Cost Object Hierarchy
Definition
A cost object hierarchy is a hierarchy consisting of cost object nodes.
Use
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.
Structure
A cost object hierarchy consists of cost object nodes to which the following can be assigned:
Material / plant
Material/plant/production process
Note
Starting in Release 4.5A you can define a cost object hierarchy for a combination of material and plant, or for a combination of 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:
Material / plant
Material / plant / production version
Material / plant / run schedule header
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.
Integration
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.
More Information
See the following sections of the documentation Cost Object Controlling
:
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 Product Cost Controlling Information System
:
Cost Object Hierarchies in the Information System
Collecting Data for a Cost Object Hierarchy