Define Source Structure

Note on Costing

You only need a source structure for costing co-products if you want to distribute the costs to the co-products using cost elements.

If you don't want to distribute the costs using cost elements, the costs will be distributed on the basis of the apportionment structure in the material master record. In this case you do not have to process this step.

Source structure

In this step you define the source structures used when settling and costing joint products.

A source structure contains several original assignments, each of which contains the individual cost elements or cost element intervals to be settled using the same distribution rules.

In the settlement rule for the sender you can define one distribution rule, in which you specify the distribution and receivers for the costs for each original assignment.


The object in question has incurred both direct and overhead costs. The direct costs are to be divided 50% each between a fixed asset and a cost center, while the overhead is to be settled in full to an administration cost center in CO.

To do this, you would create a source structure with two original assignments:

1. Direct cost elements
2. Overhead cost elements


Check whether you need to use source structures in your settlement procedures. If you are settling to cost elements, you do not need an source structure. Otherwise, to create a source structure:

1. Choose New entries, then enter a key and an explanatory text. Save your structure and choose "Back".
2. Select the structure you have just created and choose Detail.
3. Choose New entries and create an original assignment. Save the assignment and choose Back .
4. Place the cursor on the entry you have just created, choose Origin and enter the appropriate cost elements, cost element intervals, or cost element groups.
Save your entries.
5. Repeat steps (3) and (4) to create further original assignments.

Further notes

For more information, see the R/3 Library under "Controlling -> Internal Orders -> CO Settlement" "CO Settlement".

Further notes

The quantity structure of the material is determined by means of entries in the material master record. If none of these entries exists, the quantity structure is determined by means of the quantity structure determinaton ID specified in the costing variant.

For more information on costing co-products (such as quantity structure determination), see the document CO Product Cost Planning in the R/3 Library.