SAP Cost Component Groups: OKTZ Setup and Reporting

By John Jordan

SAP cost component groups let you summarize cost components and display the resulting amounts in cost estimate reports. They help you compare material, labor, and overhead costs across a range of products without examining each material cost estimate separately.

In this guide, I explain how to create cost component groups in transaction OKTZ, assign them to cost components, and add the group columns to a classic SAP cost estimate report.

Table of Contents

• What Are Cost Component Groups?
• Step 1: Create Cost Component Groups
• Step 2: Assign Groups to Cost Components
• Step 3: Add Groups to Report Columns
• Common Configuration Issues
• Conclusion
• Glossary
• Reference Materials

What Are Cost Component Groups?

A cost component groups costs by cost element, with origin groups where applicable. Typical components include raw materials, packaging, labor, and production overhead. A cost component group combines selected components into a reporting total.

You can use two group assignments, cost component group 1 and cost component group 2, to provide alternative aggregations. For example, one grouping can keep raw materials and packaging separate, while the other combines both as Total Material. Group 2 is an alternative grouping; it does not automatically create a parent-child hierarchy.

The steps below describe the classic SAP GUI configuration and reporting approach. Report fields and menus can vary by release and deployment. For background on the costing results being summarized, see SAP cost estimates and procurement type.

Step 1: Create Cost Component Groups

Open transaction OKTZ, or follow this IMG menu path:

Controlling → Product Cost Controlling → Product Cost Planning → Basic Settings for Material Costing → Define Cost Component Structure

1. Select the relevant cost component structure.
2. Open Cost Component Groups in the navigation area.
3. Choose New Entries.
4. Enter the group keys and meaningful descriptions needed for your reporting design.
5. Confirm the entries and save them.

Agree on the report totals before defining the groups. If users need both purchased-material detail and a combined material total, create groups that support both views.

Step 2: Assign Groups to Cost Components

1. Open Cost Components with Attributes.
2. Select a cost component and open its detail screen.
3. In Cost Summarization, enter the required assignments for cost component group 1 and cost component group 2.
4. Repeat for the other cost components and save.

Table 1 shows an example of separate material categories in group 1 and a combined material total in group 2. The descriptions illustrate the reporting design; use the group keys defined in your system.

Table 1: Example Cost Component Group Assignments

For example, raw material costs of $60 and packaging costs of $10 would contribute $70 to Total Material in group 2. This summarizes the same costs; it does not add another $70 to the cost estimate.

Step 3: Add Groups to Report Columns

Run a cost estimate list report, such as S_P99_41000111 (Analyze/Compare Cost Estimates), using a representative selection of materials and cost estimates.

1. Choose Change Layout in the results list.
2. Move the required cost component group columns from the available columns into the displayed columns.
3. Arrange the columns and confirm the layout.
4. Save the layout if you want to reuse it.
5. Compare the reported group amounts with the component values in an individual cost estimate.

Where the report offers a group selection, choose the appropriate grouping. SAP’s summarized costing-run analysis documentation describes selecting group 1 or group 2 through Extras → Activate cost component group. Also check the cost component view, because it affects the groups and values displayed.

Common Configuration Issues

If the report does not show the expected totals, check the following:

• Missing group columns: Review the available layout fields, selected grouping, and report variant.
• Incomplete material totals: Confirm that every relevant material cost component has the intended group assignment.
• Unexpected amounts: Check the cost component view, currency, costing selection, and fixed-versus-total cost fields.
• Confusing comparisons: Compare the same grouping and valuation scope across the selected estimates.

When a change also affects the underlying cost component structure, review the implications separately. See How to Change the Cost Component Structure with SAP Material Ledger Active.

Conclusion

Cost component groups connect detailed Product Costing information with the totals users need in list reports. Define the groups, assign them consistently in OKTZ, and select the appropriate report columns and cost component view. Validate the result against an individual cost estimate before using the layout for broader analysis.

Need clearer Product Costing reports? Work with ERPCorp to review your cost component design, costing configuration, and reporting requirements.

Continue learning: Explore John Jordan’s SAP Product Costing books and ERPCorp membership for SAP Controlling conference recordings and technical learning resources.

Glossary

Cost Component: A grouping of costs by cost element, with origin groups where applicable.

Cost Component Group: A reporting aggregation of selected cost components.

Cost Component Structure: The configuration that defines cost components and the assignment of costs to them.

Cost Component View: A selection of costing information for a purpose such as cost of goods manufactured or inventory valuation.

Layout: The selection and arrangement of columns in an SAP report.

OKTZ: The classic SAP GUI transaction for maintaining the cost component structure and related settings.

Reference Materials

• SAP Help: Cost Component Group 2 — alternative groupings for cost component aggregation.
• SAP Help: Summarized Analysis: Costing Run — group selection, layouts, and available information.