SAP Note 164488 - Multilevel actual costing and cost object hierarchy

Component : Multilevel Actual Costing - Product Cost by Period

Solution : https://service.sap.com/sap/support/notes/164488 (SAP Service marketplace login required)

Summary :
In this SAP Note, the focus is on the limitations of multilevel actual costing when utilized in conjunction with a cost object hierarchy. Users encountering issues where price variances are not fully transferred during multilevel actual costing need to be aware of the process mechanics. Specifically, when materials are extracted for use at higher-level nodes in the hierarchy and distributed during periodic settlement, these variances are not forwarded. The exemplified scenario illustrates ROH material being allocated on a higher node and divided among production orders as secondary costs without original material documents, thereby preventing variance forwarding at the multilevel actual costing stage.

Key words :
material finish     line 1                          line 2in, actual cost distribution reason, higher-level node k1, cost object distribution function, cost object hierarchy consumption, production orders                production orders, higher-level node, higher node k1, cost object hierarchy, product cost collectors

Related Notes :

398143INFO: CO-PC-ACT (period-end closing)