Purpose of Product Cost Planning 


You can use Product Cost Planning to do the following:


Product Cost Planning supplies the basic information for the following areas:


Use of costing results

Cost Object Controlling

Calculating the material usage costs


Valuating inward stocks


Calculation of work in process (WIP) at actual costs in Product Cost by Period.


Variance calculation (incl. scrap variances)


Results analysis

Materials Management

Material valuation (see also: Standard Cost Estimates)


Stock valuation (see also: Inventory Costing)

Profitability Analysis

Contribution margin accounting

Sales and Distribution


Product Cost Planning provides you with the following information:

Costed Multilevel BOM:

Quick overview of BOM and costs


Detailed information about the costs calculated

Cost component split:

A view of the costs broken down into cost groups, such as material costs, production costs ,and overhead costs.

You can use the Product Cost Controlling Information System (CO-PC-IS) to analyze the costing results. The following table provides an overview of the various analysis options in the Information System:

Information about Material Cost Estimates

Detailed reports

Costed Multilevel BOM

Cost Component Split

Flexible Cost Component Report

Partner Cost Component Split with Cost Component Groups

Itemization, Flexible Itemization

Costing Items, Cost Elements/Items

Cost Elements/Origin Groups, Operations/Items

Cost Element Itemization

Comparative Reports

Product Costing vs. Preliminary Costing

Cost Component Comparison

Cost Element Comparison

Analyzing the Costing Run

Results of the Costing Run

Price vs. Costing

Costing Run Variances

Information about Base Object Cost Estimates

Detailed reports

Multilevel Explosion of Base Planning Objects

Costed Multilevel BOM

Itemization, Flexible Itemization

Costing Items, Cost Elements/Items

Cost Elements/Origin Groups

Comparative Reports

Comparing Unit Cost Estimates