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What does Auxiliary Cost component work for?

Dear,

Could anyone tell me how the auxiliary cost component work for? Can any expert give a example? thank you very much.

BR

John

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3 Answers

  • Posted on Jul 19, 2014 at 04:32 AM

    Dear John,

    Please find the below screen shot:

    Auxiliary cost component structure provides an additional break up for main cost component structure.

    You need to activate both main & auxiliary cost component structures in OKTZ.

    Regards,

    Pavan Kumar Arvapally


    a.jpg (87.8 kB)
    c.jpg (85.3 kB)
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  • Posted on Jul 19, 2014 at 05:08 AM

    Hi

    I will say the reverse of what Pavan said.

    Aux CCS is used to concise the view of your main CCS. Say in main CCS you have 20 cost components which are needed for your business analysis but for management reporting purpose you need only the gist of it hence such detail is not required.

    In this case you can create an Aux CCS and can assign cost components of your main CCS to the cosst components of your Aux CCS in many is to one relation. i.e. you may be interested in showing sum of 4 cost components in one single cost component for management reporting. For more clear picture see below example:

    Cost Comp Main CCS Cost Comp Aux CCS

    10 Raw Material 10 Materials

    20 Process Material 10

    30 Direct Wages 20 Direct Expenses

    40 Direct OHs 20

    50 Machine Maintenance 30 Machine Exp

    60 Depreciaation 30

    70 AMC on machine 30

    However what Pavan has said, we can use Aux CCS in that way also. but the purpose is this what is given above.

    Regards

    Rajneesh Saxena

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  • Posted on Jul 20, 2014 at 06:48 AM

    Hi John,

    Auxiliary Cost Component structure is used to see the primary cost components in cost analysis. Usually, in CK11N we can see only activity cost.

    Assume we have three GL accounts

    Depreciation = $100

    Electricity = $50

    Wages = $120

    Assume we have two activities Machinery and Labor.

    Here, Dep and Elec cost primary cost elements are used as Machinery Activity and Wages cost element is used as Labor activity.

    According to the above, when you check the cost analysis Machinery cost = $150 and Labor activity = $120.

    The above described is a common scenario and when the user wants to see the actual cost spending with cost elements Dep, Ele, and Wages instead of activities Machinery and Labor.

    For this, we need to activate auxiliary cost component structure and maintain the same in Version under Price calculation tab.

    BR, Srinivas Salpala

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