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author's profile photo Former Member
Former Member

Cost rollups

Hi,

Can any experts help me with cost rollups. We have different cost componets under which costing results are collected. But how does each components connected in cost rollups. Like how do we know which one is the low level cost component that can to rolled up to which high level cost component. Where is the like for each cost componets for cost rollups?

Thanks,

Nivi

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 13, 2007 at 07:19 PM

    Hi,

    As you must be aware the purpose of a cost rollup is to ensure that the cost of goods manufactured (material and production costs) of all materials in a multilevel BOM are included in the cost estimate of the higher-level material. This is achieved by assigning the costs in a cost estimate to cost components.

    The cost components are established by grouping together cost elements. This provides transparency into the type of costs, such as material, activity types or overhead that comprise a product.

    And when a multilevel BOM is costed, the costs are rolled up. That is, the cost components of the cost component split are passed upwards in the hierarchy to the cost estimate of the higher-level material.

    For each material, the cost component split provides information on:

    The value added of the material (upper level).

    The costs of the subordinate materials (lower level).

    Up to 40 cost fields can be rolled up in a cost component split.

    A cost component can carry fixed and variable costs.

    Provide points if found usefull

    Thanks,

    Praveen

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    • Former Member

      Hi,

      which catagory provides details about the follwing (upper, lower levels) in the cost component split or how do we know that this cost component in a cost component sturcture is the upper level componenet and this is the lower level component,

      The value added of the material (upper level).

      The costs of the subordinate materials (lower level).

      Thanks,

      Nivi

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