1. Objective and Scope

1.1. Objective of this Operation

The purpose of this procedure is to explain how to maintain a hierarchy of cost elements in SAP. 

The objective of the operation is to anticipate problems during the closure following the creation of new GL accounts. The control has to be done on D-4hierarchies of cost elements are important in

• the costing model: they are used in assessment cycles
• in the reporting: they are used in fixed costs reports & Co$ta

There are 2 core hierarchies to be maintained carefully:

• XCS-ALL is used to split variable / fixed / depreciation cost elements in PF2 & WP2. It is also used in the assessment cycles of some cost centers in PF2 and in the reporting IMEP.
• ZRCS-FC is used in assessment cycles in PF2 & WP2 and in fixed costs reports & Co$ta.

                      From 01 Jan 2022 it is replaced by the hierarchy ZSOLV and ZRCS-FC will not be maintained anymore.

When you change one of these cost elements hierarchies, you must carefully follow the following rules: 

1. A cost element hierarchy needs to be maintained in WP2 & PF2. For instance if you do a change in the hierarchy in WP2, you have to do it in PF2 (or vice versa). 
2. All cost elements should be included in the core hierarchies
3. A hierarchy is unique. A cost element can not be included in 2 groups (even if SAP does not prevent you from doing it). There are 10 exceptions in the hierarchy XCS-ALL in WP2 (no new exceptions are accepted without prior validation by a costing expert)
4. There is a standard number of levels in each core hierarchy, do not create new ones. 
5. All cost elements should be included in the lowest group. 

1.2. Scope

All entities in WP1WP2 & PF1PF2

2. Definitions

See Finance - Glossary

3. Tasks description

3.1. I

update the cost element hierarchy

3.2.

 I communicate that the cost element hierarchy has been

updated