Can someone brief what is cost component split? What config is to be done?
In addition to standard iteration, price calculation enables you to calculate
prices as a cost component split. This means that the output price of an
activity type can be split into a maximum of 40 cost components. These cost
components represent either:
Individual cost components (such as wages, salaries, or operating supplies)
or the costs of complete cost centers (such as energy or maintenance cost
centers).
The cost component split enables you to analyze which cost components are
contained in the output prices of the activity types.
You can then control cost elements, cost element groups, and also entire cost
centers in cost component splits. The corresponding cost center costs and the
costs of the cost centers providing the activity are channeled into this cost
component split. For example, if you have assigned the salary cost element to
component 1 (salaries), then the system displays the salaries (for example, for
a production cost center) in this cost component. If a plant maintenance cost
center provides services to the production center, then the salaries for the
plant maintenance cost center are assigned to this cost component.
Cost center splitting apportions activity independent costs to the activity
types of the cost center. It does this by multiplying the total of the activity
independent costs by the equivalence number of the activity type, and then
dividing by the sum of the equivalence numbers. So if there are two activities,
one with equivalence number 1 and the second activity has an eqivalence number
of 2, then 1/3 of the activity independent costs will be apportioned to activity
one, and 2/3 will be apportioned to activity two.
Activity independent costs are always fixed, so any variable costs will need
to be planned as activity dependent costs.
Planned cost center splitting happens automatically when calculating the
activity price. You can view what costs will be apportioned during activity
price calculation by clicking on the Splitting menu item.
I've ran cost splitting against one cost centre. For this cost centre I
know the planned activity rate (per hour) and the planned quantity (in hours)
but the target cost calculated for the activity is slightly different to the
result of these two multiplied together.
Is this calculation correct please?
Planned act. qty in period @ planned act. rate for period = target costs
If you have only one Activity for the cost center, then you do not need to
run splitting. Just run activity price calculation. Splitting is required only
if you are allocating the same costs to 2 or more activities.
The calculation is generally right. The other thing to check will be
rounding of the time (mins/hours) and value.
