Product Cost Collector 
Description
You can decide whether costs that are incurred for a production order
are collected on the production order or a product cost collector (see
cost collectors).
You do this by setting the cost collector indicator in the order
type dependent parameters, which are maintained in Customizing for production orders.
- If the indicator is set, the costs are collected on a cost collector.
In this case you use periodic product controlling. The preliminary
costing, continuous costing and final costing are carried out at the
product cost collector level. In this case you determine work in process and variance periodically.
- If the indicator is not set, you collect directly on the production
order. In this case you cost products by order. The preliminary
costing, continuous costing and final costing are carried out at the
production order level. In general you determine work in process and variance with reference to batchs.
For more information refer to the release information
Periodic Controlling At Product Level
Change system parameters in customizing
You configure the system by maintaining the cost collector
indicator in Customizing production orders by choosing Master data -> Order ->
Define order type parameters.