Cost Objects
You can plan costs at the material level without reference to an order.
Costing at the Material Level Without Reference to an Order
Standard costs for materials are calculated in the application component Product Cost Planning. Costing without reference to an order has the following purposes:
Calculates the costs for a product before an order to commence manufacturing is placed
Optimizes the cost of goods manufactured by comparing different cost estimates
Provides information for the following functions:
Comparisons between the cost estimate and the order (comparisons between standard costs, planned costs, and actual costs)
Variance calculation (target/actual comparison)
Contribution margin accounting
Inventory valuation
Cost Objects
Cost objects are units to which costs can be assigned according to how they were caused using the functions of Cost Object Controlling
.
The costs incurred in a company can be assigned to the following cost objects:
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You use product cost collectors in the Product Cost by Period component. You can use product cost collectors in make-to-stock production and in mass production on the basis of sales orders if you are using a valuated sales order stock in sales-order-related production.
See also: Product Cost Collectors in Sales-Order-Related Production
Cost object hierarchies and their cost object nodes
You use cost object hierarchies in
Product Cost by Period.
You can use cost object hierarchies in make-to-stock production and in sales-order-related production if you are using a valuated sales order stock.Manufacturing orders (production orders or process orders)
If you are using manufacturing orders as cost objects, you normally use the functions of the Product Cost by Order component. You can use manufacturing orders as cost objects both in make-to-stock production and in sales-order-related production.
Sales document items (items in inquiries, quotations, or sales orders) (see also: Sales Order Item That Carries Costs and Revenues)
If you are using a sales document item as a cost object, you use the functions of the Product Cost by Sales Order component.
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General cost objects can be used in the Costs for Intangible Goods and Services component.
Projects and their WBS elements
Networks
Internal orders
See also:
For information on projects, refer to the document Project System
.
For information on internal orders, refer to the document Internal Orders
.