The Controlling level determines the level in Product Cost Controlling at which you can perform the following activities for a material:
There is only one Controlling level for each plant andprocess category for a given material. By means of various characteristics, this Controlling level determines the level of detail of the procurement alternatives created. The standard setting for the Controlling level is determined by the characteristics Material/Plant. For example, the Controlling level for the process category production can be set to show more detail by means of the additional characteristic Production Version.
The Controlling level determines the characteristics with which the procurement alternatives and procurement processes are generated and for which data is updated.
If you specify the Controlling level, it is valid for all application components.
Take the example of a material that is manufactured with different production versions. You can plan costs, update actual costs, and determine target costs. You use the Controlling level to specify that the costs for each production version can be updated and analyzed.
The next example shows how the Controlling level Production Version is used in the application components Product Cost Planning, Cost Object Controlling, and Actual Costing/Material Ledger:
If you want to calculate a standard price for the material that includes the costs for each production version, you can create a procurement alternative in Product Cost Planning for each production version. The system sets the Controlling level for the material at the level of the production version. You can mix the procurement alternatives in the ratio in which you anticipate the production versions will be used in production. The standard cost of each procurement alternative is calculated and mixed in the standard cost estimate for the material. The resulting mixed price can be updated as the standard price of the material.
You are manufacturing the material with two different production versions 0001 and 0002. You create a product cost collector for each production version in the Product Cost by Period component. The system collects the costs for each production version on this product cost collector. The system calculates the periodic unit price for the material in the application component Actual Costing/Material Ledger. You can analyze the values by production version in the master data of the material ledger.
Controlling levels are created for plant materials. There is only one Controlling level for each material and process category. Which Controlling level can be used depends on the process category (such as production). The Controlling level determines the characteristics that are used to identify a procurement process or procurement alternative:
*If you have not explicitly set the Controlling level, the system automatically sets the level to Plant/Material. Remember that the data volume on your computer will increase if you choose a higher level of detail for the Controlling level.
If you are using product cost collectors, the level Production Plant/Planning Plant for the process category production is the least detailed Controlling level.
Controlling Level in Application Component Product Cost Planning
You always create a procurement alternative with reference to the combination material/plant and (if applicable) valuation type. You also assign a process category to each procurement alternative. For more information, refer toCreating/Changing/Displaying Procurement Alternatives and Mixed Costing.
Controlling Level in Application Component Product Cost by Period
In the Product Cost by Period component, the only relevant process category is Production (theproduction process). A production process is required in Product Cost by Period when you want to do the following:
If you want to collect costs on a product cost collector, you specify which Controlling level you want to assign to a plant material when you create the product cost collector. If a more detailed Controlling level has already been defined for the plant material, then that Controlling level is used when a new product cost collector is created.
If you want to assign the combination material / plant / production process to a cost object node but no relevant production process exists for the plant material, you can create the production process manually (see also:Creating a Production Process for a Cost Object Hierarchy). In this case you select the Controlling level when you create the production process.
Controlling Level for Production Process
The following Controlling levels for the production process are allowed in the Product Cost by Period component:
You can use this Controlling level for example to create a product cost collector for each production plant, planning plant, and production version of a material.
The Controlling level Production Version should always be used when production versions have been defined (such as in repetitive manufacturing).
You can use this Controlling level for example to create a product cost collector for each production plant, planning plant, and BOM/routing of a material.
The Controlling level BOM/Routing should only be used if the material is not produced in repetitive manufacturing.
Refer to the section
The Controlling Level in Application Component Actual Costing/Material Ledger
The standard Controlling level Plant/Material provides the full functionality of actual costing. Choosing a more detailed Controlling level increases the accuracy of the values in the master data of the material ledger and enables a more exact analysis of the actual costs.
The Controlling level for the plant material can be changed under certain conditions. Such changes then apply to all application components. For more information, refer to
See also:Product Cost by Period Actual Costing/Material Ledger