Purpose
Product Cost Planning (CO-PC-PCP) is an area within Product Cost Controlling (CO-PC) in which you can plan the non order-related costs of, and determine prices for, materials and other cost accounting objects.
You can use Product Cost Planning to break down the costs of your company’s products, such as
for analysis purposes. You can analyze the costs in various ways, for example:
Product Cost Planning comprises the following:
Cost Estimate with Quantity Structure |
Costing materials that have access to a quantity structure in PP |
Cost Estimate without Quantity Structure |
Costing materials without a quantity structure in PP |
Price Update |
Transferring the results of material cost estimates to the material master |
Reference and Simulation Costing |
Planning new products and services using base planning objects |
Easy Cost Planning and Execution Services |
Rapid cost planning without master data within an ad hoc cost estimate |
For further information, see the following:
Implementation Considerations
The following graphic provides an overview of the organizational structures required for costing:
Materials are always valuated at
valuation area level. Costing must be performed at plant level. Consequently you have to select the plant as valuation level in Customizing under Enterprise structure ® Definition ® Logistics – General in the step Define valuation level . When you do this a valuation area is created with the same name for each plant. All costing data is then stored with reference to a plant.Integration
In order to carry out costing, Product Cost Planning accesses master data in other components, such as BOMs, routings, and work centers from Production Planning, and cost centers, activity types, and business processes from Overhead Cost Controlling. Conversely, you can make the costing results available for other applications. For example, you can use the costing results to update the standard price in the material master and carry out material valuation using this price.
For more information, see
Information for Other Applications.Because of this high integration of data, SAP recommends that you make a thorough check to make sure that the correct data is accessed for the quantity and value structures before starting Product Cost Planning, in order to ensure that the costing results are reliable.
For more information about integration, see
Origin of Costing Data.Features
The following table gives you an overview of the menu and functions of Product Cost Planning:
Button |
Function |
Cost estimate |
Material Costing ® Edit Costing Run |
Cost estimate for multiple materials with BOM and routing |
Is used to process mass data and is created automatically using Production Planning data (product cost estimate) |
Material Costing ® Cost Estimate with Quantity Structure |
Cost estimate for a material with BOM and routing or master recipe |
Is created automatically using the Production Planning data (product cost estimate) |
Material Cost Estimate with Quantity Structure ® Additive Costs |
Additive cost estimate |
Is created using data that you enter manually (unit costing) |
Material Costing ® Cost Estimate Without Quantity Structure |
Cost estimate for a material without BOM or routing |
Is created using data you entered manually (unit costing) or transferred from a non-SAP system |
Reference and Simulation Costing |
Base object cost estimate |
Is created using data that you enter manually (unit costing) |
Easy Cost Planning & Execution Services Edit Ad hoc Cost Estimate |
Ad hoc cost estimate |
Is created using a planning form ( costing model), that can access the data in the SAP system |
Button |
Function |
Material Costing ® Price Update |
Transfer of cost estimate results to the material master record |
Material Costing ® Master Data for Mixed Cost Estimate |
Definition of procurement alternatives and mixing ratios for a mixed cost estimate |
Easy Cost Planning & Execution Services Edit Ad hoc Cost Estimate |
Define planning forms for Easy Cost Planning |
Button |
Functions accessible |
Examples |
Information System |
The various reports for Product Cost Planning |
|
Environment |
Further Product Cost Planning functions |
|
You use the costing tools provided by Product Cost Planning according to the availability of data in Production Planning (PP and/or PP-PI) and to the type of reference object that you want to cost (see graphic below) :
The system determines the quantity structure (BOMs and routings or master recipe) for a material and valuates it automatically for the cost estimate using data from Production Planning (PP or PP-PI). For more information, see
The cost estimate calculates the costs for
without accessing BOMs and routings in Production Planning. For this enter the costing items manually. When doing this, you can access SAP system data such as materials, business processes, cost centers and activity types. For further information, see the following:
The cost estimate calculates the costs for
without accessing BOMs and routings in Production Planning. For this enter the costing items manually. When doing this, you can access SAP system data such as materials, business processes, cost centers and activity types. You can also display the costing structure hierarchically and, using a worklist, access frequently used data. For more information, see Multilevel Unit Costing.
Activities
You can access the functions of Product Cost Planning from either the Accounting menu or the Logistics menu:
You make all the settings for Product Cost Planning in Customizing for Product Cost Controlling. For more information, see
Preparing for Costing: Customizing and the Implementation Guide (IMG) for Product Cost Controlling.