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The Cost Object Controlling component is designed to answer the question: "What costs have been incurred for which objects?" To answer this question, the component assigns the costs incurred in the company to the company’s output. The output of a company can consist of materials manufactured in-house, individual orders, or intangible goods.

This component offers real-time cost management functions that determine the cost of goods manufactured in all plants.

The Cost Object Controlling component enables you to determine the cost of goods manufactured or the cost of goods sold for the manufacturing or service output of the company.

You can:

You can use the functions of Cost Object Controlling by lot or by period.

Cost Object Controlling supplies basic information for the following business functions:

Implementation Considerations

Here are some of the ways you can utilize the Cost Object Controlling component:

Cost Object Controlling also can provide special information on:

The cost of goods manufactured for finished products and the work in process calculated for orders can be used to capitalize the inventories in your balance sheet.


Before you use the Cost Object Controlling (CO-PC-OBJ) component in the R/3 System, you establish the planned (budgeted) costs for each product in a cost estimate. You can use various costing methods in Product Cost Planning (CO-PC-PCP) for this purpose.

Cost Object Controlling accesses master data and transaction data in Production Planning (PP), Production Planning - Process Industries (PP-PI), Materials Management (MM), Sales and Distribution (SD), and Overhead Cost Controlling (CO-OM).

You can view the data of Cost Object Controlling in the Product Cost Controlling Information System (CO-PC-IS).

When you settle, you can transfer the data of Cost Object Controlling to other components in the system:

See also: Integration of Cost Object Controlling


All postings of actual data that refer to a cost object result in an immediate debit of the cost object.

The closing activities at the end of the period allow you to do the following:

Reporting functions are supported by the Cost Object Controlling Information System.

In the R/3 System, you can analyze planned costs, target costs, actual costs, and quantity information at various levels, such as that of the plant, product group, or individual cost objects. The data are always available in real time.

Drilldown capabilities enable you to access detailed information.


From the evaluations at plant level, you drill down to the product groups and from there down to materials/products or individual orders.

See also:

The sections following this one tell you:

This documentation also provides detailed background information on the functions provided in Cost Object Controlling and the different scenarios available.

Cost Object Controlling in the R/3 System is divided into the following subcomponents:

For detailed information on creating material cost estimates, such as for the purpose of calculating the standard costs of your materials, see the document Product Cost Planning.

For detailed information on evaluating data in the information system, see the document Product Cost Controlling Information System.

The present documentation does not contain detailed information on cost accounting for projects. For information on cost accounting in engineer-to-order environments, refer to the document Project System.


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