Purpose 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:
Standards with which to assess production efficiency in Cost Object Controlling (CO-PC-OBJ)
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 |
|---|---|
| A view of the costs of a material cost estimate broken down into cost groups, such as material costs, production costs, and overhead costs. |
| Detailed information about the costs contained in a material cost estimate |
| Detailed information about the costs contained in a material cost estimate, sorted by cost element |
| Quick overview of the BOM and costs of a material cost estimate in hierarchical form |
| 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:
Information about Material Cost Estimates | |
|---|---|