Select language:

Function documentationPurpose of Product Cost Planning

 

You use Product Cost Planning to:

  • Calculate the non-order-related cost of goods manufactured (COGM) and cost of goods sold (COGS) for each product unit

  • Establish how the costs are broken down for each product, and to calculate the value added for each step of the production process (cost rollup)

  • Optimize the cost of goods manufactured through comparison costing with the Product Cost Controlling Information System

  • Support make-or-buy decisions

  • Provide information for other SAP applications, such as:

Features

Product Cost Planning enables you to answer questions such as:

  • Which is our most effiicient production line?

  • How much of the total cost is overhead?

  • How much have our costs increased, and why?

  • How much can we lower our unit costs by increasing output?

Reports

You can analyze the costing results using various reports:

Report

Contents

Cost Component Split

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

Itemization

Detailed information about the costs contained in a material cost estimate or base object cost estimate

Itemization by Cost Element

Detailed information about the costs contained in a material cost estimate or base object cost estimate, sorted by cost element

Costed Multilevel BOM

Quick overview of the BOM and costs of a material cost estimate or base object cost estimate in hierarchical form

Partner Cost Component Split

Overview of the value added portions of organizational units (partners) in relation to the total costs of a material

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

Was this page helpful to you?