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<ManualTopic ID="/baanerp/ti/onlinemanual/000080" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Cost components</Title>
		<Keyword><Level1>Cost components</Level1>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph>Cost components are used to break down calculated prices into components that are meaningful to the user. In other words, cost components offer a user-defined cost structure of cost prices, sales prices, and valuation prices.</Paragraph>
		<List><ListIntro>Cost components are also used for the following purposes:</ListIntro>
			<ListItem>To compare estimated and actual production order costs.</ListItem>
			<ListItem>To express production variances.</ListItem>
		</List>
		<Paragraph>Cost component codes are defined in the <GUIRef href="/baanerp/tc/mcs/tcmcs0148m000" role="session">Cost Components (tcmcs0148m000)</GUIRef> session, and assigned to one of the following cost types:</Paragraph>
		<List><ListItem><GUIRef href="/baanerp/tc/domains/cref#material" role="enum">Material Costs</GUIRef>
			</ListItem>
			<ListItem><GUIRef href="/baanerp/tc/domains/cref#operation" role="enum">Operation Costs</GUIRef>
			</ListItem>
			<ListItem><GUIRef href="/baanerp/tc/domains/cref#chg.material" role="enum">Surcharge on Material Costs</GUIRef>
			</ListItem>
			<ListItem><GUIRef href="/baanerp/tc/domains/cref#chg.operation" role="enum">Surcharge on Operation Costs</GUIRef>
			</ListItem>
			<ListItem><GUIRef href="/baanerp/tc/domains/cref#transfer" role="enum">WIP Transfer Costs</GUIRef>
			</ListItem>
			<ListItem><GUIRef href="/baanerp/tc/domains/cref#general" role="enum">General Costs</GUIRef>
			</ListItem>
			<ListItem><GUIRef href="/baanerp/tc/domains/cref#not.appl" role="enum">Not Applicable</GUIRef>
			</ListItem>
		</List>
		<Paragraph>You must link a cost component of the applicable costing type to everything in SSA ERP that is accountable for costs: materials, operations, surcharges, labor, and so on.</Paragraph>
		<GeneralSection><SectionTitle>Cost component structure</SectionTitle>
			<Paragraph>In the cost component structure, you determine how a price is broken down. You can choose to break down the costs for every cost component in SSA ERP. You can also aggregate the costs on the three cost components defined in the <GUIRef href="/baanerp/ti/cpr/ticpr0107m000" role="session">Items - Costing (ticpr0107m000)</GUIRef> session. In other words, in the cost component structure, you can break down the price to the level of detail you want: from completely aggregated until detailed in a greater or less degree.</Paragraph>
		</GeneralSection>
		<GeneralSection><SectionTitle>To set up a cost component structure: aggregated costs</SectionTitle>
			<Paragraph>In the <GUIRef href="/baanerp/ti/cpr/ticpr0107m000" role="session">Items - Costing (ticpr0107m000)</GUIRef> session you must define three aggregated cost components for an item. The aggregated cost components are associated with the following costs:</Paragraph>
			<List><ListItem>Material costs.</ListItem>
				<ListItem>Operation costs.</ListItem>
				<ListItem>Surcharge costs.</ListItem>
			</List>
			<List><ListIntro>If you do not enter a chart in the <GUIRef href="/baanerp/ti/cpr/ticpr0107m000#ticpr007.chrt" role="formfield">Cost Component Chart</GUIRef> field in the <GUIRef href="/baanerp/ti/cpr/ticpr0107m000" role="session">Items - Costing (ticpr0107m000)</GUIRef> session, or for <GUIRef href="/baanerp/ti/asc" role="module">Assembly Control</GUIRef> in the <GUIRef href="/baanerp/ti/cpr/ticpr0115m000" role="session">Assembly Line Costing Data (ticpr0115m000)</GUIRef> session, all costs are broken down on the aggregated cost components. This means in <GUIRef href="/baanerp/ti/sfc" role="module">Shop Floor Control</GUIRef> that if you report an order or a quantity as complete, and the items are received in the warehouse, the following happens:</ListIntro>
				<ListItem>All cost linked to cost components of the <GUIRef href="/baanerp/tc/domains/cref#material" role="enum">Material Costs</GUIRef> type are booked on the aggregated cost component for material costs.</ListItem>
				<ListItem>All cost linked to cost components of the <GUIRef href="/baanerp/tc/domains/cref#operation" role="enum">Operation Costs</GUIRef> type are booked on the aggregated cost component for operation costs.</ListItem>
				<ListItem>All cost linked to cost components of the <GUIRef href="/baanerp/tc/domains/cref#chg.material" role="enum">Surcharge on Material Costs</GUIRef> type or the <GUIRef href="/baanerp/tc/domains/cref#chg.operation" role="enum">Surcharge on Operation Costs</GUIRef> type are booked on the aggregated cost component for surcharge costs.</ListItem>
