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Create and assign a cost behavior policy to a cost control unit

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Cost behavior is the classification of costs as either fixed or variable. A policy and the corresponding rules have to be assigned to a cost control unit for the policy to become effective. Use this procedure to create a policy and then assign the policy to a cost control unit.

Create a cost behavior hierarchy

  1. Go to Cost accounting > Dimensions > Dimension hierarchies.
  2. Click New.
  3. Click Create.
  4. In the Dimension hierarchy name field, type 'Cost behavior hierarchy'.
  5. In the Dimension field, enter or select a value.
    • Select Cost elements.
  6. Click Save.
  7. Click View hierarchy.
  8. Click New.
  9. In the Node name field, type a value.
    • Enter Fixed cost.
  10. In the tree, select 'Cost behavior hierarchy'.
  11. Click New.
  12. In the Node name field, type a value.
    • Enter Variable cost.
  13. Click Save.
  14. In the tree, select 'Cost behavior hierarchy\Fixed cost'.
  15. Click New.
  16. In the list, mark the selected row.
  17. In the From dimension member field, enter or select a value.
    • The range of dimension members can contain gaps, but the members can't overlap.
  18. In the To dimension member field, enter or select a value.
    • The range of dimension members can contain gaps, but the members can't overlap.
  19. In the tree, select 'Cost behavior hierarchy\Variable cost'.
  20. Click New.
  21. In the list, mark the selected row.
  22. In the From dimension member field, enter or select a value.
    • The range of dimension members can contain gaps, but the members can't overlap.
  23. In the To dimension member field, enter or select a value.
    • The range of dimension members can contain gaps, but the members can't overlap.
  24. Click Save.

Create the policy and rules

  1. Go to Cost accounting > Policies > Cost behavior policies.
  2. Click New.
  3. In the Policy name field, type a value.
  4. In the Cost element dimension hierarchy field, enter or select a value.
    • Select the policy hierarchy that you just created.
  5. In the Cost object dimension hierarchy field, enter or select a value.
    • Select Organization.
  6. Click Save.
  7. Click New.
  8. In the list, mark the selected row.
  9. In the Cost element dimension hierarchy node field, enter or select a value.
    • Expand the hierarchy to select Variable cost.
  10. In the Cost object dimension hierarchy node field, enter or select a value.
    • By default, the variable percentage is 100 percent.
  11. Click Policy assignments for cost control unit.
  12. Click New.
  13. In the list, mark the selected row.
  14. In the Valid from accounting date field, enter a date.
    • The rules are date-effective, and a user or the system can expire a rule if a newer version is created.
  15. In the Cost control unit field, enter or select a value.
  16. Click Save.