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To calculate the material, production, and overhead costs for a material, costing with quantity structure can access the following master data in other R/3 components:


Data accessible for costing purposes


Material master records and purchasing info records


Bills of material, routings and work centers


Structure link Master recipes and Structure link resources


Cost centers and activity types , Structure link business processes


The material costs for a material are calculated using the BOM and the master records of the materials in the BOM. The production costs are calculated using the routing, the work centers where the respective operations are carried out, the cost centers, and the activity types. You can calculate overhead using the material costs and the production costs as a base.

In the Production Planning (PP) module, the work center is the organizational entity in which an operation is carried out. Every work center is linked to a cost center. The cost center is the organizational entity in the Controlling (CO) component where costs are incurred .

A routing contains the default values for the production of a product. The work center contains such things as

On the basis of the formula in the work center and the default values in the operation, the system calculates the anticipated activity. This activity is valuated using the prices in Cost Center Accounting to calculate the planned costs for the operation.

In the routing, you can also assign the material components contained in the bill of material to the individual operations. This enables you to plan


The integration described above also applies if you work with the PP-PI master data (master recipes, material lists and resources) instead of the PP master data (BOMs, routings, work centers). The material list assigned to the master recipe contains the information pertaining to the material components used. The phase overview details the work required to manufacture the product and the default values. The resource is the organizational unit at which an operation or phase is carried out. It also specifies a cost center.


In view of the high level of integration with the master data of other R/3 modules that is relevant to costing, you should check the entries in those modules before creating cost estimates.

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