			</List>
		</GeneralSection>
		<GeneralSection><SectionTitle>To set up a cost component structure: detailed costs</SectionTitle>
			<List><ListIntro>If you want to break down your costs in a detailed way, you must, apart from the aggregated cost components, define detailed cost components in the <GUIRef href="/baanerp/ti/cpr/ticpr0110m000" role="session">Chart Details (ticpr0110m000)</GUIRef> session. The detailed cost components are linked to a chart that is defined in the <GUIRef href="/baanerp/ti/cpr/ticpr0109m000" role="session">Cost Component Charts (ticpr0109m000)</GUIRef> session. If you enter the chart with associated detailed cost components in the <GUIRef href="/baanerp/ti/cpr/ticpr0107m000#ticpr007.chrt" role="formfield">Cost Component Chart</GUIRef> field in the <GUIRef href="/baanerp/ti/cpr/ticpr0107m000" role="session">Items - Costing (ticpr0107m000)</GUIRef> session, or for <GUIRef href="/baanerp/ti/asc" role="module">Assembly Control</GUIRef> in the <GUIRef href="/baanerp/ti/cpr/ticpr0115m000" role="session">Assembly Line Costing Data (ticpr0115m000)</GUIRef> session, all costs are broken down according to the cost component structure (chart details) that you defined for the chart. This means in <GUIRef href="/baanerp/ti/sfc" role="module">Shop Floor Control</GUIRef> that if you report an order or a quantity as complete, and the items are received in the warehouse, the following happens:</ListIntro>
				<ListItem>Costs are booked to the matching cost component in the cost component structure.</ListItem>
				<ListItem>If costs were linked to a cost component in SSA ERP that does not exist in the end item's cost component structure, the costs are collected in the end item's aggregated cost component.</ListItem>
			</List>
		</GeneralSection>
		<Note><SectionTitle>Note</SectionTitle>
			<List><ListIntro>During production of a manufactured item, all costs are booked on the cost component to which the costs are linked. These cost components can differ from the cost components in the end item's cost component structure.</ListIntro>
				<ListItem>Operation costs are booked on the cost component as defined in the <GUIRef href="/baanerp/ti/cpr/ticpr1150m000" role="session">Operation Rates (ticpr1150m000)</GUIRef> session.</ListItem>
				<ListItem>Material costs are booked on the materials' cost components. You can view the cost components in the <GUIRef href="/baanerp/wh/wmd/whwmd2517m000" role="session">Item Inventory - Cost Details (whwmd2517m000)</GUIRef> session.</ListItem>
				<ListItem>Surcharges are booked on the cost component as defined in the <GUIRef href="/baanerp/ti/cpr/ticpr1110m000" role="session">Item Surcharges (ticpr1110m000)</GUIRef> session.</ListItem>
			</List>
			<Paragraph>After production, if you report an order or a quantity as complete, and the items are received in the warehouse, the costs are booked on the cost components as defined in the end item's cost component structure.</Paragraph>
		</Note>
		<Note><SectionTitle>Note</SectionTitle>
			<Paragraph>In <GUIRef href="/baanerp/ti/asc" role="module">Assembly Control</GUIRef>, a chart with detailed cost components is linked to the assembly line instead of to the end item.</Paragraph>
		</Note>
	</GeneralSection>
	<ExampleSection><SectionTitle>Example</SectionTitle>
		<Figure><HTML:IMG SRC="../images/tr_graph_TIOM000080.gif" height="212" width="525" xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40"/></Figure>
		<Paragraph>Explanation:</Paragraph>
		<Paragraph>If you defined a detailed cost component SURCH_C for component item C in the <GUIRef href="/baanerp/ti/cpr/ticpr0110m000" role="session">Chart Details (ticpr0110m000)</GUIRef> session, and you want to report the costs that are posted to that detailed cost component SURCH_C seperately for end item A, you must also define cost component SURCH_C in the chart details for end item A. If you do not define a cost component SURCH_C for item A, cost component SURCH_C will be part of item A's aggregated cost component SURCH_A. You must define the detailed cost components of an item's cost component structure in the <GUIRef href="/baanerp/ti/cpr/ticpr0110m000" role="session">Chart Details (ticpr0110m000)</GUIRef> session.</Paragraph>
	</ExampleSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/ti/onlinemanual/000093" role="manual">Aggregated cost components</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/ti/onlinemanual/000094" role="manual">Detailed cost component</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
