Enabling Cost Components for Detailed Analysis of Inventory-Related G/L Accounts

Cost components break down the costs of a material across the entire production structure into material costs, production costs, material overhead, production overhead, and other costs. However, this breakdown has not been available in the General Ledger before SAP S/4HANA. By utilizing a Custom Enhancement, the Cost Component Split by G/L Account can be available in the ECC system as well. This will provide suitable transparency about cost drivers in the General Ledger, particularly for companies that do not plan an S/4 conversion for a few years, and also positions them with a Splitting Structure that is compatible for an eventual S/4 Conversion. This functionality can be used to split cost components for COGS accounts as well as Inventory accounts and Production Variances, among others. Also, this functionality can be used whether a company uses Material Ledger or not.



Watch this recorded webcast with Controlling expert Rogerio Faleiros to learn:


Splitting of COGS Accounts based on cost component split.
Splitting of Ending Inventory based on cost component split.
Customizing of accounts and posting scenarios.
Enhancement of program to include Cost Component split for other accounts, such as Scrap, Consumption, Production Variance, etc.
Viewing Enhanced Drilldown Reports for Product Costing and Material Ledger