Splitting a cost component to multiple cost components?

[former_member223941]

Hi SAP Experts

I have a scenario where the requirement is as below:

We would like to allocate manufacturing activity cost, which is based on the machine hours, to the product. However, we have six kinds of manufacturing activity costs. Each one of the six costs is related to the machine hours with a different rate, and all of them are cost components in our cost component structure.

The business requirement is to reduce the number of Activity types used in the routing. Therefore, we're looking for a way to split costs from the Machine hours cost component to all the six manufacturing cost components.

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Diagnostic:

I have already searched some solution which might help us in this requirement, but i found an idea to use The primary cost component split.

Im not really sure how can i accomplish the requirements, but i executed the below steps:

(1) Created a cost component structure (Z1) for all product costs (Material costs, Machine hours .....and so on)

(2) Created a cost Component Structure (Z2) for the manufactured cost components

(3) Created transfer assignment. I assigned the Machine Hours cost component to the manufacturing cost components

Im still not sure how can we determine the splitting since we have no activity types for manufacturing activity in the routing. Although that i heard about something called the splitting rule, but i dont see how can this help me in achieving my goal.

Please answer as much detail as you can

Regards

[ajaycwa1981 · Accepted solution]

Hi

You need to assign Z2 in the Plan version 0 in OKEQ

What ytou want is a break up of the Machine Activity cost.. for that you need to assign Z2 in Version 0

You can see a break up of Machine activity cost separately. however, in Z1, this machine cost will still be reflected in one cost component only

br, Ajay M

[former_member223941 · Accepted solution]

Hi Ajay

Thank you for your respond.

May be i havent mentioned that I already assigned the Z2 to the version but I already did that.

My question is how am i gonna get the break up in the six manufacturing cost components in Z2?

What is the basis for the break up? Do I have to create six activity types and assign them to the routing ?

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Again The Machine Hours is an activity in the routing and based on this machine hours there are six other manufacturing costs. I would like to show these costs in the cost component structure with adding six more activity types in the routing. I dont want to add those costs via costing sheet nor additive cost.

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Please explain your answer with as much detail as you can

I appreciate  you response and looking forward for your reply again.

Regards

Ahmed

[former_member223941 · Accepted solution]

Hi Fellow SAP Experts

No one knows how to configure Primary Cost split up here!

Please those who dealt with this issue before help.

The Business Scenario again:

As of now, i need some help with primary cost component split. Where I have two cost types (Depreciation, and Maintenance cost). Those two costs are dependent to the machine hour activity and the Total Depreciation and Maintenance Cost.

For example we have consumed a total 20 Hrs (Machine HRs). 12 Hrs for Material X, and 8 HRs for Material Y.  and we also have for this month 300 $ for Depreciation cost and 100$ for Maintenance Cost.

How can we post the depreciation and maintenance cost compoenents for each material, to be as below:

Depreciation per hour: 300/20= 15 $

Machine Maintenance Per Hour= 100/20= 5 $

Material X:

Deprciation cost compoenent: 12 HRs * 15 =  180 $

Maintenance Cost Component: 12 Hrs * 5= 60 $

For Material Y:

Deprciation cost compoenent: 8 HRs * 15 =  120 $

Maintenance Cost Component: 8 Hrs * 5= 40 $

I am not sure how to start the configuration, but i created an activity type for machine hours and assigned it to the materials. Also i have created two cost component structures (Z1, Z2), one has the depreciation and maintenance cost components  assigned to primary cost element (Z1) and another with secondary cost element (Z2). Then I have checked Z1 as primary cost component structure and assigned to the planning version.

After doing all that i was not able to show the splitting.

PLEASE BE DETAILED AS MUCH AS YOU CAN

[Former Member · Accepted solution]

Hi Ahmed,

The configuration is very simple to active the primary cost component split.

You just have to active the the main Cost component structure as Primary Cost Component Split. Additionally, you must to configure the primary and second cost elements for each Cost Component in OKTZ. The SAP will track the original postings in the primary cost from the auxiliaries cost centers (receivers from assessment cycles) to compose the Unit Price - KSII - Price Calculation  (for the Production cost centers).

All the steps are the same when you work without Primary Cost Component Split.

You dont need to work with a Auxiliary Cost Component Structure. It is used just to organize the Cost Elements in a Diferent Way, not to apply different rules to both Structures.

BR,

RK

[rajneesh_saxena · Accepted solution]

Dear Ahmed

Define two activities for Depreciation and Machine and assign it to routings with required quantities. Set two different Cost components for Depreciation and Machine assign Secondary cost elements to them. Hope you will get desired results.

Regards

Rajneesh Saxena

[former_member223941 · Accepted solution]

Rajneesh
Thank you so much for your answer.

Your answer is really helpful, but this will lead us to create an activity type for every cost types (Depreciation, and Machine maintenance) in the routing.

The idea is to reduce the number of activity type in the routing.

[ajaycwa1981 · Accepted solution]

Hi Ahmed

What you have explained above as an example - is best addressed using 2 act types.. There is another option as well.. I will explain both

1) Activate "Act Type" as Aux Account assignment object in OKKP (Activate comp and Control indicators)

Assign the Mach Hr Act Type in asset master and allow the Act Type in the FSG of dep account. With this, your depreciation will become activity dependant cost... During act price calculation it gets auto assigned to Mach Hr Act Type

You have another act type for Maintenance cost (Replica of Mach hr Act Type).. Map the Maintenance cost elements to this act type in SPlitting Structure in OKEW and OKES

Now, you calculate act price.. Ensure that 2 cost comp are there in OKTZ, as said by Rajneesh

2) Have only one act type as explained above for Mach Hr

Absorb the maintenance cost as an overhead using costing sheet, on the basis of the Machine hrs.. That way, you will save an act type. Use Qty based overheads, instead of % based overheads in Costing sheet

Br, Ajay M

[former_member223941 · Accepted solution]

Rudi Kokubo

Thank you for your reply,

I guess you've just touched exactly what i am looking for.

Can you please answer the below questions.

What is the cost element for Depreciation and Machine Maintenance cost components in Z1 and Z2 Structure?? (Primary Cost Element or assessment cost element??

When in the process i should use KSII??

Do I have to plan (KP26) the depreciation and maintenance cost centers to the machine hours activity type?

Thank you again