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Definition

Specifies which costs are contained in the cost component split.

Use

You can use the cost component structure to specify that certain costs:

  • Remain visible in the cost estimate

  • Are passed on to Profitability Analysis

    Example Example

    You can define a cost component structure so that the cost estimate for a finished product shows the origin of the costs for the semifinished products and raw materials.

    End of the example.

You can define the cost component structure to have a validity period. You can specify the date from which the structure is to be valid. This means that you can use an alternative cost component structure for the cost estimate without having to change an existing structure. In addition, cost estimates that have already been saved can still be interpreted by the system.

Through the cost components that you list in the cost component structure, you specify the following:

  • Which costs are included

  • Whether the variable costs or the total costs are included

  • Whether the cost of goods manufactured or the sales and administration costs are included

  • Whether the costs for inventory valuation, tax-based inventory valuation, and commercial inventory valuation are included

    Note Note

    If you use a cost component structure in Customizing to create a primary cost component split for products, the cost component splits of the items that are relevant to costing are included in the primary cost component split. In addition to materials, internal activities and process costs can also have cost component splits.

    End of the note.

You can create cost component views on the basis of the Customizing settings for the cost components. When you display a material cost estimate, cost component views show the costing results according to different viewpoints.

Example Example

The cost component view Cost of goods sold contains all the cost components that are indicated as the cost of goods manufactured and sales and administration costs.

End of the example.

See also:

For more information, see the Implementation Guide (IMG) under   Product Cost Planning   Basic Settings for Material Costing   Define Cost Components   .