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Splitting a cost component to multiple cost components?

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

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  • Best Answer
    Posted on Nov 25, 2013 at 04:22 AM

    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

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    • Former Member Former Member

      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

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