Establishing Cost Structures

Category management administrators can set up cost components that category managers use to define the cost structure for their assigned categories. SAP Ariba Category Management includes five default cost structure components – labor, material, processing, logistics, and overhead. However, the administrator can also create additional components to meet their business needs. Category structure components can be created, edited, sorted, filtered, and deleted within the Cost Structure Components section.

To create cost structures:

1. Choose Manage Configurations.
2. Choose the Strategy and Plan tab drop-down and then choose Cost Structure Components.
3. Choose Create.
4. Enter the details for the name, description, and parent component.

In this lesson, you learned how Category Management administrators set up and manage cost components in SAP Ariba. The default cost structure components are labor, material, processing, logistics, and overhead. Administrators can also create additional components to meet specific business needs. Steps to create cost structures include choosing Manage Configurations, navigating to the Cost Structure Components, selecting Create, and entering the necessary details. Remember that components cannot be deleted if they are in use; they can only be inactivated.