Activate Cost Component Split in Controlling Area Currency

In this step you specify that the

cost components of cost estimates for materials are updated not only in the currency of the company code but also in the currency of the controlling area. This requires that the All currencies indicator be set as the control indicator for the controlling area.

If the controlling area currency is not the same as the company code currency, the following are always updated:

If you specify the company code, a

costing type, and a valuation variant in this step, the cost element itemizations will also be updated in the controlling area currency for cost estimates with these control parameters. You can then switch between the currencies in the detail screen of the material cost estimate.

For cost estimates in this company code that are carried out with other costing types or valuation variants, cost component splits are only updated in the company code currency.

If the material ledger is being used, it is possible to carry material prices in three currencies. This means that:

The cost estimate is released during material ledger settlement.

If the material ledger is not being used, the raw material prices in the company code currency are converted into the controlling area currency.

If you have specified multiple currencies for the controlling area, the activity prices for the activity types and the overhead are defined in both the controlling area currency and the company code currency.

The prices for externally processed operations and subcontracting are determined through purchasing info records . The values in the purchasing info record may have to be converted into both the company code currency and the controlling area currency.

Requirements

To be able to work with currencies, you must make the following global settings:

To check the currencies of the company code and the controlling area, you must carry out the following steps in the corporate structure:

You must also define in the controlling area that values can be carried in multiple currencies.

To define your own costing types or valuation variants, you must carry out the following steps:

Standard settings

In the standard system, updating the cost component split in a second currency is not active.

Activities

To activate updating the cost component split in a second currency, proceed as follows:

1. Choose New entries.
2. Enter a company code for for which a currency has been maintained that is not the same as the controlling area currency.
3. If necessary, enter a costing type and a valuation variant.
Note the following:
A specific entry (such as company code 0001, costing type 01, valuation variant 006) takes precedence over a generic entry (such as company code 0001, costing type 01, valuation variant blank).

Further notes

This step is only relevant if you use the functions of multiple valuation.

For more information, see the documentation Product Cost Planning in the R/3 Library.