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Re: What does Auxiliary Cost component work for?

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Hi

 

I will say the reverse of what Pavan said.

 

Aux CCS is used to concise the view of your main CCS. Say in main CCS you have 20 cost components which are needed for your business analysis but for management reporting purpose you need only the gist of it hence such detail is not required.

 

In this case you can create an Aux CCS and can assign cost components of your main CCS to the cosst components of your Aux CCS in many is to one relation. i.e. you may be interested in showing sum of 4 cost components in  one single cost component for management reporting. For more clear picture see below example:

 

Cost Comp                         Main CCS                    Cost Comp                    Aux CCS

 

   10                                 Raw Material                    10                                 Materials

   20                                 Process Material              10  

  

   30                                 Direct Wages                   20                                Direct Expenses

   40                                 Direct OHs                       20   

  

   50                                 Machine Maintenance      30                                 Machine Exp

   60                                 Depreciaation                  30                         

   70                                 AMC on machine             30

  

 

However what Pavan has said, we can use Aux CCS in that way also. but the purpose is this what is given above. 

 

Regards

 

Rajneesh Saxena


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