Cost Objects
You can plan costs for materials without reference to an order.
Costing at the Material Level Without Reference to an Order
Standard costs for materials are calculated in the Product Cost Planning component. Costing without reference to an order has the following purposes:
To calculate the cost of a product before an order to commence manufacturing is placed
To optimize the cost of goods manufactured by comparing different cost estimates
To provide information for the following functions:
Comparisons between the cost estimate and the order. You can compare standard costs, planned costs, and actual costs.
Calculation of variances between target costs and actual costs
Contribution margin accounting
Inventory valuation
Cost Objects
Cost objects are objects to which costs can be assigned on a cause-effect basis. You assign the costs using the functions of Cost Object Controlling
.
The following cost objects are available:
You use product cost collectors in the Product Cost by Period component. You can use product cost collectors in make-to-stock production and in mass production on the basis of sales orders if you are using a valuated sales order stock in sales-order-related production.
See also: Product Cost Collectors in Sales-Order-Related Production
Manufacturing orders
Manufacturing orders can be production orders or process orders.
If you are using manufacturing orders as cost objects, you normally use the functions of the Product Cost by Order component. You can use manufacturing orders as cost objects both in make-to-stock production and in sales-order-related production.
Sales document items
Sales document items are items in inquiries, quotations, or sales orders (see also: Sales Order Items That Carry Costs and Revenues).
If you are using a sales document item as a cost object, you use the functions of the Product Cost by Sales Order component.
Projects and their WBS elements
Networks
Internal orders
More Information
For information on projects, refer to the document Project System
.
For information on internal orders, refer to the document Internal Orders
.