What does Auxiliary Cost component work for?

[former_member599472]

Dear,

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

BR

John

[Former Member]

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

[rajneesh_saxena]

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

[pavan_kumar18]

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