The cost estimate with quantity structure is a tool for planning non-order-related costs and establishing prices for materials. It is used to calculate the cost of goods manufactured and cost of goods sold for each product unit. You can use the results of the standard cost estimate for material valuation for standard prices.

The cost estimate with quantity structure presupposes that a bill of materials and routing (PP) or a master recipe (PP-PI) exist for the material to be costed . For more information about this, see Master Data for the Cost Estimate with Quantity Structure.

The cost estimate with quantity structure uses the PP or PP-PI master data to determine the material consumption and internal activities required to produce the product. The cost estimate is created automatically using this data.

You can use the costing run to process mass data.

There are a number of reports in the cost estimate itself and in the information system for Product Cost Controlling that you can use to display the costing results together with the relevant quantity structure:

• Costed multilevel BOM
• Itemization

In addition to the PP-oriented displays of the costing results mentioned above, there is a cost component split for each material that divides the costs into cost components:

• Cost component split for the cost of goods manufactured
• Primary cost component split
• Partner cost component split

Purpose of Product Cost Planning

Calculation of Cost of Goods Manufactured and Cost of Goods Sold