in controlling secondary cost element cost is considerble for financial rep

[Former Member]

in controlling secondary cost element cost is it considerble for financial reporting requirment. In controlling for pm orders based on planning in kp26 they are booking man hours activity price. when at time of confirm of the order planning converted to actual.

Client is giving activity price based on primary cost, when we plan the activity price It will double booking what we incured in primary cost. let me clarify for financial report requirment can we consider secondary cost or not

[Former Member · Accepted solution]

Hi,

Secondory cost is a re allocation of Primary cost. It should not be considered if you are considering primary cost. Secondary cost is used for analysis and should not be confused with Primary cost

Ex. Cost gets collected to cost centers, The activity is a carrier which carries cost to Process/ production order. So that doent mean that the cost is gernerated twice once you book the financial and second when you acutally allocate the cost.

In controlling we allocate the cost in a more meaningful way to get the required analysis which will support the decision.

So both the cost should not be considered

This may be useful

Regards

Shantanu

[Former Member · Accepted solution]

Dear Sudhakar,

I verified reports there is no deduction in administrative cost center but when we settle the order to production cost center it is debiting properly ......

For this purpose can we do any configuration in controlling because admini cost center cost remaining same and order cost settling to production cost center . Please explain the configuration for Order cost credit at the time confirmation to concern administrative cost center .....

How system knows administrative cost center credit concern activity cost .... Please explain the same.

thanks

srinivas