Define Cost Element
Explanation
Use this activity to enter and maintain user-defined cost elements to be used
within the system. This is the only way to create user-defined overhead costs.
A cost element corresponds to a cost-generating item, e.g., material cost,
work center cost, or labor cost. Cost elements define the lowest level of cost
collection detail and are used to allocate costs that are not driven by
activities. A
number of system-generated cost elements are already connected to costs and
drivers of costs throughout the system. This activity allows you to connect cost
elements to cost buckets.
This activity can be performed in the
Cost Elements,
Costing Basic Data/Overhead Cost Definition,
and
Overhead Cost
Assistant windows.
Prerequisites
This activity has no specific prerequisites.
System Effects
As a result of this activity:
- The defined cost elements can be connected to and accessed from cost buckets.
- Depending on which overhead type is chosen, the overhead cost will be attributed
differently and transferred to WIP (Work in Progress), if the final carrier of cost is the base of a shop
order, at a different time.
- Setting the overhead type to Material Overhead
causes the cost from this element to
be listed in WIP when issuing the material. It will also be handled as material overhead in
the cost build-up.
Window
Cost Elements
Costing Basic Data
Overhead Cost Assistant
Related Window Descriptions
Cost Elements
Costing Basic Data
Costing Basic Data/Overhead Cost Definition
Overhead Cost Assistant
Procedure
To perform this activity in the
Cost Elements
window, follow these steps:
- Open the Cost Elements window.
- Create a new record.
- In the Cost Element ID field, enter up to five alphanumeric characters for the cost
element ID.
- In the Element Description field, enter a description of the element.
- To use a predefined cost element as a source, select the new element's source
from the List of Values in the Source Element field. The source description
is populated.
- In the Element Factor field, change the default (100.00%) if desired. This
is used if you selected a predefined cost element in the Source Element
field and defines the percent of the source's costs to be absorbed by the
new cost element. This field is mandatory if you used another cost element
as a source.
Note: For cost elements where source element is
601,501,502 and 141, the element factor will be 100% and not possible to
change.
- If you have not based your new element on a source, you can enter a fixed cost
that should be absorbed by the cost element in the
Element Fixed Cost field.
- In the Overhead Type list, click the overhead cost type to use for the
user-defined element. This decides the posting type and event used for the
overhead cost.
Note: For elements where source element is 601,
the allowed overhead type will be Sales Overhead, and
When source element is 501 the allowed overhead type will be Material
Overhead, and
When source element is 502 the allowed overhead type will be General
Overhead, and
When source element is 141 the allowed overhead type will be Delivery
Overhead.
- Save the changes.
In the
Costing Basic Data/Overhead Cost Definition
window:
- Open the Costing Basic Data window and click
the
Overhead Cost Definition tab.
- Create a new record.
- In the Cost Element ID field, enter up to five alphanumeric characters for the cost
element ID.
- In the Description field, enter a description of the element.
- In the Overhead Type list, click the overhead cost type.
Note: For elements where Source element is 601,
the allowed overhead type will be Sales Overhead, and
When source element is 501 the allowed overhead type will be Material
Overhead, and
When source element is 502 the allowed overhead type will be General
Overhead, and
When source element is 141 the allowed overhead type will be Delivery
Overhead.
- To use a predefined cost element as a source, select the new element's source
from the List of Values in the Source Element
field. The
source description
is populated.
- In the Element Factor field, change the default (100.00%) if desired. This
is used if you selected a predefined cost element in the Source Element
field and defines the percent of the source's costs to be absorbed by the
new cost element. This field is mandatory if you used another cost
element as a source.
Note: For cost elements where source element is
601,501,502 & 141, the element factor will be 100% and not possible to
change.
- If you have not based your new element on a source, you can enter a fixed cost in the
Element Fixed Cost field. This decides the posting type and event used for
the overhead cost.
- Save the changes.
To perform this activity in the Overhead Cost
Assistant
window, follow these steps:
- Open the Overhead Cost Assistant window.
- In the Site list, click the site to which you want to connect the cost
element. The description is populated.
- In the Cost Element ID field, enter the ID of the cost element. The
description is populated.
- Click Next.
- From the Overhead Type list, select the type of overhead cost you want to use. The
associated posting type will be given automatically.
Note: If the overhead type is Sales Overhead, only the cost
elements 500 and 601 will be available as source elements.
- Click Next.
Note: For elements where source element is 601,
the allowed overhead type will be Sales Overhead, and
When source element is 501 the allowed overhead type will be Material
Overhead, and
When source element is 502 the allowed overhead type will be General
Overhead, and
When source element is 141 the allowed overhead type will be Delivery
Overhead.
For cost elements where source element is 601,501,502 & 141, the element
factor will be 100% and not possible to change.
- Specify whether you want to use a fixed cost or a factor by clicking the
relevant option.. To work with a fixed cost, specify the cost in the
field to the right of the Use Fixed Cost option. If you create a fixed overhead and specify Unit as
overhead cost
relation, the system does not have to divide by lot size. To work with a
percentage factor of a source element, specify a percentage value in the field
to the right of the Use Factor option. You also have to specify, in the
Source
Element ID
field, the cost element to use as a source. You can click List to
select from available source elements.
- Click Next.
- Check the information you have entered to make sure everything is correct,
then click Next.
- Select whether you want to assign the cost element you are creating to cost templates
right away or later. If you select to assign the element to one or more cost templates,
you specify the templates in the Cost Template ID field.
- Click Finish to create the cost element.