Source Structure
Use
A source structure can be used to group total costs by source assignment. If you do not use a source structure, the costs must be apportioned equally to all cost elements. Source structures therefore enable you to define distribution rules that only refer to specific cost elements.
Prerequisites
You define a source structure in Customizing for Product Cost Planning under Cost Estimate with Quantity Structure
® Costing in Joint Production ® Define Source Structure. You assign a source assignment to each cost element group for which you want to apportion the cost separately.You specify the source assignment in the material master record of the primary product or process material in the MRP view in the
apportionment structure.When you create a source structure, make sure that each debit cost element is assigned to a source assignment. If you are using a cost object hierarchy, the cost elements distributed to the manufacturing orders assigned to the lowest node in the cost object hierarchy must also be included.
Features
Example for the Cost Apportionment in Joint Production Without a Source Structure
Cost Element Groups |
Equivalence Number, |
Equivalence Number, |
Material costs |
2 |
1 |
Production costs |
2 |
1 |
Overhead |
2 |
1 |
If you define a source structure, you can specify how the costs for each cost element group are apportioned. This allows you to account for the fact that the material usage for the first co-product, for example, is significantly higher than that for the second co-product even though the production costs for both products are the same.
Example for Cost Apportionment in Joint Production with a Source Structure
Source Assignment |
Equivalence Number, |
Equivalence Number, |
Material costs |
2 |
1 |
Production costs |
3 |
1 |
Overhead |
1 |
1 |