Define Origin Groups

Here you can create origin groups. These groups serve to further subdivide the material costs. Account determination assigns each material to a G/L account and thus also to a primary cost element.

You can do the following for each cost element and origin group:

If you have maintained origin groups for the raw materials, you can define a calculation base in the costing sheet for each group of raw materials. This enables you to define different overhead surcharges for each group of raw materials.
If you have maintained origin groups for the raw materials, you can create separate cost components for important materials or groups of materials.
Variances are calculated for each cost element. If you have maintained origin groups for the materials used, the variances (such as input price variances and input quantity variances) will be calculated not only for the relevant material cost element but also for each origin group assigned to that cost element.
For each cost element, you can define whether the work in process for those costs can be capitalized in the balance sheet. If you have maintained origin groups for the materials used, then you can specify this separately for each origin group.

Requirements

You must already have completely created a controlling area.

Actions

1. Enter the controlling area.
2. Choose New entries.
3. Define your origin groups by entering a key and an appropriate text.
4. Save your entries.