A cost object hierarchy is a hierarchy consisting of cost object nodes.
A cost object hierarchy can be used to analyze target costs, actual costs, and variances in situations where costs are not collected at the level of orders or materials.
A cost object hierarchy consists of cost object nodes to which the following can be assigned:
Starting in Release 4.5A you can define acost object hierarchy for a material/plant or for a material/plant and production process. If you were using cost object hierarchies in an earlier release, you were able to define them for the following objects:
If you have already defined a cost object hierarchy for the combination material/plant/production version or for the combination material/plant/run schedule header, then starting in Release 4.5A these are converted into a cost object hierarchy for the combination material/plant/ production process.
This assignment enables product cost collectors, manufacturing orders, and CO orders to be selected that belong to a particular cost object node.
At the level of the cost object hierarchy, price differences can be passed on to stock and from there to Financial Accounting (FI) and Profitability Analysis (CO-PA).
It is also possible to distribute the costs to the assigned orders and settle them from there.
See the following sections of the documentation Cost Object Controlling:Cost Object Nodes Basic Information on Cost Object Hierarchies Examples for Cost Object Hierarchies Settlement Rules for Cost Object Hierarchies Creation of a Cost Object Hierarchy: Scenario Creating a Cost Object Hierarchy Conversion of Cost Object Hierarchies Special Requirements in Joint Production
See the following sections of the documentation Cost Object Controlling Information System:Cost Object Hierarchies in the Information System Collecting Data for a Cost Object Hierarchy Overview of Cost Object Hierarchies Displaying/Finding Cost Object Hierarchies