Basics of Standard Costing - Understanding the Cost Component Structure-Part 3

This document is in continuation of my second document Basics of SAP Standard Cost estimate- understanding costing variant-Part 2 and 3rd in the series

This document explains the Cost Component Structure (CCS) and components assigned to CCS.  Explaining various settings in background as previous part.

Cost Component Structure (CCS)
The cost component structure determines how the results of material costing are updated. The cost component structure groups the costs for each material according to cost component (such as material costs, internal activities, external activities, and overhead). If the material is used in the production of another material, the cost component split (which breaks down the costs according to material costs, internal activities, external activities, overhead, and so forth) remains in the system when the costs are rolled up.

COPA Planning

Planning is a key tool available in Profitability Analysis (COPA), which is widely used to plan for annual forecast for Profitability Plans and track the actuals against the planned figures.  Planning in Profitability Analysis allows to plan Sales, revenue and profitability data in any selected profitability segments.  The planning data can be displayed in various ways, depending on business demands. It is not a standalone component. It can not only send data to other applications but it can also receive planning data from those applications. It is also not limited by any specific time frame. The planning can be done more than one fiscal year at one or on a rolling basis. The data can also be planned by posting periods or calendar weeks. It is also possible to create and store planning data in different plan versions.

The planning framework is the main working environment for sales and profit planning. It contains all possible settings for building the planning framework. The planning can be carried out from this framework screen. MS Excel can be used as a planning screen for planning data in the SAP system. The planning framework allows for planning with or without MS Excel. The various ways in which manual planning can be executed are as under