Here you define the
cost object categories for cost object IDs for cost object IDs that can be assigned to a cost object hierarchy as cost object nodes . The cost object category category contains central definitions regarding what functions are active for the cost object hierarchy and how period-end closing is carried out.
You assign a cost object profile to the cost object category.
You specify whether the following functions are allowed for the cost object IDs of this cost object category:
If you intend to distribute the costs collected at the level of the hierarchy to the assigned orders or production cost collectors, then you should not set the Variances indicator for the cost object category. The variances are calculated after distribution for each order instead. You still calculate the variances during the period-end closing activities for the cost object hierarchy.
You specify which of the following objects can be assigned to the lowest levels of the cost object hierarchy:
The system selects the orders and production cost collectors that belong to the cost object hierarchy through the specified material (or material and production version). You can assign production orders and process orders to the cost object hierarchy. All orders and production cost collectors assigned to a cost object hierarchy must be settled by period. The variances for the orders and production cost collectors assigned to a cost object hierarchy are calculated for the cost object hierarchy as a whole.
If you want to assign only certain orders for the material to the cost object hierarchy, you can specify this with the indicator Control through variance key. You can then control in the order itself the order belongs to the hierarchy or not. If you want to treat the order as an independent entity, specify a variance key in the order. The order is then not longer selected for variance calculatioin for the cost object hierarchy. Instead, it is selected in variance calculation for the corresponding orders in the Product Cost by Order component or in the Product Cost by Period component. The order is then settled during the order settlement process. If you want to assign all orders for a material to the cost object hieararchy, set the indicator Always cost object hierarchy.
The cost object catagory also determines which method is used to settle the price differences for cost object hierarchies without actual cost distribution. You can do the following:
You determine what method can be used to manufacture the materials assigned to the cost object hierarchy. This enables you to determine the following:
Variance calculation and settlement for all orders assigned to a cost object hierarchy must be carried out by period. Periodic settlement is normally defined as the default rule for each order type at plant level.
Check the default rule for periodic settlement:
Check default values for order types
If you want to define you own cost object profiles, you must first carry out the step Define cost object profiles for cost object hierarchies bearbeitet haben.
The standard system contains predefined cost object categories.
If you want to work with a cost object hierarchy, you should also check whether the Cost objects indicator is set for each fiscal year in the controlling area.
Maintain controlling area