• Cost Component structure are used to classify within the cost collector which cost elements are fixed, variable or Depreciation. But not only this. The level of granularity depends on the GBU election (election of Cost Component), but it has to be coherent with activity types. It links them to material ledger classification.
  • It is customized at Company level. 
  • The level of detail provided and its complexity is determined by the different types of activity types used in production CC.
  • The right design of the Splitting structure / Activity Types  is a preliminary step to have the Cost Component structure as detailed or simple as we want.

 

There are currently 12 different Cost Component Structures. The most popular one is Z1 that is a very basic one; its main purpose is to be able to split cost in VC-FC-Depr as requested by BFC

 

Each Cost component Structure can have different Cost Components elements:

Cost component  Element  is categorized as Fix or Variable / this is the base for interface to BFC

Each Cost Component element is compounded by the amount posted in the Cost collector in a given set of Cost elements

There are other cost components structure

 

ZF used by Special Chem  (Not always)

ZC  used by Soda Ash US

ZY used by Specialty Polymer (not always)

 

 

 

The cost components structure must be consistent with the splitting structure

  • The Cost Components Structure can be very detailed, but if it is not consistent with the activity type and the Splitting structure, the result won't be as detailed as expected. 
  • In this example, Fixed Costs in the production CC are only used in one activity type: ZZPROD. So we can not get more detail.