries.

2. Enter a number as the key of the cost component view.

3. Select the characteristics of the cost components that you want to have displayed in this view.

You can define one or more characteristics under one view. You have the following options:

initial cost split

Sales and administration costs

Cost of goods manufactured

Stock valuation

Commercial inventory

Tax inventory

Transfer price surcharge

4. Enter a description for the cost component view.

Further Notes

Sales order costing can use the cost component structure of non-order-related product costing. If you have already performed the step Create cost component views, you can skip this step.