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Re: What does Auxiliary Cost component work for?

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Hi John,

 

Auxiliary Cost Component structure is used to see the primary cost components in cost analysis. Usually, in CK11N we can see only activity cost.

 

Assume we have three GL accounts

 

Depreciation = $100

Electricity = $50

Wages = $120

 

 

Assume we have two activities Machinery and Labor.

 

Here, Dep and Elec cost primary cost elements are used as Machinery Activity and Wages cost element is used as Labor activity.

 

According to the above, when you check the cost analysis Machinery cost = $150 and Labor activity = $120.

 

The above described is a common scenario and when the user wants to see the actual cost spending with cost elements Dep, Ele, and Wages instead of activities Machinery and Labor.

 

For this, we need to activate auxiliary cost component structure and maintain the same in Version under  Price calculation tab.

 

 

BR, Srinivas Salpala


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