Responsibility Area & Process

These operations applies to all personnel in the SBS-SC entity who are involved in the processing of the product costing operations.

Finance site (and SIS if necessary) is involved when errors during the processing cannot be solved by SBS-SC.

SBS-SC is running the various transactions regarding the product costing and carries out the intermediate outcome checks.

In case of blocking errors, the corresponding corrections should be performed by SBS-SC people. If an error cannot be solved by them, it must be done by the finance site (or, if needed, by IS) after communication.

The flow of the product costing is composed of a series of standard transactions which are interconnected. This requires the processing in a certain sequence. The procedure starts in the cost center accounting referring to so-called production cost centers. Defined activity types are assigned to these cost centers. For the daily movements the activity prices are valuated at standard cost. In the closing of the product costing they will be revaluated at actual prices. The differences are credited on the production cost centers and debited on the production cost collectors, managed in the cost object hierarchy.

The procedure continues with the distribution of postings of actual costs on the cost object level to the assigned cost collectors.

All categories of variances between target costs and actual costs, like price and quantity variances in raw and packaging materials, same for consumed activities are calculated within the cost object hierarchy and posted on cost collectors. As the cost collectors are a certain kind of order, they must be settled at the end of the period.

Intermediate checks take place in order to look at the ‘zero’ balance of the cost accounting objects involved.

In a few businesses, production orders are used instead of cost collectors (because of a different use of PP), a few differences in the transactions appear, as mentioned in the list of activities (OP.064).

Operating procedures

Local procedures