Product Cost Planning 

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

  • Lists of existing material and base object cost estimates
  • Detailed reports
  • Comparative reports

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 Working with the Cost Estimate with Quantity Structure and Cost Estimate with Quantity Structure: Process Flow.

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.